Austria's Historic Coalition: A New Era Begins

Austria swears in its first three-party coalition since World War Two. The conservative People's Party, Social Democrats, and liberal Neos form the government, excluding the far-right Freedom Party despite their electoral success. The new government faces economic challenges and social tensions amidst rising far-right support.

Austria's political landscape shifted dramatically on Monday with the swearing in of its first three-party coalition government since World War Two. The coalition, consisting of the conservative People's Party (OVP), Social Democrats (SPO), and liberal Neos, marks a significant political change, keeping the far-right Freedom Party (FPO) out of power.

The coalition arrives at a crucial time as Austria emerges from a two-year recession, planning spending cuts and tax hikes on big business to control the budget deficit within European Union limits. The new government must also address immigration concerns after a recent attack increased public unease.

The formation of the coalition forestalled the potential for a snap election that likely would have bolstered the FPO's power. Despite the agreement on a 200-page government programme, Neos leader Beate Meinl-Resinger stressed that negotiations will continue, highlighting challenges ahead.