Coalition Talks in Austria Disrupted by Exit of Liberal Neos Party

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Coalition Talks in Austria Disrupted by Exit of Liberal Neos Party

Investing.com -- The liberal Neos party, one of the three parties involved in negotiations to form Austria's next government, abruptly withdrew from the talks on Friday. This unexpected move has thrown efforts to establish a center coalition government into chaos by sidelining the far-right Freedom Party (FPO).

The Neos party's withdrawal has created uncertainty regarding the future of the coalition negotiations and bolstered support for the FPO, a Russia-linked, Europe-skeptic party. Despite receiving 29% of the votes in the recent parliamentary elections in September, the FPO criticized its exclusion from the talks.

Although the FPO needs a coalition partner to govern and no party seems willing to cooperate, its support has increased since being marginalized. This situation has heightened pressure on the two remaining parties in the negotiations – the conservative People’s Party (OVP) led by Chancellor Karl Nehammer and the Social Democrats (SPO) – to find a solution.

Neos leader Beate Meinl-Reisinger announced the party's withdrawal during a press conference, accusing other parties of lacking courage to make bold decisions, including during their final meeting that extended into Thursday night.

The Neos party supports tax cuts and structural reforms, including controversial ideas such as raising the retirement age. The party, which has never held a position in national government, positions itself as a modernizer against the traditional power parties SPO and OVP.

The withdrawal of the Neos party underscores the increasing difficulty of forming stable governments in European countries such as Germany and France. The far-right is gaining ground in these countries, but many parties are reluctant to form alliances with them.