Austrian Coalition Talks Collapse: New Government Uncertainty Looms

Talks between Austria's centrist parties to form a coalition government without the Freedom Party (FPO) have collapsed. Chancellor Karl Nehammer plans to step down amid stalled negotiations. The collapse heightens the possibility of FPO forming a government or a snap election being called.

In a significant political development, talks between Austria's two leading centrist parties about forming a coalition government have failed. Chancellor Karl Nehammer announced on Saturday that he intends to resign following the breakdown in negotiations.

Nehammer's decision to step down comes shortly after the liberal Neos party exited the talks, criticizing the remaining parties for not taking decisive steps forward. The eurosceptic Freedom Party (FPO), which won the largest share of the vote in the September election, remains without a coalition partner.

With an FPO-led government or a snap election now looming, Social Democrats leader Andreas Babler has warned about the potential threats to democracy if a right-wing coalition takes power, further complicating Austria's political landscape.

(With inputs from agencies.)