Austrian Social Democrats (SPÖ) and the Conservative People's Party ÖVP agreed to form a coalition government. Gusenbauer is to take over the chancellery from Conservative Wolfgang Schüssel, who has ruled under the coalition between his People's Party and the far-right Freedom Party for the past six years.
The members of the new government are yet to be named. The cabinet will have 20 members. The ministries of the interior, finance and foreign affairs remain with the ÖVP, whereas the SPÖ takes on defence, justice, education and social affairs.
The Social Democrats face the difficult task of renegotiating the heavily disputed Eurofighter deal to acquire military jets from the European Aeronautic Defence and Space company EADS.
