Austria’s conservative Chancellor Karl Nehammer announced his resignation on Saturday following the collapse of coalition talks aimed at forming a government without the far-right Freedom Party (FPO). The political shake-up comes in the wake of September’s parliamentary elections and highlights the growing influence of far-right parties in Europe.

“I will stand down as chancellor and as leader of the People’s Party in the coming days and enable an orderly transition,” Nehammer said in a video message on X, citing failed negotiations with the Social Democrats (SPO).

The talks’ failure underscores the increasing difficulty of forming stable coalitions in countries where far-right parties like the FPO are gaining prominence despite widespread reluctance from mainstream parties to partner with them.

Led by Herbert Kickl, the FPO emerged as the leading party in September’s elections with approximately 29% of the vote but has been unable to secure a coalition partner. Nehammer ruled out working with Kickl, whom he labeled a “conspiracy theorist,” while acknowledging that many within the FPO are “trustworthy.”

A day before the talks collapsed, the liberal Neos also withdrew from negotiations, citing a lack of decisive leadership from the participating parties.

Austria now faces two potential outcomes: President Alexander Van der Bellen may task Kickl with forming a government, or a snap election could be called. Both scenarios add to the uncertainty surrounding Austria’s political future.

Within Nehammer’s People’s Party (OVP), internal divisions have become evident. While Nehammer resisted partnering with the FPO, some members of the OVP favor rekindling the alliance, which governed Austria from 2017 to 2019 before collapsing in a scandal involving the FPO.

The OVP leadership is scheduled to meet on Sunday to choose Nehammer’s successor, a decision that could reshape the party’s stance toward the FPO and reflect shifting dynamics in Austrian politics.