AUSTRIAN MEDIA HIGHLIGHTS: May 04, 2007

UNCLAS VIENNA 001156

SIPDIS

SIPDIS

DEPT FOR EUR/AGS, INR/EU, AND EUR/PPD FOR YVETTE SAINT-ANDRE

OSD FOR COMMANDER CHAFFEE

WHITEHOUSE FOR NSC/WEUROPE


E.O. 12958: N/A
TAGS: OPRC KPAO AU

SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: May 04, 2007


Parliament Remembers Nazi Victims


1. The Austrian Parliament will hold a special session to remember
the victims of the Nazi regime today. ORF television will broadcast
live from Parliament on channel ORF II, starting at 10:00 am.
Parliamentary President Barbara Prammer (SPOe) is among the speakers
discussing "Resistance from 1938 - 1945; Moral Courage Today."
Ceremonies will continue this weekend, marking the 1945 liberation
of the Mauthausen concentration camp in Upper Austria by US forces.
In connection with upcoming events in Austria commemorating the
victims of National Socialism, mass-circulation daily Kurier reports
on a survey among Freedom Party members on the issue. Apparently,
the daily notes, some FPOe representatives "have a bit of a problem"
with the Holocaust: For party boss Heinz-Christian Strache, the
concentration camp victims "don't stand out. It is always important
to remember all victims of all wars," he said. Some of his
colleagues from Upper Austria have complained that commemorative
events at the Mauthausen concentration camp are being held too
often, suggesting that once every five years would suffice, the
Kurier writes.


IMF Praises Austrian Economic Policy


2. Austrian economic policies have been praised in an annual report
by the International Monetary Fund (IMF). The Washington-based
organization gave strong marks to a robust Austrian economy, high
growth rates and low unemployment. All of this, according to the
IMF, has been made possible by stable and restrained wage policies.
The report also suggested that retaining such wage policies would be
the key to ensuring Austria's ability to compete on the
international stage.
In its praise for Austria's economic policies, the IMF emphasized
that minor wage increases had kept labor costs in check even amid an
expanding demand for labor, the semi-official daily Wiener Zeitung
writes. The Fund also welcomed a new agreement between unions and
management for continuing the current moderate wage policies. The
current economic trend was also bolstered by Austria's focus on the
rapidly-growing economies in east-central Europe, especially in the
banking sector, says the daily. Furthermore, the IMF approved of
Austria's efforts to balance the country's budget, but said this
should be done sooner rather than later, and welcomed an increase in
investments for research and development, education and
infrastructure. According to the IMF, future tax reductions could be
reserved for companies and sectors of the economy which are creating
new jobs. The Fund also called for additional reforms to the pension
and health systems.


Iraq Security on the Agenda in Egypt


3. The second and final day of a summit of world and regional powers
on the future of Iraq is focusing on security issues. In addition,
US Secretary of State Condoleezza Rice is expected to meet her
Iranian counterpart Manouchehr Mottaki at the summit in the Egyptian
report of Sharm el-Sheikh today. In meetings yesterday, Rice urged
cooperation of the regional states to stabilize Iraq, ORF television
reported. In his analysis, ORF Middle East correspondent Karim
El-Gawhari suggested, however, that countries like Iran and Syria,
"concerned that they might be next on Washington's hit list, will
likely prefer the US to remain caught in the Iraqi quagmire for the
time being."
ORF radio early morning news Morgenjournal quotes US Under Secretary
for Political Affairs Nicholas Burns as stating "There will be a
very important meeting in Sharm el-Sheikh: Secretary Rice will be
there with the Iranian foreign Minister for their first meeting. We
think that is a very important moment and we hope the Iranians will
take the steps necessary to be much more constructive and peaceful
neighbor for Iraq." In centrist daily Die Presse, Middle East
correspondent Karim El-Gawhary says the "government in Baghdad is
asking its neighbors to pay up" at the conference in Sharm
el-Sheikh. But "although the conference in Egypt was supposed to be
a major demonstration of international support for Iraq, it did not
take long for rifts to emerge. The Sunni Arab states in particular
are reluctant to give money as long as there is no guarantee the
Sunni minority in Iraq will participate in the country's political
processes and get its share of the oil resources," El-Gawhari says.
"Interesting enough, Shiite Iran has proved to be far more generous:
Tehran's top diplomat Ali Larijani said his country would make one
billion dollars available for reconstruction loans." The reason for
this stance may be that Iraq's "Sunni neighbors are concerned that
their money for the Maliki government might end up being used to
support Shiite militias in their civil war against the Sunnis," the
correspondent argues.


Israelis Urge Olmert to Step Down


4. Tens of thousands of Israelis joined a demonstration in Tel Aviv
last night calling for Prime Minister Ehud Olmert to resign over his
handling of last year's war in Lebanon. Followers of parties from
across the political spectrum joined the protests. Olmert, however,
reiterated he will stay in office to implement proposals in the
official report published earlier this month, which sharply
criticized his role in the war.
In liberal daily Der Standard, Jerusalem correspondent Ben
Segenreich reports on the "storm in the Kadima Party's teacup." The
call on Olmert to step down by Foreign Minister and Kadima
heavyweight Tzippi Livni failed. The Party ended up backing its
embattled Prime Minister. "The Premier has meanwhile emphasized his
determination to stay in office, despite the public outrage over his
handling of the Lebanon war last year," Segenreich says, and
explains that Olmert "certainly profited from Livni's rather poor
and inconsistent performance" earlier this week. If Olmert keeps his
position for the time being, he'll owe this to a "certain
indifference among Israelis," which, Segenreich suggests, "is rooted
in the notion that at this point there is nobody in sight who could
do a better job."
McCaw