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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: October 12, 2006 
 
 
SCHUESSEL ERECTS BARRIERS FOR COALITION NEGOTIATIONS 
 
Before the start of the coalition negotiations, Chancellor Schuessel 
has sent unmistakable signals to the SPOe:  The OeVP opposes basic 
social security payments to those below a certain income, a 
comprehensive school, and Eurofighter negotiations. On the latter, 
SPOe boss Alfred Gusenbauer has called for an investigative 
committee.  [Der Standard, page 3, ORF online and other Austrian 
media] [more] 
 
HOFBURG INVOLVED IN EUROFIGHTER TURBULENCES 
 
Federal President Heinz Fischer apparently also has been drawn into 
the Eurofighter contract debate. A strictly confidential document 
was conveyed to the Hofburg last Friday containing the part of the 
sales contract that deals with the business aspect of the deal. The 
Hofburg had apparently not requested the document in question.  [Die 
Presse, page 2, other Austrian media] [more] 
 
PRESIDENT OF THE FEDERAL ASSEMBLY WITHDRAWS FROM POLITICS 
 
Federal Assembly President Andreas Khol has announced his intention 
to renounce his parliamentary seat and leave politics altogether. 
Khol thus becomes the second member of the immediate OeVP leadership 
circle around Chancellor Schuessel to turn his back on politics, 
following Education and Science Minister Elisabeth Gehrer. [Die 
Presse, page 3, all Austrian media] [more] 
 
CHARGES AGAINST ELSNER COMPLETED 
 
On Wednesday, the Justice Ministry approved the prosecutor's charges 
in the Bawag affair, removing the last obstacle for a trial of nine 
former Bawag managers, including Helmut Elsner and Johann Zwettler. 
If convicted, they face possible lengthy prison sentences for fraud 
and forgery of balances. [Salzburger Nachrichten, pages 1 and 5] 
[more] 
 
EU 
 
MERKEL WANTS EU CONSTITUTION BY 2009 
 
Three months before Germany assumes the EU presidency, EU commission 
President Barroso has visited German Chancellor Merkel. He has 
called for revival of the constitution process - this tallies with 
Merkel's belief that the EU needs a constitution by the time of the 
EU elections in 2009.  [Der Standard, page 6] [more] 
 
INTERNATIONAL 
 
PLANE CRASHED INTO SKYSCRAPER 
 
A small plane crashed into a skyscraper in New York City on 
Wednesday, setting fire to parts of the building. TV station NBC 
reports four deaths. The FBI has ruled out a terror attack.  [ORF 
online] 
 
NORTH KOREA THREATENS THE US 
 
North Korea has said its decision about new nuclear tests and the 
return to the negotiation table depends on the US attitude. It has 
warned the US not to step up pressure. At the same time, France has 
voiced doubts whether North Korea really performed nuclear tests - 
the measured explosion was too weak to verify whether it was 
nuclear, said French Minister of Defense Alliot-Marie.  [Der 
Standard, page 5 and all other Austrian media] 
 [more] 
 
AUSTRIAN MEDIA ONLINE 
 
 
Schuessel Erects Barriers for Coalition Negotiations 
 
¶1. Before the start of the coalition negotiations, Chancellor 
Schuessel has sent unmistakable signals to the SPOe:  The OeVP 
opposes basic social security payments to those below a certain 
income, a comprehensive school, and Eurofighter negotiations. On the 
latter, SPOe boss Alfred Gusenbauer has called for an investigative 
committee.  Independent daily "Der Standard" stresses that, while 
the SPOe is demonstrating a conciliatory attitude, Chancellor 
Schuessel's reaction is deprecatory. He referred to "skepticism" 
within his party about a grand coalition, pointing out that the 
majority of the OeVP base opposed a grand coalition. The Chancellor 
also emphasized that his party and the SPOe were almost equally 
strong and that negotiations could only take place if both parties 
were prepared to meet on an equal footing. He expressly rejected a 
policy of incurring new debts and demanded that the SPOe present a 
financing plan for every policy proposal it makes. Asked which 
concessions the OeVP would be prepared to make, Schuessel answered, 
"The biggest concession is that we are prepared to enter into 
negotiations." 
 
Hofburg Involved in Eurofighter Turbulences 
 
¶2. Federal President Heinz Fischer apparently also has been drawn 
into the Eurofighter contract debate. A strictly confidential 
document was conveyed to the Hofburg last Friday containing the part 
of the sales contract that deals with the business aspect of the 
deal. The Hofburg had apparently not requested the document in 
question.  The Ministry of Defense took this measure of conveying 
the document in preparation for a meeting between Fischer and 
Minister of Defense Guenter Platter on Tuesday, writes centrist 
daily "Die Presse." The intention was apparently to prove there was 
nothing wrong with the contract and thus contradict SPOe charges 
that the contract had been poorly set up, noting that the contract 
was monitored by the Court of Audit several times. Fischer in the 
meantime returned the document - he does not want to interfere, nor 
does he want to be "instrumentalized" as his spokesman Bruno Aigner 
phrased it. He believes that the Austrian Parliament should deal 
with the Eurofighter deal. 
 
President of the Federal Assembly Withdraws from Politics 
 
¶3. Federal Assembly President Andreas Khol has announced his 
intention to renounce his parliamentary seat and leave politics 
altogether.  Khol thus becomes the second member of the immediate 
OeVP leadership circle around Chancellor Schuessel to turn his back 
on politics, following Education and Science Minister Elisabeth 
Gehrer. In an interview with centrist daily "Die Presse," Andreas 
Khol, one of the architects of the OeVP/FPOe coalition in 2000, said 
that he did not want to "learn new tricks." He had been fully 
convinced of the reform program initiated by the Schuessel 
government and still stands by it, Khol said. He was not prepared to 
accept inroads into this program, and also wanted to assume a 
certain degree of responsibility for the OeVP's heavy losses in the 
recent elections. Khol voiced heavy criticism of the election 
campaign, calling it a "napalm campaign." He demanded "fairness 
legislation." Khol is not convinced that Austria's future will be 
determined by a grand coalition, however, pointing out that a 
coalition with the Strache FPOe was no real alternative for the OeVP 
either. 
 
Charges Against Elsner Completed 
 
¶4. On Wednesday, the Justice Ministry approved the prosecutor's 
charges in the Bawag affair, removing the last obstacle for a trial 
of nine former Bawag managers, including Helmut Elsner and Johann 
Zwettler. If convicted, they face possible lengthy prison sentences 
for fraud and forgery of balances. Calculating Bawag's losses, the 
prosecution gave a tentative figure of 1.5 billion euro for which 
the managers can be held accountable. Due to the amount of material 
and documents, the trial will probably not start before the 
beginning of 2007. By then, Helmut Elsner will have been extradited 
from France. 
 
Merkel Wants EU Constitution by 2009 
 
¶5. Three months before Germany assumes the EU presidency, EU 
commission President Barroso has visited German Chancellor Merkel. 
He has called for revival of the constitution process - this tallies 
with Merkel's belief that the EU needs a constitution by the time of 
the EU elections in 2009.  Her goal is to draw up a road map for the 
future of the constitutional process in the EU, writes independent 
daily "Der Standard." The daily also refers to other projects of the 
German EU presidency:  An energy strategy for the EU and reduction 
of costs for the administration of enterprises. Centrist daily "Die 
Presse" also mentions the transatlantic ambitions of the German 
Chancellor. According to the daily, Merkel is "fascinated by a 
transatlantic free trade zone between the EU and the US"as a 
possible bulwark against the rising powers Russia and China. 
However, except for Britain, there is widespread skepticism among EU 
states of such an initiative. 
 
Plane Crashed into Skyscraper 
 
¶6. A small plane crashed into a skyscraper in New York City on 
Wednesday, setting fire to parts of the building. TV station NBC 
reports four deaths. The FBI has ruled out a terror attack. 
North Korea Threatens the US 
 
¶7. North Korea has said its decision about new nuclear tests and the 
return to the negotiation table depends on the US attitude. It has 
warned the US not to step up pressure. At the same time, France has 
voiced doubts whether North Korea really performed nuclear tests - 
the measured explosion was too weak to verify whether it was 
nuclear, said French Minister of Defense Alliot-Marie.  North Korea 
wants to return to the negotiating table once punitive measures are 
lifted, reports independent daily "Der Standard." This demand cut no 
ice with Japan, which announced stricter sanctions against the 
communist state. Japanese ports will be closed completely to North 
Korean ships and there will be restrictions on imports. Tokyo had 
already implemented financial sanctions after the missile tests in 
July. In the meantime, there is heated debate about UN sanctions 
against North Korea. China and Russia oppose adopting too tough a 
line against Pyongyang, writes semi-official daily "Wiener Zeitung." 
Negotiations are still going on - the hope is that an agreement will 
be reached by the end of the week. 
McCaw