Austrian President Alexander Van der Bellen has decided to appoint Karl Nehammer, the leader of the conservative ÖVP, as formateur for a new coalition government. This happened after no parties were willing to work with Herbert Kickl of the far-right FPÖ.
The controversial party emerged as the largest party in the parliamentary elections in early October; the FPÖ won more than 29% of the votes, but no one wants to form a government with the pro-Putin politician. President Van der Bellen (Greens) has now given Nehammer the task of breaking the deadlock.
Nehammer now faces the challenge of forming a workable coalition, at least with the social democratic SPÖ. Although there are important policy differences, especially on tax reform and climate policy, their coalition is the most likely option, supplemented with support from the Greens and/or the liberal Neos. A two-party coalition of ÖVP and SPÖ has only a one-seat majority. The liberals and Greens could be effective complementary partners in this scenario.
The role of the Greens could be a balance between the centre-right and centre-left visions. Their dominance lies mainly in environmental policy and social justice, which could prove difficult in negotiations with the more traditionally oriented ÖVP.
In addition, Neos' liberals remain an attractive option, especially because of their emphasis on necessary economic reforms and progressive policies, which could be attractive to both the ÖVP and the SPÖ.
The regional elections in a few months will be crucial for the further positioning of the right-wing radical FPÖ and their possible influence on future government policy. The question is whether ÖVP leader Nehammer will succeed in forging a sustainable coalition in the coming weeks or whether Austria will face an extended period of political instability.
The regional elections will in the latter case be another test for the Austrian political parties. If Nehammer successfully breaks the deadlock, this could strengthen his ÖVP, but a failed formation could further play into the hands of the FPÖ and cause more division in Austrian politics.