AUSTRIAN MEDIA HIGHLIGHTS: March 12, 2007

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: March 12, 2007


Coalition Conflict About Inheritance Tax


1. The conflict in the governing SPOe/OeVP coalition about the
inheritance tax, which the Constitutional Court judged to be
unconstitutional, last week, is escalating. On Sunday, Chancellor
Alfred Gusenbauer expressly rejected the OeVP proposal to abolish
the tax altogether. Rather, he wants to solve the controversial
issue within a comprehensive tax reform. The OeVP wants to discuss
the inheritance tax in a party leadership meeting on Monday and has
already indicated that it is not prepared to compromise on the
matter. If the current regulations on inheritance tax are not
repaired until July 2008, the tax will automatically be abolished,
according to the Court.
According to independent daily "Der Standard," the Chancellor is
bent on learning from the Minister of Finance how the missing tax -
a sum of about 250 million euros - is to be made up for. In the ORF
"Pressestunde," Gusenbauer referred to the option preferred by
Federal President Heinz Fischer of "repairing the inheritance tax in
a way that is fairer from a social point of view and in addition, in
conformity with the constitution. However, the Chancellor would
rather settle the inheritance tax issue in the process of a general
tax reduction scheme which will relieve middle-range incomes. The
OeVP, on the other hand, argues that the inheritance tax is
primarily a burden for those with lower and medium incomes. In an
analysis of the current controversy, "Der Standard" points to the
probability of the OeVP gaining the upper hand. Most Austrians are
opposed to the inheritance tax - and that includes medium and
lower-income taxpayers as well. This puts pressure on the SPOe.

Mysterious Terror Threats


2. Despite the publication of a video in which Islamists threaten
Austria and Germany with terror attacks if they refuse to withdraw
their soldiers from Afghanistan, the Austrian authorities do not
believe in an imminent threat to security in this country.
Representatives of the Ministries of the Interior, European and
International Affairs and Defense as well as Chancellor Gusenbauer
asserted on Sunday that the threat is nevertheless taken seriously
and its background investigated. Meanwhile, experts are trying to
clarify the identities and motives of the originators of the
internet video. Some of them suspect that the alleged terrorists
could merely be copycats trying to spread fear and panic.
The recent terror threats do not just aim at the Austrian engagement
in Afghanistan, but also contain references to domestic issues,
writes mass circulation tabloid "Neue Kronenzeitung": In the video
where Austria is called on to withdraw its soldiers from the
country, the alleged terror messengers specify that "the money which
you now spend on Bush and his people, you can then use for the
students to whom you have given promises which you then broke" - an
obvious allusion to the study fees. Austrian Chancellor Gusenbauer
pointed out the oddity of the fact that the threat was directed to
Austria, which has only 4 soldiers in Afghanistan and Germany, which
has 3,000 troops there. "Neue Kronenzeitung" refers to the
possibility that the originators of the video might be former
students with a Viennese past.

EU Commits to More Climate Protection


3. The outcome of the EU summit on climate change on Friday is
equivalent to a far-reaching change of course in the EU. The Union
has agreed on an ambitious package of measures on climate protection
that goes beyond the Kyoto goals. Until 2020, there are to be 20
percent less emissions than measured in 1990. The climate goals mark
a turning point in EU policy and demonstrate that the Union is
prepared to take a leading role in global efforts to reduce harmful
CO2 emissions. At the same time, they demonstrate the limits of the
free market.
Independent daily "Salzburger Nachrichten" points out that there is
no easy solution and that many small steps have to follow the big
step that was taken in Brussels by the European states. In
particular, the burden-sharing among the individual states will take
a major effort. EU Chair Angela Merkel had to bend to European
reality, which means that summits tend to be concluded with a rather
soft compromise that is just about bearable for the different
countries. However, at least the Chancellor had the courage to meet
the challenge rather than try and simply get by during Germany's EU
presidency, analyzes "Salzburger Nachrichten." The idea of
environmental protection as economic opportunity, a more
environmentally friendly Europe that is aware of its own strengths -
this may not be the grand design, but the direction is right, writes
the daily.

Chirac Will Not Run For Third Term


4. France's President Jacques Chirac will not run for office again -
this is the gist of an announcement he made in an emotional TV
address last night. In his last big TV appearance, the outgoing
President warned his citizens never to fall for extremism, racism
and anti-Semitism. Also, he praised the "French model" and urged for
a continuation of the European process, pointing out the damage that
nationalism had done to the continent in the past. His speech
contained no reference in support of his party's candidate for the
upcoming election, conservative hardliner Nicolas Sarkozy.
Chirac's TV appearance was largely seen as a last chance for him to
present his political legacy, writes mass circulation daily
"Kurier." He spent 42 years in French politics, 12 of which as
President and is all in all a man of contradictions. The daily
refers to his decided aversion against economic liberalism, which
was shared by many French, as was his opposition to US President
Bush's Iraq war campaign. He showed courage during the Bosnian war
when he ordered his troops to stop the Serbian militia. He
repeatedly came forward against discrimination of France's migrant
youth, even if the measures his government took in this respect were
insufficient. On the other side, there is much to criticize:
Chirac's extravagant style, his tendency to give promises that he
never could keep or even intended to keep, and the lack of thorough
reforms due to his inability to push through his political agenda.

IAEA Boss Goes to Pyongyang


5. Mohammed ElBaradei, head of the IAEA has embarked on a trip to
isolationist nuclear power North Korea. On the invitation of North
Korea's dictator Kim Yong-Il, ElBaradei will soon arrive in the
country's capital for talks on its controversial nuclear program and
the details of its planned dismantling. ElBaradei has few illusions
about the effect of his visit - he judges the de-nuclearization of
the poor country to be a "complex, step-by-step process," but also
points out that North Korea's decision to re-admit the IAEA
inspectors to the country is a "historic" move on the part of the
regime.

Bush's Difficulties in His Backyard


6. US President George W. Bush's Latin American trip is
characterized by protests of the local citizens. Already at his
first stop in Brazil, the President was greeted by tens of thousands
of demonstrators. In Colombia, where Bush arrived on Sunday, the
demonstration escalated: American flags were burned, windows of
bank buildings were smashed and shops were ransacked. Two
demonstrators and four policemen were injured, 120 demonstrators
were arrested. Bush has meanwhile proceeded to Guatemala where he is
to meet with President Oscar Berger. Protests are expected to take
place there, too.
Centrist daily "Die Presse" comments that it was probably high time
for the US President to embark on an image tour in Latin America,
but then goes on to point out what many observers believe - that
Bush's tour is an inadequate attempt to stop the influence of
Venezuela's President Hugo Chavez on the subcontinent. Bush vs.
Chavez - this is an ideological, political and economic divide where
the various Latin American states are forced to take sides: For
market economy, free trade and representative democracy, or for the
socialist-authoritarian model. The controversial Venezuelan
President, for all his provocations and fierce rhetoric, could have
benefited Latin America indirectly: By forcing Washington to pay
more attention to its backyard, which it had neglected since 9/11.
McCaw