Austria's Political Shuffle: Centrist Parties Race for Coalition

Austria's conservative People's Party and Social Democrats are quickly negotiating a coalition without the far-right Freedom Party. Previously failed attempts and potential snap elections have made this the longest government formation process since WWII. An agreement is crucial to avoid another election and stabilize governance.

Austria's two main centrist parties are hurriedly advancing towards a coalition agreement, sidelining the far-right Freedom Party (FPO) after it failed to form a government, party officials revealed on Thursday. Should the conservative People's Party (OVP) and Social Democrats (SPO) successfully strike a deal, this would be the third try with some backing from smaller centrist parties, following unsuccessful attempts led first by the OVP in January, and then by the eurosceptic FPO last week.

This delay marks the longest period Austria has faced to establish a government since the end of World War Two. Without a timely resolution, a snap election looms, with polls indicating the FPO could boost its vote share from the 29% it secured in September's parliamentary election. President Alexander Van der Bellen, overseeing government formation, stated four paths remain after the FPO's endeavor faltered: a snap election in approximately three months, a minority government, a renewed coalition effort with majority potential, or an interim government of experts.

As the OVP and SPO near a coalition pact, President Van der Bellen is inclined to propose a centrist coalition as the favored solution. Behind closed doors, intensive efforts are underway to swiftly finalize a deal. Party spokespersons neither confirmed nor denied regional newspaper reports on Thursday morning regarding an accord on restoring budget deficit compliance with the EU's 3% GDP cap. Similar terms were previously agreed three days into the doomed discussions between the FPO and OVP. SPO and OVP officials, requesting anonymity, cautioned that pinpointing a final coalition deal date is challenging, though rapid progress suggests an agreement might emerge by next week.