Vienna: Three Austrian political parties have successfully agreed to form a coalition government, notably excluding the far-right Freedom Party of Austria (FPO), despite its recent victory in the September 29 parliamentary elections. The coalition will consist of the Austrian People’s Party (OVP), the Social Democratic Party of Austria (SPO), and the liberal Neos party. This marks the first time Austria will have a three-party coalition government, colloquially referred to as the “Candy Coalition” due to the parties’ representative colors of turquoise, red, and pink.

According to Anadolu Agency, Austrian Chancellor Karl Nehammer of the OVP announced the progress at a press conference held on Monday evening in Vienna. “I can inform you today that we have completed the exploratory phase and are formally entering into government negotiations with the SPO and Neos,” Nehammer stated. The chancellor emphasized that these negotiations would delve into various detailed areas, with the final outcome still undecided.

T
he exclusion of the FPO, despite its 29% vote share in the elections, was a collective decision by the three parties involved, leading President Alexander Van der Bellen to grant the mandate to Chancellor Nehammer of the center-right OVP. This decision underlines a focus on forming a government based on stability and reason from the political center.

Nehammer reiterated in an interview with public broadcaster ORF the importance of creating a government program characterized by prudent financial management, especially amidst Austria’s ongoing economic challenges. He stressed the need to examine spending closely and utilize funds efficiently.

Economic data from the Republic of Austria and Statistik Austria revealed that the country’s economy has contracted in the first half of the year, defying economists’ expectations. Both the Austrian Institute of Economic Research (Wifo) and the Institute for Advanced Studies (IHS) predict a further decline in economic output for 2024, marking the first consecutive annua
l contraction since 1950.