Austrian Chancellor Nehammer resigns: I cannot support taxes that harm our country and are not in the interest of citizens

(Patria) - Negotiations between Austria's two largest centrist parties to form a coalition government without the far-right Freedom Party have failed, Chancellor Karl Nehammer said, a day after the liberal NEOS party left the talks.

"I will step down as chancellor and leader of the (conservative) People's Party (OVP) in the coming days and enable an orderly transition," Nehammer said in a video statement on X after coalition talks with the Social Democrats (SPÖ).

His announcement came shortly after the party broke off coalition talks with the Social Democrats.

"It is clear that destructive forces within the SPÖ have prevailed," Nehammer said, confirming the end of these talks as well.

The reason cited is the inability to reach an agreement on key points. Pressure on Nehammer within the party has recently increased, APA reports. He stressed that the ÖVP will not agree to any program that is hostile to the economy. At the same time, Nehammer made it clear that he is still not ready to lead coalition talks with the far-right Freedom Party of Austria (FPÖ) under the leadership of Herbert Kickl.

"It is my deep conviction that radicals do not offer a solution to any problem," Nehammer said.

In his video message, Nehammer emphasized that destructive forces within the SPÖ are gaining the upper hand, and that the ÖVP will not support programs that are, in his words, "hostile to the economy, competitiveness, and jobs." He added that one must be willing to compromise in negotiations, but not at the expense of citizens' interests.

"I have always clearly said that I will not support taxes that harm our country. I kept my word," Nehammer stressed, adding that he is stepping down to enable an orderly transfer of power.

Nehammer's announcement came just hours after the ÖVP and SPÖ began talks on forming a government. However, there were fears they might struggle to reach an agreement given their differing ideas on how to overcome the country's crisis and reorganize the state budget. Their brief talks began a day after the liberal NEOS party withdrew from coalition talks with the ÖVP and SPÖ.

The ÖVP, SPÖ, and NEOS had been negotiating the formation of a coalition since mid-November with the aim of keeping the election winner, the right-wing populist Freedom Party of Austria (FPÖ), out of power.

In Austria's parliamentary elections in September, the far-right Freedom Party of Austria (FPÖ) won, but no other party was willing to cooperate with the FPÖ or its leader Herbert Kickl.