Talks on forming a three-party coalition government in Austria collapsed after the smallest party NEOS withdrew from negotiations. However, the remaining two parties have confirmed their intention to continue discussions.

Austria's coalition talks were thrown into disorder when the liberal Neos party unexpectedly quit negotiations with the ruling People's Party (OVP) and Social Democrats (SPO). The move raises uncertainties about forming a government without the far-right Freedom Party (FPO),

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.

Negotiations for a new three-party government in Austria have collapsed after the Neos party withdrew, leaving Chancellor Karl Nehammer seeking alternatives.

The Neos party's abrupt withdrawal from Austrian coalition talks has caused political uncertainty, strengthening the far-right Freedom Party's position. Opinion polls show increased support for the FPO,

Representatives of the conservative Austrian People's Party (ÖVP) and the Social Democrats (SPÖ) met in the nation's chancellery for talks on Saturday after the failure of their discussions with a further party for a three-way coalition.

VIENNA (Reuters) -Talks between the two biggest centrist parties in Austria on forming a coalition government without the far-right Freedom Party (FPO) have collapsed, Chancellor Karl Nehammer said on Saturday,

Collapse underlines difficulty of forming governments in European countries where far-right on rise but parties refuse to partner with them.

Austrian Chancellor Karl Nehammer said he planned to resign in the coming days after talks between his conservative party and the Social Democrats to form a new government collapsed on Saturday, casting the nation into a political crisis.