Austria's fragile coalition reshapes politics as SPO struggles to regain ground
Austria's political landscape has shifted significantly since the September 2024 election. The right-wing FPO emerged as the strongest party with 28.8 percent of the vote, narrowly ahead of the conservative OVP at 26.3 percent. To block an FPO-led government, the Social Democrats (SPO) formed an unusual coalition with the OVP and the liberal Neos in March 2025.
The election results left the SPO in third place with 21.1 percent, while Neos secured 9.1 percent. Since then, the Social Democrats have seen further declines in polling, now falling below 20 percent support.
The coalition agreement, finalised in early 2025, highlighted early tensions over fiscal policy. Neos leader Beate Meinl-Reisinger made clear that their governing programme would reject inheritance tax—a key SPO proposal—signalling compromise as a defining feature of the partnership.
At a recent party conference, SPO leader Walter Babler took direct aim at FPO chairman Herbert Kickl. His speech also drew attention for an unexpected reference: Babler named former US President Donald Trump as his political role model.
The coalition now governs with the SPO as junior partner, balancing competing priorities between its left-leaning policies and the centre-right positions of the OVP and Neos. The agreement to exclude inheritance tax marks one of the first concrete outcomes of this collaboration. Meanwhile, the FPO remains the largest single party in opposition, maintaining its influence in Austrian politics.
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