Austria’s election was held on 28 September. Recall that the Social Democrats (SPÖ) and the Christian Democratic People’s Party (ÖVP) did badly at the election, losing 10 seats and 16 seats respectively. Recall also that the Liberals (FPÖ) and the populist Jorg Haider List (BZÖ) did well, gaining 14 seats each. However, the subsequent death of Jorg Haider changed the political equation. The worsening of the financial crisis in the last couple of months also had an impact on the government formation process.

Anyway, on Sunday a new government was agreed. It will return the grand coalition of the SPÖ and the ÖVP. There will be a new Chancellor. Alfred Gusenbauer from the SPÖ will be replaced by Werner Faymann also from the SPÖ.