Austria's Coalition Dynamics: Understanding The Majority Rule

Austria's political landscape has been characterised by the competition between multiple parties, resulting in the formation of various coalitions. In January 2020, a coalition between the conservative Austrian People's Party (ÖVP) and the Greens was established, marking the Greens' first entry into government. However, this coalition faced challenges due to issues such as the COVID-19 pandemic, high inflation, and the Russian war in Ukraine. Subsequently, the far-right Freedom Party of Austria (FPÖ) gained traction, leveraging anti-immigration sentiment and opposition to climate change policies. As of 2024, the FPÖ has emerged as the strongest party in parliamentary elections, but the complexities of forming a coalition persist. The ÖVP has expressed willingness to collaborate with the FPÖ but has rejected the idea of FPÖ leader Herbert Kickl assuming the chancellorship, creating a stalemate in the formation of a new government.

The coalition between the Austrian People's Party (ÖVP) and the Greens

The ÖVP is a conservative/centre-right party with loose ties to the Catholic Church. It has traditionally found support from farmers, business owners, and lay Catholic groups, with strongholds in rural regions. On the other hand, the Greens are a party focusing on environmental and social justice issues as part of the worldwide Green movement. They attract left-liberal intellectuals and younger voters.

The ÖVP-Green coalition came about as a result of the ÖVP's gains and the FPÖ's losses in the 2019 snap elections. The coalition was also influenced by the rise of newer parties like the Greens and NEOS, which disrupted the previous pattern of two-party dominance in Austrian politics. The ÖVP-Green coalition faced challenges such as high inflation and rising living costs, which contributed to a decline in their support in subsequent state elections.

In October 2021, the coalition was rocked by a corruption scandal involving Chancellor Kurz, which led to his resignation and the appointment of Foreign Minister Alexander Schallenberg as the new chancellor. However, Kurz remained influential and was soon elected as the faction leader of the ÖVP in the National Council. Schallenberg also resigned shortly after, and Interior Minister Karl Nehammer was sworn in as the new chancellor in December 2021.

The ÖVP-Green government implemented measures to address the rising cost of living, such as a six billion euro package in 2022 to cushion the blow to households. However, these measures were also criticised for further increasing inflation. The government also faced strong opposition to its mandatory vaccination law, which eventually led to its repeal without enforcement.

In early 2023, the coalition government reformed the voting law, introducing an early voting period and centralising the counting of absentee and mail-in ballots. The ÖVP-Green government aimed to finish its term, and the next election was held in September 2024, in which the far-right Freedom Party (FPÖ) emerged as the winner. The ÖVP-Green coalition lost a significant number of seats, and subsequent coalition talks between centrist parties failed to include the FPÖ, leading to a period of disarray in Austrian politics.

The Freedom Party of Austria (FPÖ)

The FPÖ was founded by Anton Reinthaller, a former Nazi functionary and SS officer, and initially did not advocate far-right policies, presenting itself as a centrist party. It was long the third-largest party in Austria and had modest support. Under the leadership of Norbert Steger in the early 1980s, the party sought to style itself as a moderate centrist liberal party.

In 1986, Jörg Haider became the leader of the FPÖ, and the party began an ideological turn towards right-wing populism. This resulted in a strong surge in electoral support, but also led to the Social Democratic Party of Austria (SPÖ) breaking ties. In the 1999 election, the FPÖ won 26.9% of the vote, becoming the second-most popular party. The FPÖ and the conservative Austrian People's Party (ÖVP) formed a coalition government, with the ÖVP retaining the office of chancellor. However, the FPÖ soon lost most of its popularity, falling to 10% in the 2002 election.

In 2005, internal tensions led Haider and much of the party leadership to leave the FPÖ and form the Alliance for the Future of Austria (BZÖ). Heinz-Christian Strache then became the leader of the FPÖ, and the party gradually regained its popularity, peaking at 26.0% in the 2017 election. The FPÖ once again became the junior partner in a coalition government with the ÖVP. In 2019, the Ibiza affair led to the collapse of this government and the resignation of Strache. In the subsequent snap election, the FPÖ's support dropped to 16.2%.

In 2021, Norbert Hofer resigned as leader of the FPÖ and was replaced by Herbert Kickl, whose dismissal as interior minister had caused the collapse of the ÖVP-FPÖ government in 2019. Under Kickl's leadership, the party has embraced increasingly radical and uncompromising positions, including the concept of "remigration" in immigration policy.

In the 2024 Austrian legislative election, the FPÖ placed first, winning 28.8% of the vote and achieving the best result in its history. This was the first time a far-right party won the most seats in a legislative election in Austria after World War II. However, due to the refusal of other major parties to enter a coalition with the FPÖ led by Kickl, the party has been locked out of government. As of January 2025, coalition talks are ongoing between the ÖVP and the SPÖ, with the possibility of a three-party coalition also being explored.

The Social Democratic Party of Austria (SPÖ)

The SPÖ has played a significant role in Austrian politics since its inception. At the outset of World War I, the party was the strongest in parliament, and in 1918, its leader, Karl Renner, became chancellor of the First Republic. The party lost power in 1920 but retained a strong base of support in Vienna. In the interwar period, the SPÖ, maintaining its distinct character in the face of German social democracy and Soviet communism, envisioned a new international coalition of socialist currents. However, this attempt did not succeed.

In the 1930s, the SPÖ was the most established of the European social democratic parties, with about 15% of Austrians belonging to an association linked to the party. By 1929, it had 720,000 members. The party was particularly dominant among the working class but struggled to compete with conservatives in rural areas and small towns. The economic crisis of the 1930s weakened the SPÖ, and its membership declined to 650,000 by 1930.

From 1919 to 1934, the Social Democrats continuously controlled the Vienna municipality, which became known as "Red Vienna." During this time, the municipality implemented ambitious policies, including a vast programme of constructing workers' housing, the introduction of free medical care, and new income and luxury taxes. Culture was also emphasised, with the city hosting many internationally renowned intellectuals and artists.

In 1934, the SPÖ was banned under the Austrofascist dictatorship, and its members were heavily persecuted. The party was reconstituted in 1945 as the Socialist Party of Austria, led by Adolf Schärf, and entered the government of the Second Republic as part of a grand coalition with the Austrian People's Party (ÖVP) until 1966. Renner became the Republic's first president.

From 1971 to 1983, under Bruno Kreisky, the SPÖ was the sole governing party. For the following three years, it ruled in coalition with the Freedom Party of Austria (FPÖ). Then, up until 2000, the SPÖ was again part of a grand coalition with the ÖVP, with Franz Vranitzky as chancellor until 1997. In 1991, the party reverted to including "Democratic" in its name, becoming the Social Democratic Party of Austria.

During the grand coalition period, the Proporz system, where important government posts were shared between members of the two main parties, evoked rising discontent. This discontent contributed to the growing popularity of the FPÖ, which came second to the SPÖ in the 1999 elections. In 2000, the FPÖ and ÖVP formed a right-wing coalition, displacing the SPÖ from government.

In recent years, the SPÖ has continued to be a significant force in Austrian politics. In 2020, the party received almost 50% of the votes in regional elections in the State of Burgenland, allowing Hans Peter Doskozil to govern without a junior coalition partner. However, in the 2024 legislative elections, the SPÖ won just 21.1%, marking its worst result ever in the National Council. Despite this setback, the SPÖ remains a key player in Austrian politics, currently serving as the primary opposition to the ÖVP governments.

The NEOS party

NEOS, or NEOS – The New Austria and Liberal Forum, is a liberal political party in Austria. It was founded in 2012 as NEOS – The New Austria, merging with the Liberal Forum in 2014 to become NEOS – The New Austria and Liberal Forum.

The party is led by chairwoman and parliamentary leader Beate Meinl-Reisinger, who was elected with 94.8% of the votes in 2018. NEOS is a member of the Alliance of Liberals and Democrats for Europe, and its two MEPs sit with the Renew Europe group in the European Parliament.

NEOS is represented in six of Austria's nine Landtage and has been a coalition partner in the Vienna state and city government with the SPÖ since 2020. From 2018 to 2023, NEOS was also part of the state government in Salzburg, together with the ÖVP and the Greens.

In the 2019 legislative election, NEOS won 8.1% of the vote, an increase of 2.8 percentage points from the 2017 election. This resulted in the party gaining five additional seats in the National Council, for a total of 15 seats.

NEOS's ideology and policies are centred around four key areas: sustainability, relief, openness, and education. The party describes itself as a democratic movement committed to "a political culture of respect" and aims to bring citizens back into the political process. It advocates for government accountability, modern education, entrepreneurship, democratic participation, and transparency.

NEOS's success can be attributed to its innovative methodological approaches, combining state-of-the-art advertising and marketing campaigning with creative uses of technology. The party's positive style of political communication, which contrasts the common style of harsh attacks in Austrian politics, has also been noted as a factor in its rise.

NEOS's distinct political agenda transcends traditional ideological cleavages, with a hands-on, scientifically-founded approach oriented towards "good governance". The party's platform resembles elements of liberal and centrist policies, filling a gap left by other Austrian parties.

NEOS's success in the challenging and conservative political environment of Austria has made it an interesting example for parties and citizens seeking to reform political deadlocks in European countries.

The Communist Party of Austria (KPÖ)

Historically, the KPÖ has had a complex and controversial trajectory. It was banned between 1933 and 1945 under both the Austrofascist regime and the Nazi German administration, during which it played a significant role in the Austrian resistance, fighting alongside former political enemies. After World War II, the KPÖ gained national importance and was represented in the provisional government, but its influence gradually declined. It has not had representation in the National Council (Austria's federal parliament) since 1959.

In recent years, the KPÖ has experienced a revival, particularly in the state of Styria and its capital, Graz. In the 2021 Graz local council elections, the KPÖ won 20.75% of the votes, and Elke Kahr, a member of the party, became the city's mayor. This success has been attributed to the party's focus on housing as a political issue and its practical support services for tenants. In the 2023 Salzburg state election, the KPÖ won 11.7% of the vote and secured four seats in the state parliament, marking its best result in Salzburg since 1945.

The KPÖ's platform includes a range of social and economic policies. Since 1998, its elected officials have observed a salary cap, donating any excess amount to people in need. The party opposes NATO and the European Union, and it is critical of globalization. It advocates for a socialist alternative to capitalism while recognizing the need to distance itself from the negative experiences of actually existing socialist countries.

While the KPÖ has faced accusations of being wedded to Stalinism and not sufficiently addressing its historical legacy, it has actively engaged in reappraising its past. It has initiated a critical reorientation, published historiographical analyses, and rehabilitated Austrian victims of Stalin's terror. The party's current focus is on combining radical-democratic reforms with a long-term vision to move beyond capitalism.

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