Austria swears in a new government, ending the five -month -old political crisis – politico

With this alliance, the centrist parties prevented the far-right pro-Russian freedom (FPö) party from coming to power despite the fact that it wins the most votes during the elections.

The initial negotiations between ÖVP, SPö and Neos tried to form a government and stop the extreme right. However, these talks collapsed in early January for deep disagreements on fiscal policy.

Consequently, the far -right chief, Herbert Kickl, received a mandate from the president to form a government.

Kickl hoped to govern with the ÖVP, but the conservatives had little appetite to be a junior partner of the FPö, as a request for a reduction in tax reductions, an expansion of Austria’s debt and restrictions on the EU’s fiscal policy faced with the pro-European policies of the ÖVP.

These talks broke down in mid-February, forcing the conservative party leader to return to the original triple formula.

The resulting coalition agreement implies a budget compromise which attempts to balance budgetary consolidation with investment in social well-being and economic growth.