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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: November 09, 2006 
 
 
GUSENBAUER AND SCHUESSEL TO MEET AGAIN 
 
¶1. SPOe boss Alfred Gusenbauer and Chancellor Wolfgang Schuessel 
will meet in Parliament Friday to discuss again whether there is 
still a chance for a grand coalition. In the meantime, Federal 
President Heinz Fischer has indicated he is prepared to give the two 
parties "one or two weeks" to come together. Otherwise, he indicated 
that other options, possibly a minority government or new elections, 
would have to be considered. [ORF online] 
 
SPOe CONTEMPLATES MINORITY GOVERNMENT 
 
¶2. More and more frequently, prominent Austrian Social Democrats are 
publicly considering the option of forming a minority government, if 
no grand coalition with the OeVP can be forged. Salzburg Provincial 
Governor Gabi Burgstaller, in an interview with mass circulation 
daily "Kurier," suggests establishing a minority government while 
the two investigation committees (Eurofighter, banks) are at work. A 
possible minority government would have to be tolerated by the 
Greens and the FPOe. FPOe boss Heinz-Christian Strache, however, is 
arguing for a "Swiss-style" temporary government of all parties, if 
all other options fail. [Kurier, p2, Der Standard, p1, and other 
media] 
 
EU THREATENS TO ABANDON TURKISH MEMBERSHIP NEGOTIATIONS 
 
¶3. The EU Commission progress report indirectly charges Turkey with 
a breach of contract by refusing to show any movement on the Cyprus 
issue. The Commission announced that, if Turkey does not acknowledge 
Cyprus by the end of December, there will be sanctions concerning 
the membership talks.  [Neue Kronenzeitung, p3, Kurier, p4, and 
other Austrian media] 
 
HAMAS ANNOUNCES END OF CEASEFIRE 
 
¶4. After an Israeli attack which led to 19 deaths in the town of 
Beit Hanoun in the Gaza Strip, the Israeli-Palestinian conflict has 
escalated further. European politicians expressed shock at Israel's 
action and President Bush said he hoped such an attack "will not be 
repeated." Hamas has announced revenge and is freezing negotiations 
with Fatah over formation of a unified government. [Oe1 radio 
morning news, Der Standard, p5] 
 
 
US MIDTERM ELECTION SPECIAL 
 
¶5. DEMOCRATS APPARENTLY VICTORIOUS IN SENATE AS WELL 
After their victory in the House of Representatives, the Democrats 
may have gained a majority in the Senate as well. In a tight race, 
Democrat Jim Webb of Virginia declared victory over Republican 
incumbent George Allen, who has not yet conceded defeat. It could 
take up to a week to count all the votes, according to reports, and 
a recount could further prolong the procedure. Virginia would give 
the Democrats 49 seats in the Senate of 100 altogether.  With the 
two seats won by Independents who say they will vote with them, the 
Democrats would have a majority for the first time since 1994.  [ORF 
online] 
 
¶6. ELECTION DEFEAT:  BUSH "SACRIFICES" RUMSFELD 
As a first consequence of the election debacle, US President Bush 
has decided to replace his controversial Secretary of Defense, 
Donald Rumsfeld. At a press conference, Bush said he and Rumsfeld 
agreed that "the Pentagon needs new leadership." Former CIA boss 
Robert Gates will become the next Secretary of Defense; he has to be 
confirmed by the Senate. The Iraq strategy of the Bush 
administration was a primary reason for the massive defeat, all 
media agree; Bush's decision to "sacrifice" Rumsfeld, as several 
media headline the story, is seen as an acknowledgement of this and 
as a first signal for a change of course in the administration's 
Iraq policy. [Die Presse, p1, and other Austrian media] 
 
¶7. ANALYSIS OF VARIOUS AUSTRIAN DAILIES 
 
"Neue Kronenzeitung" 
The mass circulation tabloid focuses on the resignation of Secretary 
of Defense Donald Rumsfeld and speculates on possible future changes 
in the presidential staff, referring to Secretary of State 
Condoleezza Rice as a "not uncontroversial" cabinet member. On the 
Democratic side, the future Speaker of the House, Nancy Pelosi, 
according to the tabloid, is aiming at establishing a closer working 
agreement between Democrats and Republicans to reunite "a deeply 
divided country that is exhausted from the Iraq war." 
 
"Kurier" 
 
The mass circulation daily also concentrates on Rumsfeld's 
resignation as the "first dramatic signal" that this midterm 
election has fundamentally changed the political landscape of the 
US. Of newly-nominated Secretary of Defense Robert Gates, CIA boss 
under George Bush Sr., the daily writes that he, "in contrast to 
Rumsfeld, is not an ideologue and cultivates good contacts with 
Democrats." In the future, Bush could encounter resistance not just 
from the Democrats, but also from within his own party, the daily 
warns: Because he has partly lost the religious right, his die-hard 
supporters, Bush now has to move closer to the political center. 
Immigration, at least, should not be difficult for the President - 
he already holds a more liberal position than his party's 
hardliners, says "Kurier." 
 
"Kleine Zeitung" 
The mass circulation Styrian daily analyzes the landslide victory of 
California's Governor Arnold Schwarzenegger, who won more votes than 
any other governor up for re-election. One year ago, such a victory 
seemed extremely unlikely - Schwarzenegger had suffered a serious 
defeat in a popular referendum with a conservative austerity 
package. Since then, the Governor has become more moderate and 
cooperated closely with the Democrats who have a majority in the 
California Legislature. He distanced himself from fellow Republican 
George Bush on the Iraq war and scored points on immigration and 
environmental issues. 
 
 
"Der Standard" 
Foreign affairs writer for independent daily "Der Standard" 
Christoph Winder analyzes the elction results:  "The Republicans' 
old recipes for success didn't work.  The Democrats on Tuesday 
reaped the grapes of wrath but this alone will not suffice.  They 
will have to formulate a political plan for 2008.  They have so far 
failed to come up with brilliant ideas on Iraq or on most of the 
domestic issues." 
The daily also analyzes the chances for a change of course in Iraq 
as a result of the US midterm elections. Foreign editor Gudrun 
Harrer notes that the Democrats also lack an acceptable exit 
strategy. Immediate withdrawal is no realistic alternative, since 
this would mean giving up US interests in the region. Attention is 
now focused on the bipartisan Iraq Study Group headed by Republican 
James Baker and Democrat Lee Hamilton, which is expected to 
recommend a gradual withdrawal. The question is how to prepare Iraq 
for that. Some argue in favor of a well-ordered division of the 
country, but the question is how to get a grip on security. While it 
is clear that Iraq will not become what the Republican war 
strategists envisioned in 2003, it is unclear what will happen there 
instead - and what this will mean for US interests. 
 
"Die Presse" 
The centrist daily sees the election result as a "vote on George W. 
Bush and the Iraq war," and was acknowledged as such by the 
President. The bipartisan study group headed by former Secretary of 
State James Baker could present its findings in a few weeks. The 
daily refers to speculations that the group intends to recommend 
direct talks with Syria and Iran, which would constitute a total 
turnaround from the foreign policy as practiced by the Bush 
administration so far. The democrats are meanwhile debating whether 
or not to initiate impeachment procedures against the President. 
What is certain is that an antagonistic Congress would turn the 
President into a "lame duck" for the remainder of his term in 
office. 
 
"Wiener Zeitung" 
The semi-official daily deals with the European assessment of the US 
midterm election results. Italy's Prime Minister Romano Prodi is 
convinced Bush lost the election because of the Iraq war, while the 
governing Spanish socialists welcomed the election victory of the 
Democrats and expressed the hope that "this will help change the US 
foreign policy course." A gradual US withdrawal from Iraq is also 
expected by prominent German foreign policy expert Hans-Ulrich Klose 
from the SPD. French parliamentarian Frangois Fillon, a confidant of 
Interior Minister Nicolas Sarkozy, said he was "glad" that American 
foreign policy was criticized by the American people, "because it is 
bad." John McDonnell, a leading British Labour politician, pointed 
out that the election results not only damaged Bush, but also served 
to isolate Prime Minister Tony Blair in the international community. 
In Austria, SPOe spokesman Josef Cap characterizes the election 
results as "positive," and "one in the eye" for President Bush and 
the "insensitive attitude" demonstrated by his party in view of the 
social problems in the US. 
 
"Salzburger Nachrichten" 
According to the independent daily, the lesson of this election for 
Republicans is that it is dangerous to rely entirely on its 
conservative base and neglect the political center.  The Democrats, 
too, will have to "govern from the center" - many newly-elected 
Democrats are moderate and closer to the Republicans than to their 
own party. Now, the Democrats have to look towards the future, 
writes deputy chief editor for "Salzburger Nachrichten" Viktor 
Hermann:  "For the next two years, the Democrats have the chance to 
show Americans what they can do. They can initiate positive 
legislation in Congress on the political, economic, and social 
levels. Some of these initiatives will fall victim to parliamentary 
trade-offs, some to the presidential veto, but it will still be a 
chance to present to the American voters an efficient political 
party that can claim the presidency two years from now." 
 
"Vsterreich" 
The mass circulation tabloid analyzes the overwhelming victory of 
Hillary Clinton in the New York Senate race. This triumph could 
foreshadow her future: Clinton wants to decide in the coming month 
whether to run for President in 2008. Her recent victory could be an 
excellent starting point for being the first woman to capture the 
White House, writes the tabloid. 
Phillips