FPO have won the most votes in the recent general elections in Austria. But other parties have made plain their refusal to work with its leader Herbert Kickl. The unusual scenario reveals deep concerns about the political and ideological scenario of Austria. FPO is isolated despite its electoral triumph. Its divisive policies marked by euro- scepticism have alienated potential coalition partners. Bellen's decision is important not only for Austria but Europe too.

There is concern all over Europe over the rise of far-right parties and erosion of democratic values. Growing nationalism and anti-immigrant rhetoric pose a challenge to the core principles of European Union.

In this backdrop, Austria's rejection of a far-right government sets a precedent. It resonates all over the continent. Bellen's decision offers an alternative. It acquires significance as a wave of populism has taken hold in many European countries, but Kickl is not taking it lying down.

Terming the move as undemocratic, the FPO leader is arguing that it is a betrayal of the Austrian people who voted for his party. It plays into the broader narrative of victimhood. Populist leaders in Europe use it to drum up support for their ideologies and its propagation. The decision to keep it out of government can be used by FPO to its advantage.

It can strengthen FPO's base in the long term.. It can fuel the claim that political establishment is conspiring against the will of the people. Polarisation can deepen in Austria post the FPO donning the mantle of victimhood. More contentious elections in future can be another fallout.

Coalition building process is now on between the conservative People's Party (OVP) and Social Democrats (SPO). It is fraught with challenges owing to the ideological differences between the two. OVP leadership has made it clear that reforms are necessary for a stable government. But it is no easy task to bridge the gap between SPO' s call for wealth and inheritance taxes and OVP's conservative policies.

Inclusion of a third party may create balance. The liberal Neos may step in. It would then be Austria's first three-party coalition since its post-war independence. Its political future hangs in balance. European Union members are closely monitoring the situation in Austria. Austrian President’s decision to keep the far right out of the new government has caused some jubilisation amongst left and liberals but the move is sure to unite the far right parties in Europe. (IPA Service)