vienna
Associated Press
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Austrian Chancellor Karl Nehammer announced on Saturday that he would resign in the coming days after two failed attempts to form a new government.
The announcement came a day after the liberal Neos party abruptly withdrew from talks, and after the National Party and the Social Democratic Party continued coalition talks.
“Unfortunately, we have to say today that negotiations have ended and the People’s Party will not continue negotiations,” Conservative Austrian Chancellor Karl Nehammer said in a statement on social media.
He said the “destructive forces” within the Social Democratic Party “have the upper hand” and that the KMT will not sign up to plans that run counter to economic competitiveness.
Social Democratic Party leader Andreas Babler said he regretted the People’s Party’s decision to end negotiations. “This is not a good decision for our country,” he said.
Mr Babler said one of the main hurdles had to do with how to repair the “record deficit” left by the previous government.
“I proposed to Karl Nehammer and the People’s Party to continue negotiations and called on them not to stand down,” he told reporters on Saturday evening.
Austria’s next government faces the challenge of saving between 18 billion and 24 billion euros ($18.5 billion to $24.75 billion), according to the European Commission.
Furthermore, Austria has been in recession for the past two years, unemployment has increased, and the budget deficit currently stands at 3.7% of gross domestic product, exceeding the EU limit of 3%.
Talks have dragged on since Austria’s president tasked the conservative chancellor with forming a new government in October.
The request came after all other political parties refused to cooperate with the leader of the far-right Freedom Party, who won for the first time in September’s national elections with 29.2% of the vote.
