Austria's new three-party coalition government takes office

Monday 03 March 2025 - 16:09

Austria's newly formed three-party coalition government took office on Monday, following a five-month wait for a new administration. Christian Stocker, who has replaced Karl Nehammer, assumes the role of Chancellor at the helm of this coalition, which includes the Austrian People’s Party (ÖVP), the Social Democrats (SPÖ), and the liberal Neos.

This government faces significant challenges, including rising unemployment, economic recession, and a strained budget. After prolonged negotiations, a 200-page coalition agreement was finalized, setting the stage for new asylum rules in Austria, which has a population of 9 million. The coalition agreement marks the longest negotiations in Austria since World War II.

The People’s Party will lead the interior and defense ministries, while the Social Democrats will oversee finance and justice. The Neos will take responsibility for foreign affairs. Despite their agreement, the three parties must continue to address numerous policy details, which could lead to internal tensions.

The formation of the coalition came after a failed initial attempt in January, which saw the resignation of Chancellor Nehammer following his refusal to work with the far-right Freedom Party. Stocker, the new leader of the People’s Party, subsequently led the negotiations, which also collapsed in February due to disagreements with Freedom Party leader Herbert Kickl.

Stocker, 64, becomes Chancellor despite not initially running for the position in the September elections. He has no previous experience in a national government. Andreas Babler, leader of the Social Democrats, will serve as Vice Chancellor, while Beate Meinl-Reisinger of the Neos assumes the role of foreign minister, succeeding Alexander Schallenberg, who briefly served as interim Chancellor.