Austria's two leading centrist parties are close to finalizing a coalition agreement excluding the far-right Freedom Party (FPO), as it failed in its attempt to form a coalition government.
This potential coalition between the conservative People's Party (OVP) and the Social Democrats (SPO) would mark the third attempt, following a failed effort by the OVP and a subsequent unsuccessful attempt by the FPO. This delay in government formation is unprecedented in Austria since World War Two. If no resolution is reached promptly, a snap election seems probable, with polls indicating potential gains for the FPO.
President Alexander Van der Bellen, tasked with government formation, outlined four possibilities after the recent breakdown, including a snap election, a minority government, a renewed coalition effort, or an interim expert-led administration.
As negotiations progress swiftly behind closed doors between the OVP and SPO, a centrist coalition appears to be the preferred choice for Van der Bellen. While reports suggest progress, party representatives remain cautious in confirming any details, aiming to swiftly address the budget deficit within the EU's 3% economic output limit.
Officials from both parties mentioned anonymously that a comprehensive coalition deal timeline is uncertain, but constructive discussions are ongoing, with a potential agreement within the coming week.