Austria is preparing to establish its first three-party coalition government, which will exclude the far-right Freedom Party of Austria (FPO). After several rounds of discussions, the Austrian People’s Party (OVP), the Social Democratic Party of Austria (SPO), and the liberal Neos party have agreed to enter formal government negotiations. Chancellor Karl Nehammer of the OVP confirmed that they have completed the exploratory phase and will now focus on creating a detailed coalition agreement.
The three parties are committed to building a government centered on stability and economic efficiency, with Nehammer emphasizing the need for fiscal responsibility in light of Austria’s economic contraction. The new coalition, called the “Candy Coalition” due to the colors of the parties’ flags—turquoise for OVP, red for SPO, and pink for Neos—aims to focus on prudent spending in response to economic challenges.
Despite the FPO’s victory in the September 29 parliamentary elections with 29% of the vote, the three main parties have refused to cooperate with the far-right faction. This decision led to President Alexander Van der Bellen granting Chancellor Nehammer the mandate to form a new government. The coalition talks will be pivotal in shaping Austria’s political future, as the country faces a potential economic contraction for the second consecutive year, marking the first such downturn since 1950.
The coalition agreement will focus on stabilizing the economy, including controlling public spending and ensuring that government funds are used efficiently. The outcome of the ongoing negotiations will play a crucial role in Austria’s response to both its domestic economic challenges and its position within the broader European context.
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