Coalition talks have dragged on after Austria's main parties refused to work with the leader of the right-wing Freedom Party (FPÖ), Herbert Kickl, who came first in September's election with 29.2% of the vote.
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00:00Austria's Chancellor Karl Nehammer has said he'll resign in the coming days after talks
00:07on forming a new government failed for a second time.
00:10Nehammer said destructive forces in the Social Democrats had gained the upper hand and that
00:15his People's Party wouldn't agree to policies that harm the economy.
00:20Coalition talks between the People's Party, the Social Democrats and NIOS have dragged
00:24on since September.
00:26Those parties refused to work with the right-wing Freedom Party led by Herbert Kickl, who came
00:32first in the general election.
00:34New elections are the likely next step, but whoever heads Austria's next government will
00:38face the challenge of having to save between 18 and 24 billion euros, according to the
00:43EU Commission.
00:45Austria has been in recession for two years, is experiencing rising unemployment and its
00:50budget deficit is currently at 3.7% of GDP, above the EU's limit of 3%.