Austria's centre-left Social Democrats formally agreed today to renew their often fractious coalition government with the conservatives in the face of a looming economic crisis.
In September's election, the two mainstream centre parties slumped to their worst results since World War II after their bickering in the outgoing coalition alienated voters, who turned to far-right parties at the ballot box.
But the onset of economic woes has forced them to try to form a more constructive alliance under new leaders.
"More than ever before, Austria needs a government that can react to the problems of our times with the right answers," Josef Proell, head of the centre-right People's Party, told reporters after the talks ended today.
Social Democrat leader Werner Faymann is expected to become chancellor after his party came first in the election.
Mr Proell said ministers' names would not be announced before Monday. But his conservatives appeared to have driven a hard bargain, keeping the main levers of economic power despite having come second behind Faymann's party.
Mr Proell said his party would head the finance, economy, foreign and justice ministries, although the current foreign minister, Ursula Plassnik, would leave her post.
He will be vice chancellor and could become finance or foreign minister.
A perceived imbalance in ministry allocations was one of the factors blamed for the failure of the last coalition, and analysts said it was far from clear, under heavy economic pressure, that the new alliance would be any more harmonious.
Reuters