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TAGS: OPRC KPAO AU
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: March 26, 2008 
 
 
Chancellor Gets Party Approval on Compromise 
 
¶1. Chancellor Alfred Gusenbauer of the Social Democrats has received 
general approval from the SPOe party executive of his compromise 
position on tax reform at a special meeting on Tuesday. Gusenbauer 
said following the meeting that although he had not succeeded in 
bringing forward from 2010 to 2009 his proposed sweeping tax reform 
in talks with the People's Party, he could live with the deal the 
two sides had struck. Under the compromise, people on low-incomes 
would no longer have to pay unemployment insurance, which, according 
to the Chancellor, would leave around a million people in Austria 
with more money. After months of disputes, Austrian media are 
doubtful, however, the new SPOe-OeVP "coalition peace" will last. 
All media report on the coalition government's agreement on a 
compromise package containing a range of measures to ease the 
effects of inflation on Austrians. The deal is widely regarded as an 
attempt to ensure the survival of the SPOe-OeVP government, and 
includes cutting unemployment insurance for workers earning less 
than 1,100 Euros a month and bringing forward by two months next 
year's pension increases. The coalition has yet to agree on a 
capital gains tax to help finance health funds, which is supposed to 
be part of the package. In the meantime, both parties have said they 
are optimistic the government will survive until scheduled elections 
in 2010. According to ORF radio's early morning news Morgenjournal, 
some economic experts have welcomed the moves to reduce taxes on 
lower incomes. Margit Schratzenstaller from the Austrian Economic 
Research Institute said the move was "a step in the right 
direction," as incomes are highly taxed in Austria. However, the 
expert also underscored major tax reform must be undertaken in 2010. 
 
Although semi-official daily Wiener Zeitung headlines "Coalition 
settles quarrel: Snap elections off the table," and independent 
provincial daily Salzburger Nachrichten says the "little re-launch 
package has saved the coalition and the Chancellor," and 
mass-circulation tabloid Oesterreich suggests the deal, although "no 
more than tax reform light," enabled the Chancellor to "get out of a 
tight spot," Austria media are not convinced the agreement has 
solved the SPOe-OeVP government's massive problems for good. 
 
 
"No US Ambassador" 
 
¶2. ... headlines a mass-circulation provincial daily, reporting like 
several Austrian media that US businessman Charles Gargano will "not 
be the new US Ambassador in Vienna after all." The White House 
withdrew Gargano's nomination, the media say, suggesting that the 
Ambassador-designate's confirmation by the US Senate was "considered 
uncertain." 
Like several other Austrian media, centrist daily Die Presse writes 
that Austria "will have to make do without a US Ambassador for the 
time being. The White House recently withdrew the nomination of 
Charles Gargano, who was set to succeed Susan McCaw. A further 
nomination is not planned before the inauguration of the next US 
President in January 2009. 'Personal reasons' have been cited as the 
cause for the 73-year-old real estate entrepreneur's withdrawal, but 
unofficially, there have been suggestions of problems with the 
Senate's Foreign Relations Committee, which has to confirm every 
Ambassadorial nomination. Democratic chairperson Joe Biden is said 
to have let the White House know the Committee's schedule was full 
and Gargano's confirmation only had low priority. The Ambassadorship 
in Vienna is considered a reward that generally goes to supporters 
of the US President," says the Presse. Mass-circulation tabloid 
Oesterreich, mass-circulation provincial daily Kleine Zeitung, 
regional dailies Tiroler Tageszeitung and Neue Vorarlberger 
Tageszeitung also reported on the issue. 
 
 
Al Qaeda Group Sets "Final" Deadline For Austrian Hostages 
 
¶3. The militant group Al Qaeda in the Islamic Maghreb holding two 
Austrian hostages in Mali has said a new deadline of April 6 is 
final. The terrorist group holding Austrians Wolfgang Ebner and 
Andrea Kloiber are demanding a ransom and the release of Al Qaeda 
members from Tunisian and Algerian jails. The US-based Site 
Institute, which monitors Islamist web forums, is reporting that the 
al-Qaeda group has claimed the new deadline is their last ultimatum. 
Austrian media meanwhile suggest that since the two Austrians were 
not freed at the Easter weekend, "resignation is spreading among all 
parties concerned," with the realization that the issue will likely 
not be resolved quickly. 
Meanwhile, the Foreign Ministry has said it has no new information 
on the fate of Austrian Bert Nussbaumer, either, who was kidnapped 
in Iraq in 2006. Concern for Nussbaumer's safety is growing after 
the remains of some of his US colleagues kidnapped at the same time 
were recovered by the FBI. 
Exactly how many dead bodies were discovered is not clear. Quoting 
the "Washington Post" as its source, mass circulation tabloid 
"Vsterreich" speculates that there may be at least three more 
unidentified bodies. What is certain is that one of the dead bodies 
was identified as John Young, who was Nussbaumer's colleague at 
"Crescent Security" and was kidnapped together with Nussbaumer on 
November 16, 2006. The FBI issued a statement in which it condemns 
the murder of the two US citizens as a "despicable crime." It did 
not comment on the state of the dead bodies or the time of their 
death, but revealed that the location where they were found is near 
the place where the men were kidnapped. Independent daily 
"Salzburger Nachrichten" writes that US State Department officially 
informed the Austrian Foreign Ministry of the identification of two 
bodies on Monday. The Foreign Ministry immediately informed the 
family of Bert Nussbaumer of the new development. A spokesperson of 
the Ministry said it was "important to do anything that can possibly 
be done until there is clarity about the fate of Bert Nussbaumer," 
while stressing at the same time that the Ministry can only pass on 
such information that has been cleared. Senior editor for 
independent daily "Der Standard" Gudrun Harrer points out that the 
number of kidnappings of foreigners in Iraq was already decreasing 
when Nussbaumer and his colleagues were taken hostage - the worst 
year being 2004 with 149 kidnappings. The reason:  By 2006, there 
were only few remaining foreigners that could move about freely in 
the country. 
 
 
Obama Has To Pass Racism Test 
 
¶4. Austrian media continue to report extensively on the US primary 
elections where the atmosphere is heating up as the infighting in 
the Democratic camp increases. One month before the important 
primary in Pennsylvania, Obama and Clinton move increasingly towards 
a mudslinging campaign. 
A key question is how the most pressing social issue in the US - the 
race factor - will come into play, writes foreign affairs editor for 
independent daily "Der Standard," Christoph Prantner in reference to 
the current attacks on presidential hopeful Barack Obama's 
connection to his pastor Jeremiah Wright. Prantner sees as the 
underlying intention behind this campaign an attempt to paint Obama 
as just another one of "these black zealots" in the style of Jesse 
Jackson and points out that even Bill Richardson, a long-time 
supporter of Hillary Clinton has now turned his back on the "dirty 
campaigning" style of the Clintons and endorses Obama. According to 
Prantner's analysis, Clinton has so far not succeeded in finding a 
recipe for vanquishing her opponent. Her last chance now lies in 
presenting him to the influential superdelegates as someone who is a 
"Black Panther" in disguise - a candidate who is not eligible for 
the majority of Americans. In the meantime, other Austrian media 
report on Hillary Clinton's overblown account of her allegedly 
dangerous Bosnia trip in 1996 - mass circulation provincial daily 
"Kleine Zeitung" and mass circulation tabloid Vsterreich both titled 
that "Clinton is losing credibility" in her attempt to bolster her 
foreign policy record with distorted evidence. 
 
 
US Missile Parts Mistakenly Sent To Taiwan 
 
¶5. The US Defense Department accidentally shipped ballistic missile 
components to Taiwan, the Pentagon said Tuesday. In fall 2006, four 
fuses for intercontinental ballistic missiles were shipped instead 
of the helicopter batteries that Taiwan had requested, and were kept 
in a warehouse there. The Taiwanese military informed the United 
States last week about their presence on the island, and the US has 
launched an investigation into the matter. The Pentagon has said it 
is "disturbed" by what Austrian media describe as a "deeply 
embarrassing mishap" for the Defense Department, according to ORF 
online news. 
 
 
Heavy Fighting In Basra 
 
¶6. Fighting between Iraqi government troops and Shiite militias in 
Basra in southern Iraq has spread to other areas of the country. 
Some of the heaviest fighting has been around strongholds of the 
so-called Mahdi Army, whose leader, cleric Moqtada Al-Sadr, has 
called on his followers to start a campaign of civil disobedience 
across Iraq. The crackdown in Basra is being personally led by the 
country's Prime Minister Nuri Al-Maliki, who has said it is "aimed 
at cleaning up criminals, outlaws and terrorists." 
Independent daily "Salzburger Nachrichten" gives an account of 
Baghdad's military mission with the goal of freeing the city of 
Basra of militia and criminal gangs. Basra is the most important 
economic center of Iraq and has become increasingly destabilized in 
recent weeks with three big Shiite militia and 28 smaller armed and 
partially criminal gangs fighting for control of the city. Violence, 
corruption of local officials and flourishing oil smuggling was 
threatening to strangle the economic lifeline of the country. Basra 
is the center of the Iraqi oil industry as well as a strategically 
important province  - with its proximity to Iran and Kuwait. The 
Iraqi government is now trying to regain power and control in 
Basra. 
Kilner