Austria’s centre-right People’s Party (ÖVP) and Social Democrats (SPÖ) have reopened talks to see if they can revive their once-powerful grand coalition. This comes after failed attempts to form a government with both the right-wing Freedom Party (FPÖ) and the liberal NEOS party.
With Austria stuck in political limbo for over 140 days—the longest in its history—these negotiations are a last-ditch effort to break the deadlock. But even if the ÖVP and SPÖ reach an agreement, they’d be hanging by a thread with just a one-vote majority in parliament. The Greens and NEOS, however, have hinted at supporting them on certain policies.
Biggest Hurdles: Money and Power Struggles
Deep-seated disagreements remain, particularly over taxes and government spending. The SPÖ insists on raising taxes to tackle the growing budget deficit, which has already exceeded 3% of GDP—a threshold that could trigger EU penalties. The ÖVP, however, firmly rejects taxing wealth and inheritance, a stance that stalled negotiations back in January.
Adding fuel to the fire, both parties are locked in a tug-of-war over the finance and interior ministries, refusing to relinquish control.
FPÖ Pushes for Snap Elections
FPÖ leader Herbert Kickl has slammed the idea of an ÖVP-SPÖ coalition, blaming both parties for Austria’s rising debt and past immigration failures. Calling for new elections, he argues that Austrians deserve a fresh start.
The ÖVP, however, is desperate to avoid snap elections, as polls suggest its support would plummet by seven points to just 19%, dropping to third place. Meanwhile, the SPÖ would land at 22%, while the FPÖ would surge to 35%, solidifying its lead.
What’s Next? Deal or New Elections?
If the ÖVP and SPÖ can hammer out a deal soon, Austria might see a new government as early as next week. If not, voters will head back to the polls, setting the stage for an electoral shake-up—with the FPÖ poised to dominate.
