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Austria’s liberal NEOS party announced on Friday that it has withdrawn from coalition talks with social democratic SPO and far-right OVP parties, according to local media reports.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 to form a coalition government led by Austria's far-right Freedom Party (FPO) will begin on Friday, the party said on Thursday, as thousands protested in Vienna against the prospect of the country's first FPO-led government.

Austria's far-right Freedom Party (FPO), which won September's parliamentary election with 29% of the vote, is due to start coalition talks with the conservative People's Party (OVP) this week aimed at creating the country's first FPO-led government.