Far right is likely to lead Austria’s next government

Significance

These come after talks between the OVP, the Social Democrats (SPO) and New Austria (NEOS) collapsed, resulting in Karl Nehammer’s resignation as OVP leader and chancellor. Nehammer’s departure opens the door for an FPO-OVP government with FPO leader Herbert Kickl as chancellor.

Impacts

• Conflict with the EU is likely if Kickl becomes the next chancellor.
• Given Kickl’s Russian-friendly views, Austria’s allies will be more cautious about sharing sensitive information with Vienna.
• Germany’s economic downturn will ensure that Austrian GDP growth remains sluggish over the next year.