Markus Marterbauer becomes SPÖ leader: competent and popular

A few days ago he had denied a change, but things turned out differently: Austria's Finance Minister Markus Marterbauer is scheduled to replace the hapless Andreas Babler at the beginning of 2027. Initially as Vice Chancellor, later probably also as party leader. Until then, Babler will remain at the top, flanked by two co-party leaders who will be at his side. At Marterbauer's request, Babler should remain Minister for Media, Sport and Housing.

This is the solution that was found on Sunday evening after hours of consultation. Controversial from the start, the decidedly left-wing Babler came under increasing pressure due to poor poll numbers. The surveys of the once state-supporting Social Democrats only show 15 percent. The federal government will not hold regular elections until 2029, but in a year there will be two delicate state elections in Upper Austria and Tyrol. The current castling was finally triggered by the media manager Gerhard Zeiler, who offered to represent the SPÖ leadership in an interview and thus caused a new leadership debate. However, with his uncoordinated advance, the 71-year-old Zeiler took himself out of the race.

Now Marterbauer should take care of it. However, there is one big but: the 61-year-old is currently undergoing cancer treatment. Marterbauer's illness has so far had no noticeable impact on his work as finance minister, which is no easy task in times of economic crisis. However, he has so far ruled out a change to the party leadership, citing his recovery.

From a strategic perspective, the change makes perfect sense: Marterbauer is considered one of the most competent people in the federal government. The economist conducted research in Vienna and Toronto, among other places, before becoming chief economist at the Vienna Chamber of Labor in 2011. In 2025, Babler made him the first SPÖ finance minister in 25 years. Marterbauer has been an SPÖ member for over 40 years and is an avowed Keynesian for whom social justice is a core concern. He advocates wealth and inheritance taxes, but these did not make it into the government program with the conservative ÖVP and the liberal Neos.

According to surveys, the likeable Marterbauer is the most popular member of the government. Despite the austerity measures he currently has to take. And despite the failed attempts to combat inflation, a reduction in VAT on basic foodstuffs was hardly received by consumers, nor was limiting fuel profit margins. He broke his promise not to introduce any new taxes with the new parcel tax on online retailers. It is intended to help stimulate stationary retail, although experts doubt this. Marterbauer appealed to retailers to pay the levy themselves, but that doesn't seem to be working.

Will the Social Democrats finally calm down? Probably not. The SPÖ urgently needs to talk about its positions, instead of just heads. Marterbauer also sees it that way: Whenever he says during appearances that the ongoing personnel discussion is hindering the SPÖ the most, there is “thunderous applause”.

Although Marterbauer is competent and popular, he will not be able to save the party alone. In any case, continued government work is definitely planned, despite all the boos from the right-wing radical FPÖ and the tabloid media.