AUSTRIA: SPO, OVP AGREE ON NEW GRAND COALITION

C O N F I D E N T I A L VIENNA 001721

SIPDIS

DEPARTMENT FOR EUR/CE

E.O. 12958: DECL: 11/24/2018
TAGS: PGOV PREL AU
SUBJECT: AUSTRIA: SPO, OVP AGREE ON NEW GRAND COALITION

REF: A. VIENNA 1455

B. VIENNA 942

Classified by: Economic-Political Counselor J. Dean Yap for
reasons 1.4 (b) and (d).


1. (U) The Social Democrat Party (SPO) and the conservative
People's Party (OVP) reached agreement November 23 on a new
"grand coalition," two months after parliamentary elections
that marked the end of the outgoing SPO-OVP government. The
new government should be sworn in next week; December 2 is
the tentative date.


2. (U) The "new" coalition partners will continue their
current 50-50 split of the ministerial portfolios. The only
change in assignments will be the transfer of the Justice
Ministry from SPO to OVP and the Health Ministry from OVP to
SPO. The parties on November 24 announced their ministerial
assignments as follows:

SPO:

-- Chancellor: Werner Faymann
-- Infrastructure: Doris Bures
-- Women's Affairs: Gabriele Heinisch-Hosek
-- Education: Claudia Schmied (incumbent)
-- Defense: Norbert Darabos (incumbent)
-- Labor: Rudolf Hundstorfer
-- Health: Alois Stoeger

OVP:

-- Vice Chancellor/Finance: Josef Proell
-- Foreign Affairs: Michael Spindelegger
-- Economics: Reinhold Mitterlehner
-- Justice: Claudia Bandion-Ortner
-- Science: Johannes Hahn (incumbent)
-- Agriculture: Niki Berlakovich
-- Interior: Maria Fekter (incumbent)


3. (U) Post will provide bio reporting on the new Cabinet
members septel.


4. (U) One leading member of the outgoing government who is
conspicuously absent from the new cabinet is FM Plassnik. An
outspoken critic of Faymann's decision in June to call for
national referenda on future EU treaties (reftel B),Plassnik
resigned during the November 23 talks in protest against the
new coalition agreement on the matter. SPO and OVP leaders
agreed that in the new government neither party would enact a
national referendum against the will of the other. Plassnik
deemed that unacceptable, arguing that the SPO should have
dropped its support for EU referenda during the term of the
new government.

Comment: New Lineup Might Improve U.S. Relations
-------------- ---


5. () Despite suffering the largest setback of any pary in
the September 28 elections (reftel A),the VP retains its
even split of ministerial portfolos. These include powerful
ministries such as Fregn Affairs, Interior, Justice, and
Finance. Otgoing SPO Chancellor Gusenbauer was ridiculed
fr, among other things, giving away too much to theOVP in
coalition talks. However, Faymann is conidered a more deft
politician than Gusenbauer with better party management
skills.


6. (C) The new grand coalition looks much like the old, and
will likely have a similar approach to relations with the
U.S. Still, we are hopeful that an OVP Justice Minister will
prove more cooperative than the SPO's Minister Berger, who
has been openly suspicious of USG policy and intentions. The
OVP is, in general, more supportive of U.S. policies than the
SPO. One exception was the OVP's Plassnik, who engaged in
more gratuitous U.S.-bashing than other GOA leaders, and
often made herself unavailable to the Ambassador or visiting
USG officials. At times, though, she has been helpful, as
with her strong condemnation of Russian aggression in
Georgia. We hope to develop a closer relationship with her
successor.
GIRARD-DICARLO