The liberal NEOS party, which pulled out of negotiations with the People’s Party (ÖVP) and the Social Democrats (SPÖ) in early January, is now expected to rejoin talks that could lead to Austria’s first three-way coalition government.

However, it remains unclear how far the ÖVP and SPÖ are willing to accommodate NEOS demands, particularly on pension reform – one of the main reasons the party withdrew from talks last month.

Internal Tensions

The decision to re-engage the NEOS is understood to have the backing of both the ÖVP and the Vienna branch of the SPÖ. However, some within the SPÖ would prefer an arrangement that stops short of a formal coalition.

Reports suggest NEOS have now been offered two ministerial positions, likely in education and foreign affairs.

The ÖVP would retain the chancellery and key ministries, including interior, defence, economy and agriculture. The SPÖ would take charge of finance, social affairs, infrastructure and women’s affairs. The justice ministry is expected to remain with the ÖVP, although it could yet be handed to NEOS instead of foreign affairs.

The education portfolio could prove a sticking point, however.

Christoph Wiederkehr, a senior NEOS figure and Vienna’s Deputy Mayor, had been tipped for the role but is now expected to lead the party’s campaign in the city’s elections in April.

FPÖ Claims ‘Betrayal of Voters’

The far-right Freedom Party (FPÖ), whose bid to form a coalition with the ÖVP collapsed earlier this month, has strongly criticised the latest developments and is calling for fresh elections.

General Secretary Michael Schnedlitz accused the ÖVP and SPÖ of “betraying voters” with what he called a “losers’ traffic light coalition.” He claimed the “clear will of the electorate” was being ignored by “the system” and warned that the new government would bring “economic decline,” “security chaos,” and “mass illegal immigration.”