Austria’s conservative Chancellor Karl Nehammer said Saturday he would step down in the “coming days” after breaking off coalition talks with the Social Democrats over disagreements on key issues.

The surprise move might lead to snap polls being called – or the conservatives might negotiate with the far right that won national elections in September.

Nehammer made the announcements late on Saturday in a video message and accompanying statement posted on the X platform. “After the break-off of the coalition talks I am going to do the following: I will step down both as chancellor and party chairman of the People’s Party in the coming days and enable an orderly transition,” he said.

The development comes just one day after Austria’s liberal party withdrew from three-party coalition talks to form a centrist government.

The aim had been to sideline the far-right Freedom Party (FPOe) that topped the vote.

The FPOe won 28.8 percent of the vote but has been unable to find partners to form a national government in the Alpine EU member state.

The conservative People’s Party (OeVP) came second with 26.3 percent, while the centre-left Social Democrats (SPOe) won 21.1 percent.

That led Nehammer to pursue talks with the SPOe and the liberal party NEOS to form a government to shut out the far right, but those three-way talks collapsed on Friday.

A three-party governing coalition would have been a first since 1949 in Austria, which faces a flagging economy as and a ballooning budget deficit.

Nehammer had already warned that the coalition talks, which began in October – initially without the liberals – would be an uphill task.

The OeVP has ruled the Alpine country of nine million since 1987. But it has already governed twice with the FPOe as junior partners – in 2000 and again in 2017.

While Nehammer said he was open to talks with the FPOe, he has repeatedly ruled out working with Kickl.

FPOe’s radical leader Herbert Kickl.