Austria’s centre-right People’s Party, centre-left Social Democrats and liberal Neos announced an agreement to form a three-party coalition, setting a path out of the country’s longest postwar period without a government. The deal excluded the far-right Freedom Party even though it won the largest share of votes in the September 2024 election.
People’s Party leader Christian Stocker presented the programme alongside Social Democratic leader Andreas Babler and Neos leader Beate Meinl-Reisinger. Stocker described the talks as possibly the most difficult coalition negotiations in Austria’s history and framed compromise as essential after five months of political uncertainty.
The prospective cabinet would be Austria’s first three-party coalition since the 1940s. It was expected to enter office the following week if each party approved the agreement. Neos faced a particularly important internal test: two-thirds of its lawmakers needed to endorse the deal at a party gathering scheduled for Sunday. The party had received about 9% of the election vote and would be the coalition’s junior member.
The Freedom Party finished first in September with 28.8% of the vote but was unable to secure a governing partner. Its effort to form a coalition with the People’s Party collapsed earlier in February. Freedom Party leader Herbert Kickl denounced the centrist arrangement and demanded a new election, calling the proposed government a coalition of parties that had lost ground.
The coalition programme combined policies drawn from different parts of the political spectrum. To ease pressure from inflation, the parties proposed measures including a pause on rent increases. On migration, they promised tighter rules for family reunification and emphasized integration requirements from the beginning of a newcomer’s time in Austria. They also proposed prohibiting girls under 14 from wearing the hijab.
Economic management presented an immediate challenge. Austria’s weak economy and budget deficit risked conflict with European Union fiscal rules. The partners proposed measures that included new taxes on the country’s largest banks, but their differing priorities meant that turning a negotiated programme into consistent policy would require continued compromise.
The agreement followed an earlier failed attempt by the same three parties to negotiate a coalition after the election. Beyond their policy differences, they shared opposition to making Kickl chancellor. That common position helped reopen talks but did not by itself resolve the practical tensions facing the alliance. Final party approvals therefore remained necessary before the proposed government could take office, making the announcement a decisive political breakthrough rather than the last procedural step. The outcome also showed that winning the most votes did not guarantee the Freedom Party a viable parliamentary majority.
