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EU threatens Austria with political sanctions

LISBON: Austria's 14 European Union partners on Monday took the unprecedented step of threatening the country with political sanctions if the far right were allowed to join a governing coalition.

In a statement issued by EU president Portugal, Austria's allies said they would freeze all bilateral political contacts, limit the role of Vienna's ambassadors in their capitals and not back any Austrian candidacy for international organisations.

"The governments of the 14 member states will not promote or accept official contacts at a political level with an Austrian government which includes the FPO (Freedom Party)," it said.

Joerg Haider's Freedom Party is near to closing a deal with the conservative People's Party to form a coalition government. Haider has opposed the EU's enlargement plans, appeared to play down Nazi crimes and is hostile to East European immigrants.

Negotiations to form a ruling alliance followed inconclusive elections four months ago. Austria's centre-left Social Democrats headed all governments for the previous 30 years.

Alarmed at what they feared could set a precedent, opening the door to the rise to power of far-right parties elsewhere, EU countries had been debating for days how best to respond.

EU leaders including French President Jacques Chirac urged a strong reaction if Haider's group entered government. Belgian Foreign Minister Louis Michel called him a "dangerous man".

Haider, 50, lashed out at his critics over the weekend, telling them not to interfere in Austria's domestic affairs.

He branded Chirac a failure "who has really done everything wrong in recent years that could be done wrong and ultimately lost elections". The outburst brought a rebuke from Austrian President Thomas Klestil.

Portuguese Prime Minister Antonio Guterres denied the EU's warning amounted to interference in Austria's affairs and said the group was only seeking to defend values and beliefs essential to its existence.

"When (another) government does not respect these fundamental values, it is natural that it should see its actions penalised in its relations with other European governments," he told Portugal's RTP television.

Both Haider and People's Party leader Wolfgang Schuessel, Austria's outgoing Foreign Minister, who would head the new coalition, met separately with the President on Monday.

Haider would not personally join the cabinet but ministerial posts would be equally divided between the two parties.

Portugal's Foreign Minister Jaime Gama said Austria "still had time to avoid taking the wrong path".

EU rules allow for the suspension of a member state in "serious and persistent breach" of any of its main principles -- liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law.-Reuters