Austria’s two largest centrist parties are rapidly progressing towards a coalition agreement, excluding the far-right Freedom Party (FPO), which was unable to establish a government, according to party representatives on Thursday.
If the conservative People’s Party (OVP) and the Social Democrats (SPO) succeed in forming a coalition with some backing from smaller centrist parties, it would mark their third attempt. Their initial effort led by the OVP in January was unsuccessful, followed by a failed attempt from the eurosceptic, Russia-aligned FPO last week.
This period marks the longest duration for Austria to form a government since World War II. Should a resolution not be reached soon, a snap election is probable, with polls indicating that the FPO could increase its vote share from the 29% it received in September’s parliamentary elections.
President Alexander Van der Bellen, who is responsible for overseeing government formations, stated after the collapse of the FPO-led initiative that four options remain: a snap election, which cannot occur for at least three months; a minority government; a renewed attempt at forming a majority coalition; or a temporary expert government.
As the OVP and SPO move closer to a coalition agreement, the likelihood increases that Van der Bellen will favor a centrist coalition. The two parties have been engaged in intensive discussions behind closed doors to finalize a deal swiftly.
Party representatives indicated they could neither confirm nor deny reports from two regional newspapers on Thursday morning regarding an agreement on how to reduce the budget deficit to within the European Union’s 3% limit of economic output.
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The FPO and OVP had announced a similar deficit agreement just three days into their unsuccessful negotiations.
Officials from the SPO and OVP, speaking on the condition of anonymity, noted that while it is difficult to predict when a broader coalition deal might be finalized, discussions are progressing rapidly, and an agreement could be reached by next week.
