Mr. Kurz and nine others are under investigation after raids at a number of locations, including the chancellery, linked to his conservative ÖVP People’s Party. He denies the accusations that he used public money and manipulated polls to ensure positive coverage in a tabloid newspaper, BBC reports.
The allegations brought his coalition government to the brink of collapse after its junior partner, the Greens, demanded his resignation, saying Mr. Kurz was no longer fit to be chancellor.
“What’s required now is stability. To resolve the impasse I want to step aside to prevent chaos,” Mr. Kurz said as he announced his resignation. He said he plans to remain the leader of the ÖVP and to lead its parliamentary group. “First and foremost, however, I will of course use the opportunity to disprove the allegations against me,” he added.