Austrian Finance Minister Marterbauer to Replace Babler as SPÖ Leader in Early 2027

From Vienna — Florian Bayer

Austrian Finance Minister Markus Marterbauer is set to replace Andreas Babler at the helm of the country's Social Democratic Party (SPÖ). Despite his austerity measures, he remains popular.

Just days ago, he denied any impending change, but events took a different turn: Austria's Finance Minister Markus Marterbauer is expected to succeed the luckless Andreas Babler in early 2027 — initially as Vice Chancellor, and later likely as party leader. Until then, Babler will remain at the top, flanked by two co-chairs appointed to support him. At Marterbauer's request, Babler is also expected to retain his ministerial portfolio for Media, Sports, and Housing.

This solution was reached on Sunday evening after hours of deliberation. Babler, who was controversial from the start and decidedly left-wing, came under increasing pressure due to poor polling numbers. Surveys now show the once-establishment Social Democrats at just 15 percent. While federal elections are not scheduled until 2029, two critical state elections in Upper Austria and Tyrol are looming next year. The current reshuffle was ultimately triggered by media manager Gerhard Zeiler, who offered himself as a candidate for the SPÖ leadership in an interview, sparking a renewed debate over leadership. However, the 71-year-old Zeiler took himself out of the running with his uncoordinated advance.

Now, Marterbauer is expected to turn things around. There is, however, a major caveat: the 61-year-old is currently undergoing cancer treatment. While his illness has not visibly affected his work as Finance Minister — no easy task in times of economic crisis — he had previously ruled out a move to the party leadership, citing his recovery.

From a strategic perspective, the change makes sense: Marterbauer is regarded as one of the most competent figures in the federal government. The economist conducted research in Vienna and Toronto before becoming chief economist of the Vienna Chamber of Labour in 2011. In 2025, Babler appointed him as the first SPÖ Finance Minister in 25 years. Marterbauer has been a member of the SPÖ for over 40 years and is a self-proclaimed Keynesian, for whom social justice is a core concern. He advocates for wealth and inheritance taxes, though these did not make it into the government's programme with the conservative ÖVP and the liberal Neos.

Marterbauer's core concern is social justice. He advocates for wealth and inheritance taxes.

The Tax Promise He Broke

According to polls, the affable Marterbauer is the most popular member of the government — despite the austerity measures he is currently forced to implement and despite failed attempts to combat inflation. A reduction in VAT on basic food items barely reached consumers, nor did the cap on fuel profit margins. He broke his promise not to introduce new taxes with the new parcel tax on online retailers. The tax is intended to help revive brick-and-mortar retail, though experts are sceptical. Marterbauer appealed to retailers to absorb the levy themselves, but this has evidently not worked.

Will the Social Democrats finally find peace? Probably not. The SPÖ urgently needs to discuss its positions, rather than just its leadership. Marterbauer sees this too: whenever he says during appearances that the ongoing personnel debate is what hinders the SPÖ most, he receives "thunderous applause."

Marterbauer may be competent and popular, but he will not be able to save the party alone. Continuing the government's work is nonetheless firmly planned, despite all the jeers from the far-right FPÖ and the tabloid media.

Related articles:

• SPÖ leader's withdrawal: Too little delivered — Commentary by Florian Bayer
• AfD visit to Austria: Lessons in seizing power — By Florian Bayer
• Prison system in Austria: Deadly stabbings behind bars — By Florian Bayer