Austria's president asked the Social Democrats today to form a new governing coalition, and party leader Werner Faymann said he hoped to form a broad centrist coalition by Christmas.
A similar alliance between the Social Democrats and the conservative People's Party collapsed after 18 months in power, leading to the September 28th election in which both parties lost ground and far-right parties took almost 30 per cent of the vote.
But the People's Party has named a new leader, Josef Proell (40), whose good rapport with the Social Democrats should prevent a repetition of the bickering that crippled the last government and give a new coalition a chance of success.
President Heinz Fischer told reporters after giving Mr Faymann his mandate that he wanted a cohesive government, especially in light of the global financial crisis."We will have to get a decisive government that people can rely on. Negotiations should be fair, speedy and bring in new ideas," he told party leaders.
Mr Faymann said he aimed to launch coalition talks tomorrow. But a deal is unlikely until the People's Party has met next month to elect a new executive and set out its policies.
Both the Social Democrats and People's Party suffered their worst results since 1945 in the election, falling into the 26-29 per cent range as voters punished them for feuding and on concern over the economy, inflation and immigration.
The far-right anti-immigrant Freedom Party and splinter Alliance for Austria's Future, led by former Freedom Party leader Joerg Haider, took a combined 28 per cent. But the party leaders' mutual antagonism reduces the chances of a joint hard-right role in government.