VZCZCXYZ0014
PP RUEHWEB

DE RUEHVI #0294/01 0381325
ZNR UUUUU ZZH
P 071325Z FEB 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 6208
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY

UNCLAS VIENNA 000294 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/AGS, INR/EU, AND EUR/PPD FOR YVETTE SAINT-ANDRE 
 
OSD FOR COMMANDER CHAFFEE 
 
WHITEHOUSE FOR NSC/WEUROPE 
 
 
E.O. 12958: N/A 
TAGS: KPAO AU OPRC
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: February 07, 2007 
 
 
New Model for Elderly Care in Planning 
 
¶1. Minister for Economy and Labor Martin Bartenstein announced he is 
planning to reform the system of care for the elderly. In an 
interview with independent daily "Der Standard," Bartenstein 
outlined a new work model for caregivers, similar to that already in 
existence for household and hospital staff. The plan would make 
two-week shifts with two caregivers legal; it would also apply to 
foreigners. The high number of foreigners working illegally as 
caregivers in Austria was a central issue in the fall elections. 
The sticking point in the new care model for the elderly is its 
cost. Although already greatly reduced - a projected 2,500 to 3,000 
as opposed to calculations based on a normal 40-hour workweek, which 
would generate costs of up to 10,000 euros a month - the sum is 
still too large for average pensioners to afford. Minister 
Bartenstein, in the interview with "Der Standard" admits that, so 
far, he has no answer to the question of financing. He pointed out 
that it was not his job to develop a model for financing the new 
proposal. Bartenstein said his Ministry had worked out a proposal to 
legalize foreign caregivers under Austrian work laws and provide 
amnesty for families that have been employing foreign caregivers. 
The Minister ctiticized financing models such as mandatory private 
care insurance because this would push up the non-wage labor costs. 
 
Gusenbauer to Meet Merkel in Berlin 
 
¶2. On Wednesday, Federal Chancellor Alfred Gusenbauer will make his 
first official trip abroad, traveling to Berlin to meet German 
Chancellor and EU Council Chair Angela Merkel, primarily to discuss 
EU issues. Gusenbauer's decision to make Berlin the destination of 
his first official visit is a break with diplomatic tradition - in 
the past it was the custom for Austrian Chancellors to travel to 
Switzerland first. 
 
Brussels Yields in CO2 Dispute 
 
¶3. The German government had originally announced its intention to 
make environmental issues a central point of its EU presidency. 
However, for the time being, German Chancellor Angela Merkel, in her 
capacity as EU Council Chair, has protested against the rigid and 
expensive plans to reduce CO2 emission in new cars as initiated by 
EU Commissioner for Environmental Issues, Stavros Dimas. The EU 
Commissioner has compromised with regard to CO2 limits - they are to 
be set at 130 grams per kilometer, as opposed to the 120 grams 
originally proposed by Dimas - starting by 2012. However, Dimas also 
pushed through an agreement making reduction of CO2 emissions 
mandatory. 
With this measure, the EU acknowledges that, so far, any attempt to 
get automobile producers to commit voluntarily to reducing the CO2 
emissions until 2008 has failed, writes centrist daily "Die Presse." 
Now, Europe's automobile producers will get additional assistance: 
the so-called "integrative approach" with more modern tires, bio 
fuels, and more environmentally friendly driving techniques to help 
reduce CO2 emissions by another 10 grams per kilometer. Germany 
remains the number one target for EU reprimands regarding 
environmental standards:  Not only is the German government opposing 
the CO2 emission guideline for cars because of the damage it will do 
to the German automobile industry, it also rejects demands for its 
domestic industry to reduce carbon dioxide emissions. Germany's EU 
Commissioner for Industry, G|nter Verheugen, is concerned that 
European enterprises could lose competitive edge on the global 
market. The industry argues that Europe has already reduced its 
emissions, while the true culprits with regard to environmental 
pollution are in Asia, reports "Die Presse." 
 
Mecca Summit: Saudi Arabia Demands Palestinian Unity 
 
¶4.  Saudi Arabian King Abdullah has called on Hamas and Fatah to 
form a government of national unity. The Palestinian summit, which 
started in Mecca on Tuesday, is seen as the last chance for 
reconciliation between the two hostile camps - and chances are 
considered fairly good. Pressure from outside is high and both sides 
seemed optimistic about formation of a government before they left 
for Saudi Arabia. King Abdullah emphasized his hope that "my 
brothers will not leave this sacred place without such an agreement 
and will swear to end the bloodshed," according to Saudi Arabian 
news agency SPA. 
Spokesman Ghazi Hammad of Hamas was quoted by independent daily 
"Salzburger Nachrichten" as saying that there is a "good chance for 
an agreement" and that all the politically controversial issues such 
as the political program of a government of national unity, the 
division of positions and the establishment of a central 
organization of all Palestinian liberation organizations will be 
discussed in Mecca. Fatah sources said that almost all differences 
have been settled in secret talks. One central point - the 
recognition of Israel's right to existence - is still pending. Hamas 
is still refusing to acknowledge Israel even indirectly. "Salzburger 
Nachrichten" reports that the actual events in the Gaza Strip did 
not give much cause for optimism. About 42 activists of each party 
have been kidnapped by the other party and are now held captive. 
Also, agreements had been announced repeatedly by representatives of 
both sides since Hamas assumed power in early 2006, but had always 
fallen through at the last minute or been disrupted by attacks of 
armed groups. Even if there were to be an agreement between the 
political leaders of the conflict parties, it would still be 
doubtful whether the militant forces would adhere to it, concludes 
the daily. 
 
US Releases Video 
 
¶5. A video showing an accidental US attack on a convoy in Iraq which 
killed a British soldier is threatening to impair US-British 
friendship. Its release comes at a time when British distrust of its 
US ally has reached an all-time high. The US had originally not 
planned to release the controversial video, but the British tabloid 
"Sun" obtained a copy and published it on the internet. The Pentagon 
then yielded to the pressure of British legal authorities and 
released the video. 
Centrist daily "Die Presse" reports that the controversial videotape 
shows a US fighter jet accidentally attacking a British military 
transport vehicle, killing 25-year-old Private Matty Hull with 
"friendly fire." In an attempt to prevent the two US soldiers 
involved from being persecuted, the US military initially refused to 
cooperate with British authorities, and kept the video under wraps. 
This incident, together with a general public feeling that the 
British are not being treated well by their US friends, has given 
rise to more pronounced criticism of US policy in Britain than has 
been uttered so far. At the end of 2006, the think tank "Chatham 
House" concluded that its closeness to the US administration had 
brought London "no tangible advantages."  The author of the study 
recommended adjustments to British foreign policy after Blair with 
the aim of creating a balance between Europe and the US. However, 
that seems improbable:  Blair's designated successor Gordon Brown 
has so far displayed an even more pronounced transatlantic 
preference than Tony Blair. 
McCaw