AUSTRIAN MEDIA HIGHLIGHTS: June 21, 2007

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: June 21, 2007


EU Leaders to Discuss New Treaty


1. EU heads of government are preparing to meet in Brussels today to
discuss a treaty to help the union work more effectively. A draft
tabled by Germany recommends deep reforms, but not a constitution -
an idea rejected by French and Dutch voters two years ago. Whether
progress can be made at the summit remains to be seen, as Britain,
and Poland in particular, have repeatedly voiced their opposition to
some aspects of the proposal. According to the media, Austria's
position in Brussels is to try and preserve as much of the original
constitutional draft as possible. Austrian Chancellor Alfred
Gusenbauer told ORF radio he hopes that "ultimately, reason will
prevail" in the debate.
Austrian media report on the German proposal to EU states that they
should drop the idea of a constitution at the summit beginning in
Brussels today. According to ORF radio, a paper circulated by
Germany as current EU President says the constitutional concept is
abandoned, but recommends deep reforms to streamline decision-making
in the EU. Poland and Britain continue to warn that they could veto
progress on a new treaty unless changes are made to the current
draft. In an interview with mass-circulation provincial daily Kleine
Zeitung, Austrian Foreign Minister Ursula Plassnik said that despite
the tensions, she is "optimistic" regarding the outcome of the
summit, although "we still have a lot of work ahead of us." However,
"it won't do to make the 'problem children' publicly look like
fools. We can only find a solution, if we work together. Only
together can we make progress. It is therefore also in our interest
to try and understand the concerns of countries like Poland."
Plassnik warned that "creating a rift within Europe won't get us
anywhere; it is not the formula for European integration. Europe's
power does no lie in division, but in cooperation." Meanwhile, in an
interview with mass-circulation tabloid Oesterreich, Austrian
Chancellor Alfred Gusenbauer said he expects a "particularly
difficult summit. Key questions remain unresolved. But we will take
the time that is necessary for a compromise." Regarding Poland, he
explained he "understand Warsaw's position in principle. The EU is
based on shared sovereignty, though. Thus, Poland's call for
solidarity works both ways, and it is solidarity with the European
project that is required these days. We need a European Union that
is able to act and that is in touch with the people."


US Warns Government and OMV against Iran Deal


2. All major Austrian media report on a PAS-facilitated backgrounder
with high-ranking US Embassy representatives, who explained to
journalists in Vienna on Wednesday the US concerns over OMV's
planned large-scale gas deal with Tehran. "Rather intensive" and
"high-level talks" have been held with the Austrian government and
OMV in order to convince the Austrians of the political
implications, should they go ahead with the deal. Furthermore,
international concerns over Iran's nuclear ambitions make the timing
of the deal highly questionable, the US diplomats said. Applying the
Iran Sanctions Act would be "a last resort," however, they added.
ORF online news, sourcing Austrian Press Agency APA, reports that
"following the first warnings from Washington, high-ranking US
government representatives have now traveled to Vienna to repeat the
threat of sanctions, should the Austrian energy provider go ahead
with the planned deal."
Reporting like all major Austrian media on the PAS-facilitated
backgrounder with high-ranking US Embassy representatives, who
discussed Washington's position regarding the OMV's planned gas deal
with Iran with journalists in Vienna, semi-official daily Wiener
Zeitung headlined "USA increasing pressure on OMV." Washington won't
tolerate any deviation from the economic boycott aimed at forcing
Iran to its knees in the dispute over its nuclear ambitions, the
daily added. Concern over the possibility that OMV could be doing
the ground work for other energy companies, including Shell, Total
or Repsol, which are only waiting for someone to break the blockade
against Iran, might have provoked Washington's explicit warning, the
Wiener Zeitung suggested.
Likewise, mass-circulation tabloid Kronen Zeitung said the US "is
threatening to punish OMV." The Americans are "pestering OMV over
its planned gas deal with Iran. The project is immoral; it
threatened the reputation of the energy company, and must not be
pushed through, because otherwise OMV could be punished. The
Austrian energy provider has meanwhile dismissed the criticism,
saying that all laws were being observed," the Kronen Zeitung wrote.
The tabloid quoted a US Embassy diplomat as emphasizing that "you
can't just say 'business is business' in Iran's case."
Liberal daily Der Standard stated that the US wants to get OMV to
abandon its planned gas deal with Iran and has warned that "OMV's
reputation could suffer." The "high-ranking US diplomats had to
admit that the US does not have much to go on against OMV's
interests in Iran," the daily wrote. Still "should all US talks with
the Austrian government and OMV fail to bear fruit, should the
preliminary agreement become a binding contract and money be
transferred, the first-ever application of the Iran Sanctions Act
could be an option," which could damage OMV's reputation, the
Standard quoted the US Embassy representatives.
Centrist daily Die Presse headlined "US wants to 'blacklist' OMV,"
and suggested that although the United States has said it could
impose sanctions against OMV, should the energy provider go ahead
with its large-scale business deal with Iran, these warnings are
"barely more than empty threats. Washington has urged OMV to agree
to a break in negotiation with Tehran, pointing to the boost the
deal could give Iran's regime at a critical stage in the
international community's efforts to motivate Tehran to abandon its
nuclear program. However, the US government is well aware that the
dispute with OMV is of a symbolic rather than factual nature: They
don't want to be accused of having done nothing, should the OMV's
new business partner Iran suddenly turn out to have acquired nuclear
weapons," the Presse argued.
Mass-circulation daily Kurier quoted the US Embassy representatives
as stressing that "we do not want the Iran deal to proceed." It is
the "wrong project at the wrong time in the wrong place: After all,
the regime in Tehran supports international terrorism, ignores human
rights, and is blithely pushing ahead with its more than
questionable nuclear program." Although the "Iran Sanctions Act has
never been applied so far, it could become more than just an idle
threat, given that both the US Republicans and the Democrats have
been calling for tougher economic sanctions against Iran and its
business partners, and are busily working on a new draft law," the
Kurier said.


Meeting Planned Between Abbas and Olmert


3. Movement seems to be possible in the deadlocked Middle East peace
process with a planned meeting between Palestinian President Mahmoud
Abbas and Israeli Prime Minister Ehud Olmert in Egypt next week. A
proposal has also been submitted to nominate a new special envoy for
the Middle East. According to US media reports, outgoing British
Premier Tony Blair could be appointed to the job. Meanwhile,
President Abbas has condemned the militant group Hamas as "murderous
terrorists and coup plotters" in response to the group's takeover of
Gaza last week. In his first speech since the takeover, Abbas ruled
out talks with Hamas, but underscored the crisis should not prevent
peace negotiations with Israel. Hamas has reacted angrily, with the
group's leader in Lebanon dismissing Abbas' speech as "full of
lies," wrote liberal daily Der Standard.


Taliban to Target Kabul


4. The Taliban in Afghanistan are now changing their strategy to
target the capital Kabul according to a spokesperson for the
militants. In an interview with British news network BBC, the
spokesperson said the Taliban were recovering after NATO had
infiltrated the group and killed some of its leaders, and added that
his group is now adopting the same tactics as insurgents in Iraq,
according to ORF radio early morning news Morgenjournal.
Kilner