Austrian govt talks hit snag over jet fighters

VIENNA, Oct 30: Austria's conservatives have said they would reconsider talks on forming a coalition government if the Social Democrats support the establishment of a parliamentary probe today on the former government's purchase of jet fighters.

Acting Chancellor Wolfgang Schuessel, who lost the country's October 1 election, said it would be a breach of trust if the centre-left Social Democrats voted to set up the probe during parliament's inaugural session today.

''That this cannot remain without consequences is obvious,'' Schuessel said at a news conference late yesterday after a meeting of his People's Party's deputies.

''I will call a meeting of the People's Party's board tomorrow evening so that we can discuss the consequences of such a breach of trust by the Social Democrats -- should it indeed happen -- for the continuation of the coalition talks,'' he said.

Schuessel and Social Democrat leader Alfred Gusenbauer have been holding negotiations on forming a ''grand coalition'' but have yet to discuss the most controversial issues of tax, welfare, education and health reform.

The Social Democrats won a surprise victory in the election but do not have an absolute parliamentary majority.

Schuessel, who for the past six years governed with the support of right-wing populist Joerg Haider, has shown great scepticism that a coalition with Gusenbauer can work and singled out the jet fighter issue as the main stumbling block over the weekend.

Schuessel's government agreed in 2002 to buy 18 jet fighters for 2 billion euros from the Eurofighter consortium led by EADS.

The then opposition Social Democrats have criticised the purchase as too expensive and have long demanded a parliamentary investigation into how the decision was made.

The Social Democrats, the leftist Greens and the hard-right Freedom Party, all critical of the deal, have said they would use their majority to push through the probe today.

Schuessel said it was unfathomable how the Social Democrats could team up with the small parties to start the probe against his outgoing government while at the same time talking to him about forming a new administration.

The Social Democrats say the parliamentary probe has nothing to do with the government talks.

REUTERS