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Austria's Haider resigns, move seen tactical

VIENNA: Austrian far-right leader Joerg Haider has unexpectedly resigned as leader of the Freedom Party, but friends and enemies alike saw the decision as a tactical move aimed at helping him become chancellor in future.

The 50-year-old populist firebrand announced late on Monday that he was handing over the party leadership to Susanne Riess-Passer, vice-chancellor in the three-week-old centre-right coalition led by conservative Chancellor Wolfgang Schuessel.

Haider said he wanted to help the new government, which has been isolated by Austria's 14 European Union partners, to function smoothly and to demonstrate that Freedom Party ministers were not simply puppets under his control.

He will remain governor of Carinthia.

"I want to make clear that I am not running away from national politics, just making a new constellation in our party leadership," Haider told a late-night news conference.

Asked if he still hoped to be chancellor one day, he replied: "I do not exclude it."

Die Presse newspaper said Haider's decision was a shrewd move which would enable him to distance himself from unpopular government decisions such as planned tax increases and to position himself for the next election, due within four years.

Thomas Prinzhorn, deputy speaker of parliament and the Freedom Party's leading candidate in last October's election, appeared to confirm this view, saying: "It is a step backwards which is necessary in order to make two solid steps forward."

It was not clear whether Haider's resignation would mean any let-up in the international pressure Austria has faced since the government was sworn in on February 4.

Austria's 14 European Union partners froze bilateral political contacts with Vienna, Israel withdrew its ambassador and the United States said it would monitor Austria closely.

Israel said it had no immediate plans to send back its ambassador to Vienna and would first analyse the implications of Haider's move.

"It certainly won't happen in a matter of hours," said Foreign Ministry spokesman Aviv Shir-On.

The United States said it would continue to keep close tabs on the situation in Austria but viewed Haider's resignation as a positive step if it allowed the Freedom Party to work better with its coalition partner.

"We will react swiftly and firmly to any statements or actions suggesting sympathy with Nazi-era policies, or that express racism, xenophobia or anti-Semitism," U.S. State Department spokesman James Rubin said.

Austria's opposition Social Democrats dismissed the resignation as a sham.

"Haider will leave his gang of amateurs in the government and pursue opposition policies from Carinthia," said new Social Democratic leader Alfred Gusenbauer.

There was no immediate reaction from Chancellor Schuessel.

Haider, best known for controversial remarks playing down the crimes of the Nazis for which he has repeatedly apologised, did not take a post in Schuessel's cabinet.

He said his resignation was intended to dispel speculation that he was pulling the strings from Carinthia. "We want to avoid the impression that members of the government are puppets being kept on a tight leash."

Asked if he was stepping down in response to international pressure over his party's presence in government, Haider replied in English: "I don't accept...outside pressure. We are accustomed to making our own decisions."

Despite pledging not to interfere with the work of the government, Haider had continued to make remarks which caused international controversy. He strongly criticised foreign governments and described the euro as a "miscarriage".

Haider had nearly tripled his party's share of the vote since becoming leader in 1986 by campaigning against immigration and the "cronyism" of the established parties and pledging to put Austria's interests first.

The Freedom Party won 27 percent of the vote in the October 3 election, edging ahead of the People's Party to come second behind the Social Democrats.

Recent opinion polls have suggested the Freedom Party could become the largest party in the next election.-Reuters