Identifier
Created
Classification
Origin
08VIENNA1455
2008-09-29 14:34:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:  

AUSTRIAN ELECTION: FAR RIGHT SEES STRONG GAINS; SPO PLACES

Tags:  PGOV PREL AU 
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TO RUEHC/SECSTATE WASHDC IMMEDIATE 1018
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 VIENNA 001455 

SENSITIVE

SIPDIS

STATE FOR EUR/CE

E.O. 12958: N/A
TAGS: PGOV PREL AU
SUBJECT: AUSTRIAN ELECTION: FAR RIGHT SEES STRONG GAINS; SPO PLACES
FIRST

REF: VIENNA 1418

UNCLAS SECTION 01 OF 02 VIENNA 001455

SENSITIVE

SIPDIS

STATE FOR EUR/CE

E.O. 12958: N/A
TAGS: PGOV PREL AU
SUBJECT: AUSTRIAN ELECTION: FAR RIGHT SEES STRONG GAINS; SPO PLACES
FIRST

REF: VIENNA 1418


1. (SBU) Summary: Austria's ruling coalition parties -- the Social
Democrats (SPO) and the conservative People's Party (OVP) - suffered
historic losses while still finishing first and second in the
September 28 parliamentary election. The big winners were the far
right, the populist Freedom Party (FPO) and the Alliance for the
Future of Austria (BZO),which exceeded expectations and combined
for nearly 30 percent of the total vote. The strong showing by the
far right reflects public frustration with the fecklessness of the
current government, as well as concerns about globalization,
immigration, and the EU. SPO Chairman Werner Faymann now faces the
difficult task of forming a government. Faymann has ruled out a
coalition with the FPO or BZO; the OVP has done likewise, though
somewhat less categorically. Faymann on election night repeated his
preference for forming another SPO-OVP "grand coalition." Other
possible options include a right-of-center OVP-FPO-BZO government or
an SPO-led minority government, although a minority government would
probably be short lived. The OVP is engaged in a leadership debate
which may lead to the resignation of party Chairman Wilhelm
Molterer. End Summary.

Results
--------------


2. (U) Below are the results, excluding roughly 500,000
absentee/postal ballots still to be counted, with the 2006 figures
in brackets and a breakdown of the number of seats to be awarded
each party in the 183-member legislature:

SPO: 29.7% - 58 seats (35.3% - 68 seats)
OVP: 25.6% - 50 seats (34.3% - 66 seats)
FPO: 18.0% - 35 seats (11.0% - 21 seats)
BZO: 11.0% - 21 seats (4.1% - 7 seats)
Greens: 9.8% - 19 seats (11.0% - 21 seats)

Because absentee ballots will not be completely counted and the
final tally known until October 6, slight changes to seat
distribution is possible.

Coalition Talks
--------------


3. (SBU) Following Austrian political practice, President Fischer
will give the mandate to form a government to Famann as leader of
the strongest party. This willinitiate coalition negotiations that
could potenially last for months. On election night, Faymann
reiterated that he will not form a government wih the FPO and/or
BZO, which he criticized for thir "polarizing" influence. OVP
leader Molterer hs also excluded a coalition with the FPO and BZOas long as they maintain their anti-EU ourse. Faymann said he

preferred to form another coalition with the OVP, while emphasizing
that he expects the OVP to select new leadership. The OVP Executive
Board was scheduled to meet September 29 to discuss the election
result; the board's deliberations could well lead to the replacement
of Molterer as party chairman. Environment and Agriculture Minister
Josef Proell, who is most often mentioned as the likely successor to
Molterer, is known to prefer a grand coalition. SPO contacts tell
us they believe they can work more productively with Proell than
with Molterer.


4. (U) At the same time, pledges notwithstanding, each of the
coalition parties could form a majority government by teaming up
with the FPO and BZO. This would be particularly risky for the SPO,
many of whose members would likely reject such an alliance; a
right-of-center OVP-FPO-BZO coalition is considered more likely.
There is also the possibility that the SPO could form a minority
government, possibly including the Greens. But such a government
would be weak and probably short lived. Moreover, on election night
FPO leader Heinz-Christian Strache asserted that he would not offer
legislative support to an SPO-led minority government.

Historic Setback for SPO-OVP
--------------


5. (U) The election results were devastating for both the SPO and
OVP, which have dominated Austrian politics since the end of the
Second World War. Each of the parties garnered the lowest portion
of the vote in its history. The two far right parties, meanwhile,
combined for a higher vote total than the 26.9 percent won by the
FPO in 1999. Significantly, exit polls indicate that among the
primary motivations for voters choosing the FPO and BZO was
dissatisfaction with the current grand coalition, which was
frequently paralyzed by intra-party bickering during its 18-month
tenure. The personal, charismatic appeal of BZO leader Joerg Haider
and "bringing a new wind" to Austrian politics were other key
reasons cited by voters leaving the polls. Political scientist
Peter Filzmaier, in his analysis for ORF TV, maintained that the

VIENNA 00001455 002 OF 002


surge in FPO-BZO support reflected anger at the grand coalition
parties, rather than a strong rightward shift in the Austrian
public. (Note: Austria also lacks a left-wing protest party,
excepting the thoroughly discredited communists.)

Comment: OVP May Hold Key
--------------


6. (SBU) Despite suffering the greatest decline in support among the
parties since the last election, the OVP appears likely to play a
determining role in the formation of the new government. If the OVP
replaces Molterer and opts for a return to the grand coalition, the
SPO will likely accept. If not, the OVP could form a government
with the far right, as it did after the 1999 elections. Another
option would be to go into opposition, as some party members
advocated in election-night interviews. Assuming that the SPO would
be unable or unwilling to link up with at least one of the far right
parties, such a move would leave Faymann with no alternative to a
feeble minority government.


7. (SBU) In our view, political scientist Filzmaier is right to say
that voters chose the FPO and BZO primarily to express anger at the
grand coalition. But that doesn't tell the whole story. Voters are
not merely angry at the governing parties for failing to cooperate.
Among the reasons cited for voting for the far right, many also
claimed that the FPO/BZO "represents my interests." Many voters
were angry at the grand coalition for failing to address their
concerns about issues like rising food prices, globalization, the
EU, and Muslim immigration. There is no doubt that these play a
role in Austria, as elsewhere in Europe, in moving voters to the
right. The grand coalition parties have rightfully accused the far
right of exploiting, and exacerbating, these anxieties, but they
have failed to effectively deal with the root causes.


8. (U) As the dust settles from yesterday's vote and coalition
negotiations begin to take shape, Embassy will report further on the
likely impact of the election on Austrian foreign policy and the
implications for U.S. interests.