AUSTRIAN MEDIA HIGHLIGHTS: November 09, 2006

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: November 09, 2006


GUSENBAUER AND SCHUESSEL TO MEET AGAIN


1. SPOe boss Alfred Gusenbauer and Chancellor Wolfgang Schuessel
will meet in Parliament Friday to discuss again whether there is
still a chance for a grand coalition. In the meantime, Federal
President Heinz Fischer has indicated he is prepared to give the two
parties "one or two weeks" to come together. Otherwise, he indicated
that other options, possibly a minority government or new elections,
would have to be considered. [ORF online]

SPOe CONTEMPLATES MINORITY GOVERNMENT


2. More and more frequently, prominent Austrian Social Democrats are
publicly considering the option of forming a minority government, if
no grand coalition with the OeVP can be forged. Salzburg Provincial
Governor Gabi Burgstaller, in an interview with mass circulation
daily "Kurier," suggests establishing a minority government while
the two investigation committees (Eurofighter, banks) are at work. A
possible minority government would have to be tolerated by the
Greens and the FPOe. FPOe boss Heinz-Christian Strache, however, is
arguing for a "Swiss-style" temporary government of all parties, if
all other options fail. [Kurier, p2, Der Standard, p1, and other
media]

EU THREATENS TO ABANDON TURKISH MEMBERSHIP NEGOTIATIONS


3. The EU Commission progress report indirectly charges Turkey with
a breach of contract by refusing to show any movement on the Cyprus
issue. The Commission announced that, if Turkey does not acknowledge
Cyprus by the end of December, there will be sanctions concerning
the membership talks. [Neue Kronenzeitung, p3, Kurier, p4, and
other Austrian media]

HAMAS ANNOUNCES END OF CEASEFIRE


4. After an Israeli attack which led to 19 deaths in the town of
Beit Hanoun in the Gaza Strip, the Israeli-Palestinian conflict has
escalated further. European politicians expressed shock at Israel's
action and President Bush said he hoped such an attack "will not be
repeated." Hamas has announced revenge and is freezing negotiations
with Fatah over formation of a unified government. [Oe1 radio
morning news, Der Standard, p5]


US MIDTERM ELECTION SPECIAL


5. DEMOCRATS APPARENTLY VICTORIOUS IN SENATE AS WELL
After their victory in the House of Representatives, the Democrats
may have gained a majority in the Senate as well. In a tight race,
Democrat Jim Webb of Virginia declared victory over Republican
incumbent George Allen, who has not yet conceded defeat. It could
take up to a week to count all the votes, according to reports, and
a recount could further prolong the procedure. Virginia would give
the Democrats 49 seats in the Senate of 100 altogether. With the
two seats won by Independents who say they will vote with them, the
Democrats would have a majority for the first time since 1994. [ORF
online]


6. ELECTION DEFEAT: BUSH "SACRIFICES" RUMSFELD
As a first consequence of the election debacle, US President Bush
has decided to replace his controversial Secretary of Defense,
Donald Rumsfeld. At a press conference, Bush said he and Rumsfeld
agreed that "the Pentagon needs new leadership." Former CIA boss
Robert Gates will become the next Secretary of Defense; he has to be
confirmed by the Senate. The Iraq strategy of the Bush
administration was a primary reason for the massive defeat, all
media agree; Bush's decision to "sacrifice" Rumsfeld, as several
media headline the story, is seen as an acknowledgement of this and
as a first signal for a change of course in the administration's
Iraq policy. [Die Presse, p1, and other Austrian media]


7. ANALYSIS OF VARIOUS AUSTRIAN DAILIES

"Neue Kronenzeitung"
The mass circulation tabloid focuses on the resignation of Secretary
of Defense Donald Rumsfeld and speculates on possible future changes
in the presidential staff, referring to Secretary of State
Condoleezza Rice as a "not uncontroversial" cabinet member. On the
Democratic side, the future Speaker of the House, Nancy Pelosi,
according to the tabloid, is aiming at establishing a closer working
agreement between Democrats and Republicans to reunite "a deeply
divided country that is exhausted from the Iraq war."

"Kurier"

The mass circulation daily also concentrates on Rumsfeld's
resignation as the "first dramatic signal" that this midterm
election has fundamentally changed the political landscape of the
US. Of newly-nominated Secretary of Defense Robert Gates, CIA boss
under George Bush Sr., the daily writes that he, "in contrast to
Rumsfeld, is not an ideologue and cultivates good contacts with
Democrats." In the future, Bush could encounter resistance not just
from the Democrats, but also from within his own party, the daily
warns: Because he has partly lost the religious right, his die-hard
supporters, Bush now has to move closer to the political center.
Immigration, at least, should not be difficult for the President -
he already holds a more liberal position than his party's
hardliners, says "Kurier."

"Kleine Zeitung"
The mass circulation Styrian daily analyzes the landslide victory of
California's Governor Arnold Schwarzenegger, who won more votes than
any other governor up for re-election. One year ago, such a victory
seemed extremely unlikely - Schwarzenegger had suffered a serious
defeat in a popular referendum with a conservative austerity
package. Since then, the Governor has become more moderate and
cooperated closely with the Democrats who have a majority in the
California Legislature. He distanced himself from fellow Republican
George Bush on the Iraq war and scored points on immigration and
environmental issues.


"Der Standard"
Foreign affairs writer for independent daily "Der Standard"
Christoph Winder analyzes the elction results: "The Republicans'
old recipes for success didn't work. The Democrats on Tuesday
reaped the grapes of wrath but this alone will not suffice. They
will have to formulate a political plan for 2008. They have so far
failed to come up with brilliant ideas on Iraq or on most of the
domestic issues."
The daily also analyzes the chances for a change of course in Iraq
as a result of the US midterm elections. Foreign editor Gudrun
Harrer notes that the Democrats also lack an acceptable exit
strategy. Immediate withdrawal is no realistic alternative, since
this would mean giving up US interests in the region. Attention is
now focused on the bipartisan Iraq Study Group headed by Republican
James Baker and Democrat Lee Hamilton, which is expected to
recommend a gradual withdrawal. The question is how to prepare Iraq
for that. Some argue in favor of a well-ordered division of the
country, but the question is how to get a grip on security. While it
is clear that Iraq will not become what the Republican war
strategists envisioned in 2003, it is unclear what will happen there
instead - and what this will mean for US interests.

"Die Presse"
The centrist daily sees the election result as a "vote on George W.
Bush and the Iraq war," and was acknowledged as such by the
President. The bipartisan study group headed by former Secretary of
State James Baker could present its findings in a few weeks. The
daily refers to speculations that the group intends to recommend
direct talks with Syria and Iran, which would constitute a total
turnaround from the foreign policy as practiced by the Bush
administration so far. The democrats are meanwhile debating whether
or not to initiate impeachment procedures against the President.
What is certain is that an antagonistic Congress would turn the
President into a "lame duck" for the remainder of his term in
office.

"Wiener Zeitung"
The semi-official daily deals with the European assessment of the US
midterm election results. Italy's Prime Minister Romano Prodi is
convinced Bush lost the election because of the Iraq war, while the
governing Spanish socialists welcomed the election victory of the
Democrats and expressed the hope that "this will help change the US
foreign policy course." A gradual US withdrawal from Iraq is also
expected by prominent German foreign policy expert Hans-Ulrich Klose
from the SPD. French parliamentarian Frangois Fillon, a confidant of
Interior Minister Nicolas Sarkozy, said he was "glad" that American
foreign policy was criticized by the American people, "because it is
bad." John McDonnell, a leading British Labour politician, pointed
out that the election results not only damaged Bush, but also served
to isolate Prime Minister Tony Blair in the international community.
In Austria, SPOe spokesman Josef Cap characterizes the election
results as "positive," and "one in the eye" for President Bush and
the "insensitive attitude" demonstrated by his party in view of the
social problems in the US.

"Salzburger Nachrichten"
According to the independent daily, the lesson of this election for
Republicans is that it is dangerous to rely entirely on its
conservative base and neglect the political center. The Democrats,
too, will have to "govern from the center" - many newly-elected
Democrats are moderate and closer to the Republicans than to their
own party. Now, the Democrats have to look towards the future,
writes deputy chief editor for "Salzburger Nachrichten" Viktor
Hermann: "For the next two years, the Democrats have the chance to
show Americans what they can do. They can initiate positive
legislation in Congress on the political, economic, and social
levels. Some of these initiatives will fall victim to parliamentary
trade-offs, some to the presidential veto, but it will still be a
chance to present to the American voters an efficient political
party that can claim the presidency two years from now."

"Vsterreich"
The mass circulation tabloid analyzes the overwhelming victory of
Hillary Clinton in the New York Senate race. This triumph could
foreshadow her future: Clinton wants to decide in the coming month
whether to run for President in 2008. Her recent victory could be an
excellent starting point for being the first woman to capture the
White House, writes the tabloid.
Phillips