French Presidency of EU announces end to sanctions on Austria

Diplomatic sanctions imposed on Austria by its 14 EU partners have been lifted, the French Presidency of the EU announced last night.

"The measures put in place by the 14 were useful. They can now be lifted," said a joint statement released in Paris which was "very much welcomed" by the Taoiseach, Mr Ahern. He "now looked forward to strengthening Ireland's close relationship with Austria".

The sanctions, largely symbolic, were imposed in February in protest over the inclusion in coalition of the populist Freedom Party (FPO), dominated by the Carinthia state governor, Mr Jorg Haider. Their lifting comes in the wake of a report by three "wise men" - Mr Martti Ahtisaari, Dr Jochen Frowein and Mr Marcelino Oreja - on the Austrian government's democratic credentials and the evolution of the FPO.

The joint statement last night added that the FPO remained cause for serious concern and that the 14 partners believed it was necessary to maintain "especial vigilance" on both the party and its influence.

Austria's Chancellor Wolfgang Schussel described the decision as "a great success for Austria". Earlier, he rejected suggestions by the wise men that the sanctions had encouraged his government to behave better than it might have otherwise.

The decision ends an uncomfortable time for the EU. It was the first time in which memberstates had acted collectively to isolate a partner, albeit through bodies outside the EU institutions, and Austria had not taken its medicine quietly, alleging that its rights as a member had been undermined. The sanctions rallied support to the Austrian coalition government, though, significantly, not to the FPO.

The ripple effect was also being felt in the Danish euro referendum in Denmark. With some justice it was claimed that the same treatment would never have been meted out to France or Germany, two of the strongest advocates of sanctions.

But the problems have not gone away. Enlargement may bring with it some strange, scarcely democratic coalitions. Then there are the elections in Italy where the extremist Lega Nord may end up propping up a Berlusconi government. And in Belgium, where the far-right Vlaams Blok threatens to extend its influence.

There is now growing pressure to find some alternative way of dealing with such problems. There are proposals before the Inter-Governmental Conference from both the Belgians and Austrians for new procedures to establish when member-states are, in the words of the treaty, in "serious and persistent" breach of their obligations. At that stage the Union itself can take sanctions.