Identifier
Created
Classification
Origin
05VIENNA1484
2005-05-09 10:48:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:  

2005 - Austria's Year of Commemoration

Tags:  PREL PGOV AU 
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UNCLAS SECTION 01 OF 03 VIENNA 001484 

SIPDIS

SENSITIVE

DEPARTMENT FOR EUR/AGS

E.O. 12958: N/A
TAGS: PREL PGOV AU
SUBJECT: 2005 - Austria's Year of Commemoration


SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.

UNCLAS SECTION 01 OF 03 VIENNA 001484

SIPDIS

SENSITIVE

DEPARTMENT FOR EUR/AGS

E.O. 12958: N/A
TAGS: PREL PGOV AU
SUBJECT: 2005 - Austria's Year of Commemoration


SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.


1. (SBU) SUMMARY: In the "Jubilee Year" of 2005, Austria
is observing a number of significant anniversaries. Most
prominent are the 50th anniversary of the Austrian State
Treaty and the 60th anniversary of the reestablishment of
the Austrian Republic after the end of World War II.
Austria also celebrates the 10th anniversary of its EU
membership and looks toward its EU Presidency in the
first half of 2006. As it commemorates these events, and
shapes its strategies for the EU Presidency, Austria is
seeking confirmation of its role as hub at the center of
Europe, and as a bridge between cultures and peoples
promoting peace and stability, especially in Eastern and
Southeastern Europe. Chancellor Schuessel's center-right
coalition has made important progress on economic,
structural and administrative reform since it took office
in 2000, but still confronts the need for further
modernization. End Summary.

The State Treaty: Highlight of A Year of Commemorations
-------------- --------------


2. (SBU) As it looks back on its post-World War II
history, Austria is celebrating various anniversaries in
2005, the highlight being the 50th anniversary of the
signing of Austria's State Treaty on May 15. The State
Treaty reestablished Austria as a sovereign state after
10 years of occupation by the four Allied Powers, the
United States, the Soviet Union, Great Britain and
France. The State Treaty is one of the foundations of
Austria's modern identity and is a symbol of Austrian
freedom and independence. The State Treaty was the
result of years of tough negotiations among the four
powers and between Austria and the Soviet Union.
Austrians consider this "miracle of 1955" to be a notable
achievement of Austrian diplomacy. They see it primarily
as having spared Austria from a Germany-type division
into occupation zones and a tense existence on the front
lines of the Cold War. While the Treaty now serves
principally as an historic document, its provisions on
the status of Austria's ethnic minorities in Austria are
still relevant, constituting the fundamental guarantee of
the ethnic groups' rights.

Neutrality
--------------


3. (SBU) Austrian neutrality was a condition the Soviet
Union imposed for the conclusion of the State Treaty. A

few months following the signing of the State Treaty,
Austria passed a constitutional law declaring itself
neutral in perpetuity. Neutrality has lost some of its
relevance since the end of the Cold War and Austria's
accession to the EU and participation in NATO's
Partnership for Peace. Several provisions now allow
participation in military actions under UN or EU
mandates. However, remembrance of the horrors and
hardships of the Nazi and postwar eras has given
neutrality the aura of a nation-defining myth which large
sections of the public still cherish. As neutrals, the
Austrians were different from their (capitalist) West
German or (Communist) East German cousins. Somewhat
illogically, Austrians often credit their neutrality,
rather than their geographical and ideological closeness
to the Western alliance, with maintaining Austria's peace
and security through the Cold War.

Austria's International Identity
--------------


4. (SBU) Located in the center of Europe, Austria is a
hub for relations with the formerly Communist East. The
importance of this location increased as its Eastern
neighbors joined the EU en masse on May 1, 2004.
Austria's pre-World War I ties to Southeastern Europe as
the former center of the Habsburg Empire have imbued
Austria with a sense of mission to help promote stability
in the region. In order to foster reform in these
countries, especially the war-torn Western Balkans,
Austria strongly advocates the aspirations of the entire
region to take part in European integration and
eventually to accede to the European Union. Austria
perceives itself as having a vocation to act as a
mediator in resolving regional conflicts, such as in
Kosovo. Austria also has important economic interests in
the region. It is among the top investors in
Southeastern Europe, and its banking institutions, in
particular, have a growing role in the region.


5. (SBU) Among Austria's initiatives for closer
relations with Eastern and Southeastern Europe is its
"Regional Partnership" with Slovakia, the Czech Republic,
Slovenia, Hungary and Poland. In 2004, the Partnership
drafted a Kosovo concept paper which included proposals
for minority rights, decentralization and protection of
religious sites.

2006 EU Presidency
--------------


6. (SBU) During its EU Presidency in the first half of
2006, Austria plans to focus its efforts on the Balkan
countries. Austria is a strong advocate of beginning EU
accession negotiations with Croatia, and also plans to
promote EU memberships for Bosnia-Herzegovina, Macedonia
and Albania. Austria also wants to see Serbia-
Montenegro, including Kosovo, join the EU. Austria is
therefore thinking of preparing a Balkans conference in
2006 in cooperation with the UN - if those interested in
the region, including the U.S. and Austria's EU partners,
consider that conditions are right for progress on the
thorny status questions.

Domestic Situation
--------------


7. (SBU) Austria has a center-right government led by
Chancellor Wolfgang Schuessel of the conservative
People's Party (OVP). Schuessel concluded a coalition
with the controversial right-wing populist Freedom Party
(FPO) in 2000, and renewed this coalition in 2003
following the 2002 parliamentary elections. The
governing coalition has implemented an impressive list of
items on its reform agenda, ranging from changes in the
pension system to macroeconomic structural improvements,
tax cuts and significant privatization measures.
However, the government still has some business to
finish, including continued rightsizing in the public
sector, simplifying and streamlining the social welfare
system, further labor market reforms, and implementing
the EU's ten-year economic growth agenda, known as the
"Lisbon Program."


8. (SBU) The coalition is not stable at the moment. In
spring 2005, the Freedom Party fractured, with its
national leadership (spearheaded by the controversial
Governor of Carinthia, Joerg Haider) leaving to form a
new grouping, the "Alliance Future Austria" (BZO). The
BZO ministers have expressed their strong commitment to
continuing the coalition with Schuessel's OVP until the
next regular parliamentary elections, scheduled for fall

2006. Still, observers have noted increased instability
as a result of the FPO split, fueling widespread
speculation about the possibility of early elections in
the fall of 2005.

Shadows of the Past
--------------


9. (SBU) In the midst of this political turbulence, two
older, hard-core nationalist members of the largely
powerless Upper House of Parliament made inflammatory
comments questioning the existence of the Nazi gas
chambers and complaining of post-war "persecution" of
Nazis by the Allies. These outbursts raised a storm of
public protest from across the political spectrum.
Austria's entire political leadership, including the FPO
and BZO, joined in calls for the two deputies to resign.


10. (SBU) COMMENT: In this anniversary year, Austrians
are recalling the suffering the country both experienced
and inflicted during the Nazi era. Just one week before
the May 15 observances, at the May 8 ceremony
commemorating the 60th anniversary of the liberation of
Mauthausen concentration camp by American forces, the
clear message of the many Austrian dignitaries present
was "never forget". Austrian Cardinal Christoph
Schoenborn recalled characterized Mauthausen as a place
that became "hell on earth" for seven years. President
Fischer summoned Austrians to confront their history and
be vigilant, stressing that "looking the other way is not
the answer. The memory of evil is to be our shield
against evil." Austrians are also remembering the time
of deprivation they lived through immediately after World
War II. Austrians are honoring the determination of the
hard-working generation that rebuilt the country's
infrastructure and economy, thereby laying the foundation
of Austria's modern prosperity. However, Austrians are
still mindful of the extensive assistance they received
in this effort from the U.S., notably under the Marshall
Plan. While Austria has been neutral in a military sense
since 1955, there has been no doubt that in terms of
political freedoms and its economic system, Austria has
been firmly rooted in the West.

BROWN