Friction in Austrian Coalition

UNCLAS VIENNA 002718 SIPDIS SIPDIS STATE FOR EUR/AGS E.O. 12958: N/A TAGS: PGOV AU SUBJECT: Friction in Austrian Coalition Summary -------------- ¶1. The coalition Social Democratic (SPO) and People's (OVP) parties appear to be in a deadlock over major reform projects. This, coupled with incessant sniping between Minsiters, has triggered substantial criticism by the media and the opposition parties of the coalition government's ability to cooperate efficiently. There has also been some speculation on the possibility of early elections, which are, however, highly unlikely. End Summary. Reform Blockade -------------- ¶2. The coalition between the Social Democrat Party (SPO) and its junior partner People's Party (OVP) is currently going through tough negotiations on several important reforms promised in the government progranm adopted when the coalition was formed. A) On school reform, the SPO wants to introduce pilot comprehensive schools for 10-14 year olds. The OVP wants to add conditions that would protect the current dual system of compulsory junior high school ending at the age of 14 for some, and higher-education grammar school for students from 10-18 years. B) Smoking regulations, though both parties agree on tightening non-smoking regulations slightly, is also proving unmanageable. Health Minister Andrea Kdolsky (OVP) wants to grant smaller food service businesses the option of operating either as a smoking or non-smoking facility; the SPO argues that this would violate equal treatment principles. C) The partners also disagree on extending the early retirement option for persons with long pension insurance periods (minimum 40 years) to retire early. Social Affairs Minister Erwin Buchinger (SPO) is pushing for the extension, which is favored by traditional SPO core constituencies such as blue-collar workers. The OVP, however, argues there is no need for the extension. D) The Constitutional Court's decision to declare the inheritance tax unconstitutional has led to a fight between SPO and OVP over how to close the resulting hole in the budget. The SPO favors a reformed law, the OVP rejects that. In conjuction with this, another reform - abolition of the gift tax - is also pending. And No Love Lost -------------- ¶3. The SPO-OVP coalition was, from the very beginning, a marriage of necessity. With no other numerically and politically feasible alternative, SPO and OVP agreed on a coalition after lengthy government formation talks in which the OVP, following its election defeat, got major concessions from the SPO in the distribution of portfolios as well as substantive issues. The two parties' struggle for "peaceful coexistence" in the coalition is reflected in the current dispute. However, the controversy is also attributable to the fact that the two parties see the need to demonstrate profile vis-`-vis each other. ¶4. Chancellor (and SPO Chairman) Gusenbauer and Vice-Chancellor (and OVP Chairman) Molterer have stayed away from the bickering between coalition representatives, hoping to project a statesmanlike image. Gusenbauer, however, frequently seeks to steal the spotlight from Foreign Minister Plassnik (OVP) on foreign policy, most recently in their trip to the UN General Assembly in New York. Plassnik has also clashed with the SPO Defense Minsiter. Recent weeks have also seen a conflict between the Justice (SPO) and Interior (OVP) ministries over counter-terrorism measures. Comment -------------- ¶5. Despite their rocky relationship, SPO and OVP are not very likely to trigger early elections, since the Austrian public traditionally disapproves of the interruption of government work by parties seeking their fate in early elections. Rather, they will continue their messy effort at balancing satisfying their constituencies and blowing their own horns on the on hand and moving on the coalition's agenda on the other. End Comment. KILNER