Austria's coalition talks between the ÖVP, SPÖ, and Neos are facing significant challenges, particularly around economic and tax policies.

The parties are struggling to find common ground, with the SPÖ pushing for new tax revenues to address budget deficits, while the ÖVP and Neos prefer spending cuts.

Recent tensions have been exacerbated by disagreements over media policy and civil servant pay raises, which have left the Neos feeling sidelined.

Despite these issues, ÖVP leader Karl Nehammer remains optimistic about forming a coalition, though he has warned of a potential breakdown in negotiations if consensus isn't reached by December 12. The outcome of these talks is crucial, as it will determine the future direction of Austria's government.