Austria's conservative Chancellor Sebastian Kurz resigned on Saturday to pull his coalition government back from the brink of collapse after the junior party demanded his head because he has been placed under investigation on suspicion of corruption.

The move by Kurz, who denies wrongdoing, satisfied his coalition partner, the Greens, and came just three days before a special session of parliament in which they were preparing to back a motion of no-confidence that would have forced him out.

At the same time...