Neos are leaving, ÖVP and SPD are staying

Formation of government in Austria

Liberals break off talks – SPÖ and ÖVP are likely to stay there

Austria doesn’t get a “candy coalition”. The liberal Neos have withdrawn from negotiations with the SPÖ and ÖVP. But they want to continue negotiating.

After weeks of talks, the coalition negotiations between the ÖVP, SPÖ and the Neos failed. This was stated by the party leader of the liberal Neos, Beate Meinl-Reisinger, in a press conference. “I made suggestions until last night,” said Meinl-Reisinger. But the differences were too big. “This morning” she informed the Federal President and the other parties of the demolition.

According to a report by the APA news agency, conservatives and social democrats now want to continue negotiating on their own. The agency reported this, citing ÖVP circles. Both parties have a razor-thin majority in parliament. According to the APA, it was initially unclear when the talks would continue.

An SPÖ spokesman said on Friday that the Social Democrats were ready to continue negotiating and to assume “state responsibility”. According to the APA, the party still held internal discussions on Friday evening, while the ÖVP wanted to hold coalition talks on Friday evening.

SPÖ leader Andreas Babler had previously said in a video message on the online service There remains “no other alternative to assuming state responsibility in this time of crisis.” His party “doesn’t want to wake up in a blue-black future, in a bleak future,” said Babler, referring to a possible coalition between the ÖVP and the right-wing populist FPÖ.

Federal Chancellor and ÖVP leader Karl Nehammer had previously confirmed his willingness to continue talking on X. “As a people’s party, we were and are ready to take responsibility and have the courage to tackle political reforms and do what is necessary,” said Nehammer in his video message after the failure of the three-way talks involving the Neos.

In the National Council election on September 29, 2024, the right-wing populist FPÖ won the majority with almost 29 percent. But Federal President Alexander Van der Bellen did not commission the FPÖ to form a government. An unusual case has occurred: “It is completely new that there is an election winner with whom none of the other parties apparently want to govern,” explained Van der Bellen.

That’s why the ÖVP, SPÖ and the Neos have been negotiating a “candy coalition” since mid-November. The candy name is derived from the party colors turquoise (ÖVP), red (SPÖ) and pink (Neos). The ÖVP and SPÖ also have a majority, but only one vote.

In the press conference, Meinl-Reisinger explained that Austria was in “challenging times” and mentioned the economic crisis and inflation. But the political situation is also difficult. Because there were two big election winners: the FPÖ and the Neos themselves. Because FPÖ leader Herbert Kickl failed to create a basis of trust with the other parties, it is correct that he did not receive a government contract.

The party then entered into coalition negotiations with the SPÖ and ÖVP. The party leader explains that the Neos wanted to implement structural reforms. Austerity measures are necessary to restore Austria’s competitiveness. The country needs to save strictly to meet EU criteria for financial stability.

The biggest sticking point was the issue of pensions, said the party leader. You need social balance, but also balance between generations, says Meinl-Reisinger. That’s why the retirement age cannot continue: “Do you really think nothing will have to change?” she asked.

There was a willingness in her party to approach the other parties. But the willingness of the ÖVP and SPÖ to reform was not great enough. “Bold projects” were missing. The Neos tried to bring in a “dynamism and a vision,” but often all that came back was a “tired smile.”