VZCZCXRO4788
OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVI #0056/01 0102126
ZNR UUUUU ZZH
O 102126Z JAN 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5936
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 VIENNA 000056 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL AU
SUBJECT: SPO ANNOUNCES MINISTERS FOR GRAND COALITION 
 
REF: VIENNA 45 AND PREVIOUS 
 
Summary 
------- 
 
¶1.  (SBU) The SPO has presented its six ministers for the 
Grand Coalition, which President Fischer will swear in on 
January 11.  The SPO ministers, none of whom have previous 
cabinet experience, reflect a balance between key Gusenbauer 
advisors and powerful state bases.  There remains 
considerable criticism from within the SPO's own ranks 
regarding the party's compromises on key issues -- abolition 
of university fees and cancellation of the Eurofighter 
contract -- as well as the OVP's hold on key ministries 
(Foreign Affairs, Interior, Finance, and Economy). 
Gusenbauer has attempted to rebut this criticism, maintaining 
that the SPO controls ministries (Education, Social Affairs, 
and Transportation and Infrastructure) that are vital to 
Austria's future economic and social development.  Gusenbauer 
is unarguably starting from a disadvantageous position. 
However, the OVP team has lost its charismatic Finance 
Minister, Karl-Heinz Grasser, and its supreme tactician, 
Chancellor Wolfgang Schuessel.  It will need one of its 
ministers to step up to be Gusenbauer's equal.  End Summary. 
 
 
The New SPO Ministers 
--------------------- 
 
¶2.  (U) On January 10, SPO Party Chairman and 
Chancellor-designate Alfred Gusenbauer presented the future 
SPO ministers in the Grand Coalition.  The announcement came 
a day after the OVP put forward its team of seven ministers 
(reftel).  President Heinz Fischer will swear in the new 
government on January 11 and the government will present its 
program to Parliament on January 16. 
 
¶3.  (SBU) The SPO will head the following six ministries: 
 
--Defense (Norbert Darabos, SPO Co-Party Manager) 
--Justice (Maria Berger, EU Parliamentarian) 
--Social Affairs (Erwin Buchinger, Salzburg State Councilor) 
--Transportation and Infrastructure (Werner Faymann, Vienna 
State Councilor) 
--Education, Art, and Culture (Claudia Schmied, Board Member 
of Kommunalkredit Bank) 
--Womens' Affairs (Doris Bures, SPO Co-Party Manager) 
 
None of the future SPO ministers have cabinet experience. 
Darabos and Bures have broad and deep connections to the 
federal SPO through their positions as Co-Party Managers. 
Both served as key advisors to Gusenbauer.  Earlier in the 
coalition discussions, rumors circulated that Buchinger was a 
candidate to be Economy Minister, or even Finance Minister. 
Buchinger will be the SPO's symbol for a more "socially fair" 
economic policy, a primary slogan during the election 
campaign.  The SPO's choices for the ministerial positions 
reflect the need to balance the federal SPO with powerful SPO 
bases (especially the states of Vienna and Salzburg). 
Gusenbauer had also publicly committed to reserving at least 
50% of the portfolios for women. 
 
 
Internal SPO Discontent Continues 
--------------------------------- 
 
¶4.  (SBU) There continues to be substantial criticism within 
the SPO rank and file that the party negotiated away too much 
on substantive issues, as well as on ministerial portfolios. 
The SPO climbed down significantly from its initial 
negotiating position on two key issues -- cancellation of the 
Eurofighter contract and abolition of university fees. 
Students, including the Social Democratic youth organization 
have vociferously attacked the retention of the fees as a 
sell-out.  Trade unions are lukewarm about the Grand 
Coalition, especially since the OVP will control all the key 
economic ministries (Finance, Economy and Labor, and 
Agriculture).  Commentators noted that the SPO Executive 
Board voted to approve the Grand Coalition with only 75%. 
The Chairman of the Upper Austria SPO, Erich Haider, 
expressed "serious concerns with the negotiating results, 
which the OVP dictated." 
 
¶5.  (SBU) Gusenbauer has tried to fend off the criticism, 
noting the SPO will control ministries (Education, Social 
Affairs, Transportation and Infrastructure) that are key for 
Austria's future growth and development.  A poll indicates 
that a majority of Austrians support the compromise on 
university fees, which allows students to perform 60 hours of 
community service per semester in lieu of paying the fees, if 
they so choose. 
 
 
VIENNA 00000056  002 OF 002 
 
 
 
The New Opposition Speaks Out 
----------------------------- 
 
¶6.  (U) The opposition parties -- Greens, Freedom Party 
(FPO), and Alliance Future Austria (BZO) -- have criticized 
the formation of the government, all claiming that the SPO 
compromised too much with the portfolio distribution.  BZO 
Chairman Peter Westhentaler claimed that the BZO had been a 
better balancing force in the outgoing OVP-BZO government. 
Several prominent Greens, dismayed by the OVP's hold on key 
ministries and the SPO's compromises on the student fees and 
Eurofighter issues, even suggested that the Greens would 
support a minority SPO government, should the SPO decide not 
to go through with the Grand Coalition. 
 
 
Comment 
------- 
 
¶7.  (SBU) While many characterize Gusenbauer's coalition as a 
pyrrhic victory for the SPO, it is far from clear how the 
dynamics of the new government will evolve.  The OVP 
unarguably controls the "power ministries" in the Austrian 
political context.  However, the OVP ministers, with the 
exception of Agriculture Minister Josef Proell, do not 
possess the media presence of former Finance Minsiter Karl 
Heinz-Grasser or the tactical skills of outgoing Chancellor 
Wolfgang Schuessel.  Gusenbauer most likely believes that 
with Social Democrats serving as State Secretaries in several 
OVP ministries, e.g. Finance, he will somehow be able to 
monitor and weigh in on ministerial-level decisions. 
Nevertheless, with significant opposition from within the 
SPO, the Grand Coalition is starting from a difficult 
position. 
McCaw