"What Happened: Chancellor Karl Nehammer announced his resignation yesterday after coalition talks with Social Democrats collapsed, following NEOS party's withdrawal. The failure leaves Austria's government in limbo as major parties refuse to work with the far-right Freedom Party, which won 29% in September elections. Economic Impact: Austria faces severe economic challenges with a two-year recession and 3.7% budget deficit above EU limits. The next government must implement €18-24 billion in savings while dealing with rising unemployment and political instability."