This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 VIENNA 001101 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/AGS AND INR/EU 
 
E.O. 12958: N/A 
TAGS: PGOV AU
SUBJECT:  FREEDOM PARTY LEADERSHIP QUITS - NEW MOVEMENT 
TO SUPPORT GOVERNING COALITION 
 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. 
 
¶1.  (SBU) SUMMARY: At an April 4 press conference, the 
entire Freedom Party (FPO) national leadership announced 
it was quitting the FPO to found a new movement.  The 
"Alliance for the Future of Austria" (Buendnis Zukunft 
Oesterreichs - BZO) will have Carinthian Governor Joerg 
Haider as chairman.  The announcement follows weeks of 
internal party rivalry between Haider's followers and the 
FPO's right wing under the leadership of Vienna state 
chairman Heinz-Christian Strache.  The move does not 
immediately affect Austria's governing coalition: 16 of 
the 18 FPO parliamentarians and all FPO cabinet ministers 
have declared allegiance to the new BZO, assuring the 
coalition's parliamentary majority.  Chancellor 
Schuessel's People's Party (OVP) has indicated its 
willingness to continue governing with the now re-branded 
BZO.  End Summary. 
 
FREEDOM PARTY LEADERSHIP HITS EJECT BUTTON 
------------------------------------------ 
 
¶2.  (U) Carinthian Governor Haider, FPO Chairwoman Ursula 
Haubner, Vice-Chancellor Hubert Gorbach, FPO 
Parliamentary Leader Herbert Scheibner and FPO Secretary 
General Uwe Scheuch announced at an April 4 press 
conference that they were leaving the FPO to found a new 
"movement," the BZO.  They have chosen orange as their 
identifying color, replacing FPO blue.  They argued that 
the break had become necessary due to "destructive 
forces" active in the FPO.  Gorbach stressed that all FPO 
government members "fully support the new course." 
Scheibner noted that there was a "clear intention" among 
FPO Members of Parliament to continue participation in 
the government. He said he could "guarantee a majority 
for the government in parliament."  In the course of the 
next few weeks, the BZO will, according to Haider, hold a 
founding party convention.  Haider said he wanted a 
managing chairman to run day-to-day business for the BZO, 
since he plans to remain in office as Carinthian 
Governor.  Floor Leader Scheibner is the most likely 
candidate for this position. 
 
COALITION STABILITY DOES NOT APPEAR IN DOUBT, FOR NOW 
--------------------------------------------- -------- 
 
¶3.  (SBU) Chancellor Schuessel met with the leadership of 
the OVP later on April 4 to discuss the continuation of 
the coalition with the BZO.  After the meeting, Schuessel 
stressed that his goal was to maintain a stable 
government.  If that were not possible, he said he could 
not rule out early elections. 
 
¶4.  (SBU) However, any immediate doubts about the 
coalition's viability were short-lived.  On April 5, 16 
of the 18 FPO Members of Parliament declared their 
support for the new BZO, while two abstained.  Combined 
with the 79 OVP seats, the coalition should be able to 
count on a four-seat margin in the 183-member lower house 
(Nationalrat).  After the OVP and FPO/BZO caucus 
meetings, OVP Floor Leader Wilhelm Molterer noted that 
the government had a stable majority. 
 
BITTER BATTLE AHEAD OVER FPO FINANCIAL LEGACY 
--------------------------------------------- 
 
¶5.  (SBU) The founding of the BZO caught the FPO rank-and- 
file by surprise.  The heads of the Vienna, Tyrolean, 
Burgenland and Salzburg state chapters said they wanted 
to remain with the "old" FPO.  The Carinthian and Upper 
Austrian chapters declared solidarity with the BZO. 
Others have taken a wait-and-see position.  There will be 
bitter battles ahead between the FPO and BZO on financial 
issues.  Outgoing FPO Secretary General Uwe Scheuch noted 
that the FPO would retain federal party subsidies, as 
well as the party think tank.  However, he noted that the 
old FPO would also retain responsibility for the FPO's 
debts, which amount to at least 3.2 million Euro.  The 
BZO's financing is completely unclear for now. 
 
COMMENT: NEW SPRING COLLECTION WITH HAIDER IN THE LINEUP? 
--------------------------------------------- ----------- 
 
¶7.  (SBU) The re-minted BZO, with the support of the 
former FPO MPs, is in a position to guarantee the 
continuation of the coalition until fall 2006, when 
regular elections are due.  However, it remains 
questionable whether Haider can turn the BZO into an 
attractive movement centered on his personality.  His 
charisma has faded significantly since his glory days in 
the 1990s.  The new color scheme of Haider's following 
may not appear serious to many voters.  In any case, the 
long term political fortunes of both the BZO and the FPO 
look shaky at best, with financial and electoral deficits 
in both camps. 
 
BROWN