In Austria ÖVP and SPÖ Want To Continue Negotiations Without NeoMax Studios

After talks on a three-party coalition in Austria failed, the conservative ÖVP and the social democratic SPÖ want to continue negotiations bilaterally on a grand coalition. The leaders of both parties have announced this, said Federal President Alexander Van der Bellen.

It was clear that the urgently needed will to reform was not emerging, said Neos leader Beate Meinl-Reisinger. “We always had one goal: to do more than just what was necessary.”

Parties want to govern without FPÖ

Since mid-November, the ÖVP, SPÖ and the Neos had been negotiating a government coalition. Such a coalition of three parties would have been a first in Austria. The talks were also an attempt to keep the clear election winner, the right-wing FPÖ , out of power. “Our hand remains outstretched,” said SPÖ leader Andreas Bablertowards the ÖVP. It is now up to Chancellor and ÖVP leader Karl Nehammer to continue bilateral negotiations with the Social Democrats “on an equal footing,” he said. Babler demanded that the necessary budget consolidation should be shouldered by wealthier sections of the population.

“We remain ready to take responsibility,” said NehammerHe again called for the safeguarding of the business location, a consistent asylum policy and relief for economic performers.

Federal President puts pressure on

It was unclear whether the two parties would be able to find a compromise. The ÖVP and SPÖ must now negotiate with each other “without delay,” Van der Bay”I want clarity – quick and comprehensive clarity,” he said. But even if the conservatives and social democrats forge a grand coalition, they would only have a razor-thin majority of one vote in parliament.

The failure of the three-way talks is considered a heavy blow for Chancellor and ÖVP leader Nehammer. The head of government had planned a collaboration with the right-wing FPÖ under its party leader Herbert Kickl strictly ruled out and the three-party alliance was used as an alternative. “He is on the ropes,” said political analyst Thomas Hofer.

The FPÖ feels its predictions have been confirmed. For months it has been warning about this “political monstrosity of the loser traffic light coalition based on the German model,” said FPÖ General Secretary Michael Schnedlitz. “Karl Nehammer has ignored all these concerns because in truth he only cares about one thing: his own job as Chancellor!” The FPÖ demanded the Chancellor’s resignation.

New elections as another option

If no ÖVP-SPÖ coalition is formed, new elections are considered possible. The right-wing populists could hope for a resounding victory. Recent polls indicate another large increase in votes compared to the National Council election. The FPÖ could then significantly increase its result from 29 percent to around 35 percent.

Budget as a sticking point

The sticking point of the three-way negotiations was the planning of a new budget. Austria is in the midst of an economic crisis and at the same time has to make strict savings in order to meet the EU criteria for financial stability. The balance between austerity and measures to stimulate the economy is considered the main task of a new government.

From the ÖVP’s point of view, the SPÖ bears the main responsibility for the collapse of the three-way talks. “While parts of the Social Democrats have contributed constructively, the backward-looking forces in the SPÖ have taken over in recent days,” wrote ÖVP General Secretary Christian Stocker.

Victory for the FPÖ – but no coalition partner

At the end of September, the FPÖ won the parliamentary elections. However, no other party believed that FPÖ leader Kickl himself or the FPÖ were capable of governing. From the perspective of his political opponents, Kickl has become more radical in recent years. Since no one wanted to work with the party, negotiations were held on a so-called “sweetheart coalition”. This sweet name comes from the party’s colors: turquoise (ÖVP), red (SPÖ) and pink (Neos).

Big tasks for new government

The tasks facing a new government are immense and require largely smooth cooperation. One of the structural problems is the pension system, which can no longer be covered by contributions. The state has to spend a large part of its budget to support pension payments.

Due to high wage agreements, unit labor costs are hardly competitive any more, according to the Federation of German Industries. Unemployment is at around seven percent.

Reuters