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Austria’s liberal NEOS party announced on Friday that it has withdrawn from coalition talks with social democratic SPO and far-right OVP parties, according to local media reports.

Talks on forming a new three-party government in Austria have collapsed as the smallest of the prospective coalition partners pulled the plug on the negotiations.