Political Turmoil: Neos Exits Austrian Coalition Talks

The Neos party's abrupt withdrawal from Austrian coalition talks has caused political uncertainty, strengthening the far-right Freedom Party's position. Opinion polls show increased support for the FPO, which criticizes the coalition talks as an 'undemocratic' process. Talks with the OVP and SPO show no substantial progress, raising questions about future governance.

In a surprising turn of events, the small liberal Neos party withdrew from Austrian coalition talks on Friday, impacting the formation of a new government. The unexpected move has heightened political uncertainty, particularly benefiting the sidelined far-right Freedom Party (FPO) since it won September's national elections.

Despite garnering 29% of the vote, the FPO criticizes the coalition efforts led by second to fourth-placed parties as 'undemocratic.' Neos leader Beate Meinl-Reisinger announced her party's exit at a hastily arranged news conference, accusing other negotiators of lacking the resolve to make hard decisions.

Talks with Chancellor Karl Nehammer's conservative People's Party and the Social Democrats have so far fallen short of meaningful progress. Neos pushed for lower taxes and structural reforms such as raising the retirement age. The FPO continues to pressure Nehammer to resign, while a snap election looms as a last resort, despite being against the interest of the OVP and SPO.

(With inputs from agencies.)