Austrian govt might move towards deadlock as ruling coalition breaking down

Austria's conservative Chancellor Sebastian Kurz is now ruling out continuing to work with Vice Chancellor Heinz-Christian Strache of the far-right Freedom Party, a coalition source said on Saturday.

The decision came shortly before Kurz was due to make a statement in response to footage published on Friday that has thrown the coalition's future in doubt. It apparently shows Strache offering to funnel state contracts towards a company in exchange for possible financial and political support.