Austria's coalition talks between the ÖVP and FPÖ have hit a major impasse over ministerial positions.

The FPÖ demands control of the Finance and Interior Ministries, citing the need for budget reforms and stricter asylum policies.

The ÖVP, however, fears risks to Austria's sovereignty and EU relations if the FPÖ takes over these key roles.

Both parties deny rumors of a breakdown in negotiations but admit to significant tensions.

FPÖ leader Herbert Kickl is set to meet President Alexander Van der Bellen to discuss the situation, while ÖVP leader Christian Stocker has also sought presidential counsel.

The outcome of these talks could determine whether Austria faces new elections or a fragile coalition.