Austrian chancellor to resign after talks to form new government fail

Austrian Chancellor Karl Nehammer has announced plans to resign in the coming days after coalition talks between his conservative party and the Social Democrats to form a new government collapsed on Saturday.

In a video message, Nehammer said he would also resign as leader of the Austrian People's Party (ÖVP).

His announcement came shortly after the party broke off coalition talks with the Social Democrats (SPÖ).

"It is evident that the destructive forces within the SPÖ have gained the upper hand," said Nehammer, confirming the end of these talks as well.

He underlined that the ÖVP would not agree to any programme that is hostile to the economy and performance.

At the same time, Nehammer made it clear that he was still not prepared to hold coalition talks with the far-right FPÖ under Herbert Kickl.

"It is my deep conviction that radicals do not offer a solution to a single problem," said Nehammer.

However, his party's business wing favours a coalition with the FPÖ, which won September's parliamentary elections, over the SPÖ.

Nehammer's announcement came just hours after the ÖVP and SPÖ began discussions over forming a government.

Their brief talks began a day after the liberal NEOS party's withdrawal from weeks-long coalition talks with the ÖVP and the SPÖ over what would have been a historic three-way coalition.