AUSTRIAN MEDIA HIGHLIGHTS: January 25, 2008

UNCLAS VIENNA 000122

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: January 25, 2008

BZOe Demands an End to Immigration into Austria


1. Right-wing opposition party BZOe leader Peter Westenthaler has
called for an end to immigration to Austria. He made an exception,
though, for needed skilled workers, who should be allowed into
Austria as holders of "green-card"-type permits similar to those
used in the USA and Canada. Westenthaler emphasized, however, that
even such skilled workers should be able to speak German well, be
well-educated and have a desire to be integrated, in order to be
allowed into the country. Semi-official daily Wiener Zeitung reports
that BZOe leader Peter Westenthaler has proposed to restrict
immigration to Austria to needed skilled workers willing to
integrate. Westenthaler added that foreign ghettoes similar to
those that he claimed existed in many areas of Vienna were
unacceptable. Foreigners who refused to integrate into Austrian
society, he said, should be deported. Furthermore, the BZOe leader
dismissed the claim made in the Interior Ministry's recently
published Integration Report that providing housing subsidies to
immigrants would help prevent the formation of foreign ghettoes.
Such subsidies should be reserved for Austrians, he said. The daily
also quotes Westenthaler as calling for more pressure on immigrants
to integrate. He cited language classes for pre-school children and
their family members as one means of doing so.
Another means, he added, would be what he called "professional
schooling" for immigrants that would acquaint them with their rights
and duties as well as relevant provisions of Austrian laws.
According to the BZOe boss, such education would help immigrants,
who often found themselves lost in "bureaucratic jungles."
Meanwhile, the Freedom Party (FPOe) has called the Interior
Ministry's Integration Report "grossly negligent," since Austria -
according to the party -- was being "inundated by immigrants" from
different cultures, whose numbers "exceed the acceptable." The FPOe
has demanded the deportation of long-term unemployed immigrants,
foreigners opposed to integration and criminal immigrants. Freedom
Party leader Heinz-Christian Strache claimed that the sixteen per
cent of Austrian residents with foreign backgrounds had created
"parallel societies" that had left many native-born Austrians
disgruntled.


Economic Chamber Calls for Lower Interest Rates


2. Austrian Economic Chamber (WKOe) President Christoph Leitl has
called on the European Central Bank (ECB) to lower interest rates by
0.5 percent. Leitl criticized that ECB President Jean-Claude Trichet
had been passive in the face of the worldwide financial crisis and
demanded the formulation of a common European economic policy. The
WKOe President argued that the "Americans are trying to dump the
junk that they created on us. And we Europeans are simply standing
on the sidelines and watching them." According to Leitl, the ECB had
been negligent on the issues of price stability and economic growth.
ORF radio in its noon news report Mittagsjournal on Thursday quoted
Austrian Economic Chamber (WKOe) President Christoph Leitl as
calling on the European Central Bank (ECB) to lower interest rates
by half a percentage point. Criticizing ECB President Jean-Claude
Trichet of having been "passive in the face of the worldwide
financial crisis," Leitl complained that the ECB boss "has merely
been sitting in the spectator's box," at a time when he should have
been "playing an active role." Regarding the issue of the new EU
climate-protection package, Leitl dismissed concerns that jobs might
be lost through its implementation, ORF radio continued. The WKOe
President also called for incentives for businesses that operated in
an environmentally-friendly manner and for penalties for those
engaged in production on the basis of poor standards. It appears
somewhat doubtful, however, that the ECB will heed Leitl's call for
lower interest rates, Austrian media suggest. Trichet has told MEPs
in Brussels that the bank will not lower interest rates because of
the continued danger of runaway inflation.


Plan to Stimulate US Economy


3. Congressional leaders in the United States have agreed on a
150-billion-dollar rescue package to stimulate the ailing US
economy. More than 100 million families will benefit under the plan,
which also includes incentives for business. President George Bush
had called for a growth package that could be implemented quickly,
after fears of a looming American recession contributed to turmoil
on the international financial markets. The Bush administration is
hopeful the rescue package will lead to higher consumer spending and
increased business investment this year. ORF radio early morning
news Morgenjournal quotes US President George Bush as commenting on
the 150-billion-dollar rescue package to stimulate the ailing US
economy: "This package has the right set of policies, the right
size. The incentives in this package will lead to higher consumer
spending and increased business investment this year. The borderline
of this package recognizes that lowering taxes is a powerful and
efficient way to help consumers and businesses. I've always believed
that allowing people to keep more of their own money and use it as
they see fit is the best way to help our economy grow." In addition,
Democratic speaker of the House of Representatives Nancy Pelosi
welcomed the agreement, saying this was a "remarkable package
because it is about putting money in the hand of America's working
families. It is there to strengthen the middle class, to create jobs
and to turn this economy around and that is what is important about
it. It is timely, it is targeted, and it is temporary," ORF radio
quotes Pelosi.
Meanwhile, independent provincial daily Salzburger Nachrichten
reports that despite the concerns over a potential economic
recession in the United States, Austrian companies exporting to the
US are confident there is "no reason for panic." The majority of
exporters are confident that their reliance on "niche products" is
making them almost independent from the stock markets' ups and
downs, the daily says. Walter Koren, the head of the Economic
Chamber's international business office, also does not believe that
the significance of the United States for Austrian exporters will
change or suffer.


Prodi Resigns


4. Italy's Prime Minister Romano Prodi has handed in his resignation
to President Giorgio Napolitano, after losing a vote of confidence
in his coalition government in the Italian Senate, the Upper House
of Parliament. Prodi will continue as head of government until a
successor is found. President Napolitano may now call early
elections. He is also expected to push for much-needed electoral
reforms, given that under the current system smaller parties with
only a handful of seats can hold the balance of power in Parliament
- a factor that also caused the current crisis. Like all Austrian
media, independent provincial daily Salzburger Nachrichten reports
on the current government crisis in Italy, where Premier Romano
Prodi handed in his resignation, after he lost a vote of confidence
in his coalition government in the Italian Senate. The daily says
that Prodi chose to face the Senate vote despite the government's
hopeless situation and against the advice of President Giorgio
Napolitano. It must have been the Premier's "longest day," the
Salzburger Nachrichten suggests, pointing out that Prodi, the
"stubborn fighter," would not be deterred by the inevitable outcome
of the vote. Centrist daily Die Presse says that yesterday's
developments thus marked the "turbulent end of the 61st Italian
government since the end of WWII." Prodi's willingness to "fight was
to no avail," the daily continues: The "Senators in Rome killed off
his coalition government after a mere 20 months."


NYT Endorses Clinton, McCain


5. The US daily newspaper New York Times has endorsed Democratic
Senator Hillary Clinton and Republican Senator John McCain for their
parties' nomination in the US presidential election in November. The
paper emphasized Senator Clinton's experience. The move comes ahead
of the next two important rounds in the race for the White House:
the Democratic primary in South Carolina on Saturday, and the
Florida primary on January 29, where presidential hopefuls from both
parties are going to compete. Reporting on the US presidential
election process, Washington correspondent for centrist daily Die
Presse Norbert Rief headlines "[Bill] Clinton takes on the Doberman
role." The former President has launched "harsh attacks against
presidential hopeful Barack Obama," a fact that "has left the
Democrats concerned." The "competition between Hillary Clinton and
her rival Obama has taken on a spiteful note, and Hillary's husband
Bill has taken on the role of the Doberman." Many Democrates are not
happy with this development, arguing that such behavior should be
beneath a former US President, Rief says. Thus, prominent Democrats
have urged Mr. Clinton to show moderation, as his verbal attacks
threatened not only to damage his wife's campaign, but the entire
party's reputation. Meanwhile, mass-circulation daily Kurier,
looking to the upcoming South Carolina primary, says that in the
"Democratic primary election battle contestants Clinton and Obama
are vying for the votes of the African Americans -- with undisguised
attacks and tricky statements" that could In an interview with the
daily, US political analyst David Bosits underscored that African
Americans in particular "want change in US politics."


Kosovo Independence "Matter Of Days"


6. The Prime Minister and the President of Kosovo have announced the
Serbian province will declare independence from Belgrade very soon.
Independence was a "matter of days," Premier Hashim Thaci said
during a visit to Brussels recently. He added that he is hoping for
"massive support from the United States and from Europe," but some
EU states, like Greece, have said they would prefer more
negotiations on Kosovo's future status. The closer the date of
Kosovo's declaration of its independence from Serbia is, the more
hectic the EU's crisis diplomacy becomes, mass-circulation daily
Kurier comments.
Kilner