Austrian Government Talks Collapse: Chancellor to Resign Amid Political Turmoil

Austrian Chancellor Karl Nehammer announced his resignation following failed attempts to form a new government. Coalition discussions between the People's Party and Social Democrats reached a stalemate, with key issues including addressing a significant budget deficit. Neos party's withdrawal added to the political challenges faced by Austria.

Austrian Chancellor Karl Nehammer has announced that he will step down following a second unsuccessful attempt at forming a new government. The decision comes as talks between the conservative People's Party and the Social Democrats reached an impasse.

The discussions took a turn after the liberal Neos party unexpectedly withdrew, complicating negotiations further. Nehammer cited that "destructive forces" within the Social Democratic Party hindered progress, emphasizing the need for economic competitiveness.

Social Democratic leader Andreas Babler expressed his disappointment, highlighting the pressing issue of repairing Austria's "record deficit." With the country in recession and unemployment rising, the next government faces the daunting task of addressing an 18 to 24 billion euro savings challenge while dealing with a significant budget deficit.

(With inputs from agencies.)