Far-right party in Austria moves closer to power

Austria's far-right politician, Mr Jorg Haider, moved a step closer to power last night when his Freedom Party started official coalition negotiations with the conservative People's Party. Both sides said they hoped to work out a programme for government within a week and expect President Thomas Klestil to approve a new coalition.

Mr Haider's party surged into second place in Austria's federal election three months ago, but it seemed likely until last week that the People's Party would restore their coalition with the Social Democrats of the Chancellor, Mr Viktor Klima, that has governed the country for 13 years. Talks between the two mainstream parties broke down abruptly last Tuesday, and since then Mr Klima has been trying to form a minority government.

Both Mr Haider and the People's Party have ruled out supporting a minority administration, and the stage looks set for the far-right party to enter government for the first time.

Mr Haider said he would not be seeking the post of chancellor, which is likely to go to the conservative Foreign Minister, Dr Wolfgang Schussel. The far-right leader, who has won international notoriety for his xenophobic policies and remarks praising Hitler, may stay in his present job as governor of Carinthia.

Mr Haider's absence from the cabinet would help to soothe Austria's allies, many of whom are nervous about the prospect of the right-winger getting his hands on national power. Israel's justice minister said his country would withdraw its ambassador if Mr Haider joined the cabinet.

President Klestil is clearly reluctant to see the Freedom Party entering government but, as Mr Klima's bid to govern alone appears doomed, he may have little choice but to approve a right-wing coalition.

Some People's Party deputies are uncomfortable about sharing power with Mr Haider but, with opinion polls showing that fresh elections would see the conservative vote collapsing, they are unwilling to face the electorate too soon.

Participation in government would help Mr Haider to shake off his pariah status, while new elections are likely to propel his party into first place, ahead of both the conservatives and the Social Democrats.