The party was in monthslong talks with the Social Democrats and Chancellor Karl Nehammer's conservative People's Party. The collapse of the talks give hope to the far right FPÖ, which came first in last year's election.

Austria’s liberal NEOS party announced on Friday that it has withdrawn from coalition talks with social democratic SPO and far-right OVP parties, according to local media reports.

Following the failure of talks on a three-way coalition in Austria, the conservative Austrian People's Party (ÖVP) and the Social Democrats (SPÖ) want to continue one-on-one coalition talks. Austrian President Alexander Van der Bellen said Friday that both parties have announced their intent to talk about a grand coalition.