Austrian Chancellor Karl Nehammer announced on Saturday that he would resign in the 'coming days' following the collapse of coalition negotiations with the Social Democrats (SPÖ). In a video message shared on the X platform, Nehammer expressed that reaching an agreement on essential issues was not feasible, stating, "We are therefore ending negotiations with the SPÖ." This marks a significant political shift in Austria, leaving the country's government future uncertain amidst rising tensions.

The decision follows the withdrawal of the liberal NEOS party from three-party coalition talks, aimed at forming a centrist government to curb the influence of the far-right Freedom Party (FPÖ), which secured 28.8% of the vote in the September elections. The ÖVP, led by Nehammer, received 26.3%, while the SPÖ garnered 21.1%. The aim was to form a stable coalition that would prevent the FPÖ from gaining more power in the government (source: Le Monde).

Nehammer criticized internal divisions within the ÖVP that hampered progress and highlighted the challenges presented by discussions on taxation and budget deficits. The cancellation of the coalition talks has led to discussions about possible new elections, intensifying political instability (source: The Local).

President Alexander Van der Bellen had urged for a swift government formation on Friday, noting the necessity of a stable administration for the nation's future, especially given Austria's struggling economy. The unfolding scenario leaves open the possibility of a coalition involving the far-right FPÖ or fresh elections, marking an uncertain period for Austrian politics (source: India Times).