Haider's defeated party may be asked to share power

The central figure of Austria's Freedom Party, Jörg Haider, proved himself to be as temperamental as ever yesterday by saying he was sick of politics after Sunday's elections, but the Chancellor and head of the centre-right People's Party was still considering forming a coalition with the far right-wing populists despite its sweeping victory.

After a six-hour meeting to discuss the Freedom Party's disastrous election result, slumping from 27 per cent to just over 10 per cent, the acting head, Herbert Haupt, announced that he would be prepared to go into coalition talks with the People's Party.

The elections were called early when an internal revolt resulted in the resignations of several leading party members. As Herbert Haupt was beginning his press conference yesterday, Mr Haider, the former leader and the man behind the feuding, was being whisked out of the building, refusing to comment on an earlier announcement that he was offering his resignation as Governor of the southern state of Carinthia. Mr Haider said he had "had my fill of politics" and that "when you get a result like this, you should know which decision to take".

There was also a good deal of scepticism because Mr Haider's is well known for his withdrawals and comebacks. One journalist remarked: "He's cried wolf so many times that you just don't know." By the evening, the 52-year-old was back in a position he thrives on ­ in the headlines, being called on by the party in Carinthia not to step down and receiving the national party's backing.

As Mr Haider sped out of the Freedom Party's offices in parliament, leaders of the People's Party were meeting a few blocks away to discuss the conundrum their election success leaves them in. The party gained 42.3 per cent of the vote, an increase of more than 15 per cent and the first time the party has overtaken the Social Democrats in 36 years. But Mr Schüssel has to form a coalition with the Freedom Party, Social Democrats or the Greens, although this last option is highly unlikely.

The Social Democrats increased their share of the vote by almost 4 per cent to 36.9 percent, but Alfred Gusenbauer, its leader, said yesterday that the overall result was a "clear indication" that the Social Democrats should remain in opposition. Mr Gusenbauer has not, however, ruled out going back into government with the People's Party.

A return to the so-called "grand coalition" of the centre-right and centre-left, a political constellation that has dominated post-war Austrian politics, would mean stability but could also be a return to the political stalemate that proved to be fertile ground for the rise of the anti-establishment and anti-immigration Freedom Party under Mr Haider in the late 1980s and 1990s. Mr Schüssel has not ruled out going back into a coalition with what is left of the Freedom Party.

The Chancellor is now left wondering whether to risk another term of instability at the mercy of Mr Haider's mood-swings, or return to a life of compromise in the security of the grand coalition.

European Press: From a commentary in the German daily 'Die Welt'

Wolfgang Schüssel stands at the threshold of his greatest career success. In his fight against his rivals, Austria's Chancellor has won an unprecedented victory. No Austrian party in former times has gained as many additional votes as Schüssel's. The reasons are numerous. One thing is obvious: the Chancellor is a master tactician and he pulled off what few observers thought possible. He drove Jörg Haider into isolation and he won over a big part of the Freedom Party's votes. Haider's goal – to bring down Schüssel's government and to achieve power – is finished.

Since yesterday it is clear, Schüssel, not the Social Democrats nor the European Union, have demolished Haider's career. Austria has seen a small revolution. It is not so important what kind of coalition the Chancellor forms; either way he is Austria's strongman. For Austria, it can only be good.