Austria votes in watershed polls

Austrians were voting yesterday in a watershed election tipped to see conservative Sebastian Kurz, 31, become the EU's youngest leader and form an alliance with the far-right, in the bloc's latest populist test.

A rightward shift in the wealthy European Union member of 8.75 million people would be a fresh headache for Brussels as it struggles with Britain's decision to leave and the rise of nationalists in Germany, Hungary, Poland and elsewhere.

But all signs indicate that Austrians, fed up with a record influx of asylum-seekers, want to swap the gridlocked centrist rule for a more hardline government for the first time in a decade.

The People's Party (OeVP), rebranded by "whizz-kid" Kurz as a "movement", is forecast to reap more than 30 percent of the vote with pledges to go tough on migrants and easy on taxes.

The eurosceptic Freedom Party (FPOe) is battling for second place with the beleaguered Social Democrats (SPOe) of incumbent Chancellor Christian Kern.

Kurz -- who as new OeVP leader forced the snap vote in May by ending the coalition with Kern -- has yanked his party to the right and is expected to seek a coalition with the far-right.

Founded by ex-Nazis in the 1950s, the FPOe almost won the presidency last year and topped opinion polls in the midst of Europe's migrant crisis.

Then Kurz came along and stole votes with his hardline OeVP makeover, prompting FPOe chief Heinz-Christian Strache to call him an "imposter".

But Austrian media reported yesterday that both parties were already involved in behind-the-scene talks, with the OeVP putting a "generous offer" on the table.

Meanwhile, the once-mighty SPOe could be flushed into opposition after their promising campaign suffered blunders and scandals.

Open dislike between ex-railway chief Kern, 51, and Kurz also makes any new attempt at ruling together seem unlikely.