VIENNA – Austrian Chancellor Karl Nehammer expressed optimism about forming a coalition government by early January, despite ideological clashes with potential partners in ongoing three-way negotiations.
In an interview with Der Standard published on Saturday, Nehammer said the timeline for finalizing a coalition remains aligned with previous government formations, adding that the talks are proceeding “neither slower nor faster” than during the 2020 turquoise-green negotiations. The discussions between his conservative People’s Party (ÖVP), the Social Democrats (SPÖ), and the liberal Neos began just over a week ago.
The negotiations are crucial as Austria faces political challenges following September’s general election, where the far-right Freedom Party (FPÖ) emerged as the largest party with 29% of the vote. However, FPÖ’s lack of a willing coalition partner led President Alexander Van der Bellen to ask Nehammer to form a government that excludes the far-right party.
Key Points of Contention
The coalition talks have revealed significant ideological divides, particularly on taxation. Nehammer and the Neos have pledged to avoid introducing new taxes, while the SPÖ has pushed for a wealth and inheritance tax as part of its platform to address inequality and inflation.
Tensions surfaced publicly on Friday when Nehammer took to social media to reiterate his opposition to wealth taxes, responding to a tabloid report suggesting the SPÖ was making it a condition for the coalition. “There will be no wealth or inheritance taxes with the ÖVP,” Nehammer posted, warning that if the SPÖ insisted, “the talks will end quickly.”
A spokesperson for SPÖ leader Andreas Babler refrained from directly addressing Nehammer’s comments but emphasized the party’s focus on ensuring fair contributions from those who have benefited fiscally during inflationary pressures.
Pressure Mounts for Resolution
Nehammer is under pressure to finalize a deal promptly, particularly after his party’s poor showing in Styria’s state elections last week, where the FPÖ made significant gains. Analysts attribute some of the ÖVP’s losses to public dissatisfaction with the pace and direction of coalition negotiations.
Despite these challenges, Nehammer maintains that a thorough approach is critical to ensure a stable government. Observers see the potential coalition between the ÖVP, SPÖ, and Neos as a test of whether Austria’s centrist forces can unite to counterbalance the growing influence of the FPÖ.