Sebastian Kurz, Austrian Foreign Minister and leader of the conservative Austrian People’s Party (OeVP) speaks at the party's election event.

Thomas Kronsteiner | Getty Images

Sebastian Kurz, Austrian Foreign Minister and leader of the conservative Austrian People’s Party (OeVP) speaks at the party’s election event.

“The strong performance of FPO is likely to bring a tough stance on migration to the European debate,” Barclays said in a research note Monday.

Bergsen, from the Economist Intelligence Unit, told CNBC: “The coalition is likely to push immigration and integration policy further to the right,” adding that Kurz will actively push for strengthening Europe’s outer borders and screening asylum seekers outside the European Union.

“This is likely to lead to more tensions with other EU members and Austria is likely to move closer to the Visegrad 4 states (Czech Republic, Hungary, Poland and Slovakia) within the context of the EU,” Bergsen said.

“However, EU membership is not likely to be questioned; Mr Kurz makes a point of doing his announcements in front of both an Austrian and EU flag.”

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