VIENNA, Feb 12 (Reuters) - Austria was set to form its first government led by the far-right Freedom Party (FPO) on Wednesday, following unsuccessful negotiations with the conservative People's Party (OVP) that ended in a stalemate with both sides pointing fingers at each other.
The eurosceptic, Russia-friendly FPO was aiming to lead a government for the first time since its establishment in the 1950s under a leader with ties to the Nazi regime.
The FPO emerged as the top party in September's election with approximately 29% of the vote but only managed to initiate government formation talks last month after centrist efforts failed. The OVP stood as its sole potential coalition partner.
"FPO leader ... Herbert Kickl has informed President Alexander Van der Bellen that the coalition talks with the OVP have collapsed," the FPO declared in a statement right after Kickl's meeting with Van der Bellen at the president's office.
Proposing a snap election, the FPO anticipated expanding its lead over other political parties, although the decision now rests with President Van der Bellen.
In a televised address that evening, Van der Bellen outlined four potential paths forward: a snap election in around three months, a minority government, a renewed coalition attempt with majority support, or an interim expert government. He called for all parties to embrace compromise, a quality he felt was missing in the previous talks.
Initially hopeful for a swift agreement due to shared views with the OVP, especially on stringent immigration policies, the FPO's demands started to strain the relationship, leading to an impasse. Contentious demands included exemptions from EU sanctions on Russia, challenging EU court decisions, and compensating those affected by COVID policies under the OVP government.
Disagreements extended to ministry allocations, with the FPO insisting on key ministries despite a slim lead over the OVP in the election. The appointment of Chancellor was also a sticking point.
OVP leader Christian Stocker criticized FPO's leader Kickl for not transitioning effectively from opposition leader to potential head of government, missing a chance to lead Austria. The OVP claimed that the FPO failed to address critical issues such as maintaining autonomy from Russian influence and upholding EU commitments.
As political analysts speculated about the FPO's future following the breakdown, the opinion was divided on whether the party had overreached with its demands or could rebound stronger after a potential snap election.
Political scientist Lore Hayek from the University of Innsbruck suggested that Kickl's approach had alienated OVP members open to a coalition, likely sidelining his party from government formation for the upcoming year.