Austria at zero point: What happens after Nehammer's resignation?

Austria at zero point: What happens after Nehammer's resignation?

Austria is on the brink of political upheaval. After the failure of coalition negotiations between the ÖVP, the SPÖ and the Neos, Chancellor Karl Nehammer announced his resignation, which has alarming consequences for the domestic industry. The current economic crisis, which is the longest recession since 1945, is putting local entrepreneurs in a precarious position. The industrial association urgently demands a clear commitment to stable and sustainable economic activity from the incoming government, as the insecurities in the country continue to grow ots.at reported.

Coalition negotiations failed

Negotiations, which began in November, ended abruptly when the Neos withdrew from the talks. Nehammer had tried to form a coalition with the SPÖ and the Neos in order to keep the FPÖ, which won the last elections, out of power. Differences over strategies to combat the stagnating economy and budget deficits proved insurmountable. With his resignation, Nehammer leaves the ÖVP in a difficult position, and there is already speculation about possible successors zdf.de.

The uncertainties as to whether the ÖVP will be able to find a new coalition partner are growing. The economic wing of the ÖVP is aiming for cooperation with the FPÖ, the most successful party in the last elections, while the SPÖ believes further cooperation without the Neos is conceivable. Given the political instability combined with the poor economic situation, the pressure for rapid reforms is becoming increasingly intense. The necessary steps to initiate reforms in the areas of labor market and energy are more urgent than ever.