Vienna [Austria], January 5 (ANI): Austrian Chancellor Karl Nehammer has announced that he will resign "in the coming days" as the talks between the country's biggest centrist parties on forming a government without the far-right Freedom Party (FPO) failed, Al Jazeera reported.

His announcement on Saturday came a day after the liberal Neos party withdrew from the negotiations with Nehammer's conservative People's Party (OVP) and the Social Democrats (SPO).

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Nehammer said, "After the breakoff of the coalition talks I am going to do the following: I will step down both as chancellor and party chairman of the People's Party in the coming days."

In a video shared on social media accounts, he said that "long and honest" negotiations with the centre-left were not successful despite a shared interest in fending off the gaining far right. He said that his party would not back steps which it believes would harm the economy or new taxes, according to Al Jazeera reported.

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Karl Nehammer announced that he would enable "an orderly transition" and railed against "radicals who do not offer a single solution to any problem but only live from describing problems".

While sharing the video statement on X, Nehammar wrote, "We have negotiated long and honestly. No agreement is possible with the SPO on key points. The People's Party stands by its promises: We will not agree to measures that are hostile to performance and the economy or to new taxes. We are therefore ending negotiations with the SPO and will not continue them."

https://x.com/karlnehammer/status/1875608844984094740

Earlier in September, the far-right Freedom Party (FPO) won the first parliamentary election in its history by getting close to 30 per cent of the vote. However, other parties did not agree to govern in a coalition with the eurosceptic, Russia-friendly FPO and its leader Herbert Kickl. In October, Austria's President Alexander Van der Bellen asked Nehammer to form a coalition.

Nehammer's statement comes after he failed to reach an understanding with the Neos party. Neos leader Beate Meinl-Reisinger said progress was not possible and that "fundamental reforms" had not been agreed upon.

After the resignation of the chancellor, the OVP is expected to convene to discuss potential successors. The political landscape in Austria remains uncertain, with no immediate possibility of forming a stable government as the political parties have differences with each other, the report said.

Alexander Van der Bellen might now appoint another leader and an interim government as the political parties try to find a way out of the deadlock. The next government in Austria faces the challenge of having to save 18-24 billion euros, according to the European Council, Al Jazeera reported.

Austria has been in recession for the past two years and is experiencing rising unemployment. The budget of Austria stands at 3.7 per cent of gross domestic product - above the European Union's limit of 3 per cent. (ANI)

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