AUSTRIA: Austria government collapses, snap election looms in September as Chancellor Gusenbauer says won't run again

Record ID: 216170

  • Title: AUSTRIA: Austria government collapses, snap election looms in September as Chancellor Gusenbauer says won't run again
  • Date: 8th July 2008
  • Summary: REPORTERS STANDING IN STREET OUTSIDE SOCIAL DEMOCRATS (SPOe) HEADQUARTERS ZOOM IN ON SPOe SIGN AUSTRIAN CHANCELLOR ALFRED GUSENBAUER AND ENTOURAGE WALKING IN STREET, ARRIVING FOR PARTY MEETING
  • Embargoed: 23rd July 2008 13:00
  • Keywords:
  • Location: Austria
  • Country: Austria
  • Topics: Domestic Politics
  • Reuters ID: LVAF2B9O1V22GRPR03SAP4HWKKQI
  • Story Text: Austrian chancellor Gusenbauer of the Social Democrats won't run in snap elections called for September by conservative coalition partner.
    Austria's governing coalition collapsed on Monday (July 7) and a snap election looked set for September after conservatives declared they could no longer work with the Social Democrats of Chancellor Alfred Gusenbauer.
    Accused of poor leadership and unpopular within his own ranks, Gusenbauer said he would not seek re-election as chancellor and recommended acting party chairman Werner Faymann for the job, a shuffle expected to be approved.
    The conservative People's Party demanded an early election for the sake of "clarity" in government.

    "Enough is enough. Good work in this government is no longer possible," party chief Wilhelm Molterer, who is also vice chancellor and finance minister, told a news conference.
    Should the conservatives win the next election, as polls now suggest, Austria could resume privatisations of state-owned firms including Telekom Austria and Austrian Airlines.
    A conservative-led government is also likely to continue pension and tax reforms it started during its previous reign.
    Austria's two major parties have been in a "grand coalition"
    since January 2007, after the Social Democrats edged out the incumbent conservatives in the last election. But the government has been hobbled by policy feuds over health, taxes, pensions and schools.
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