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Chancellor Nehammer resigns, sparking political uncertainty in Austria

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Political uncertainty has begun in Austria after the surprise resignation of Chancellor Karl Nehammer at the weekend. This step is thought to lead to the right-wing Austrian Freedom Party (FPÖ) taking control of the government for the first time.

Nehammer, a former military officer who became chancellor in 2021 after a political scandal forced Sebastian Kurz to resign, announced he would step down as leader of both the country and the centre-right Austrian People’s Party (ÖVP).

In a short video statement late on Saturday, he said his resignation as chancellor would take effect in the coming days and promised an “orderly transition.”

This decision, which comes after talks to form a tripartite centrist coalition collapsed on Friday, opens the door for the ÖVP to resume coalition talks with the FPÖ. Nehammer had opposed a coalition with the FPÖ, citing the “extremism” of its leader, Herbert Kickl.

However, this view was not shared by everyone in the ÖVP. The party’s business wing, in particular, wants the next government to introduce more aggressive reforms to stimulate the economy, which is in its second year of recession.

ÖVP officials signaled on Sunday that the party was ready for talks with the FPÖ, which won Austria’s general election in September with 29% of the vote.

After the other four parties represented in parliament refused to negotiate with the FPÖ, the FPÖ’s victory was seen as a Pyrrhic victory until Sunday.

“We are not responsible for the lost time, the chaos, and the enormous loss of trust that has been created here,” Kickl said late on Sunday. “On the contrary, it is clear that the FPÖ has been and continues to be the only stable factor in Austria’s domestic politics,” he added.

A coalition between the FPÖ and the ÖVP, which finished second in the September elections with 26% of the vote, would have a large majority in parliament.

The only question now is whether Austrian President Alexander Van der Bellen, who has the power to reject chancellor candidates, will accept Kickl as chancellor.

Theoretically, the FPÖ could field a less controversial candidate, but Kickl has made it clear that he wants the job.

If the FPÖ and the ÖVP agree to form a government and appoint Kickl as chancellor, Van der Bellen can use his veto, but this would plunge the country into a constitutional crisis.

Such an outcome would probably only increase the popularity of the FPÖ. In the latest opinion polls, the party is polling at 37%, which means that if Van der Bellen calls for a new election, the FPÖ would be even stronger.

In November, the party won an important regional election in Styria with 35% of the vote and took control of the province for the first time.

Van der Bellen is therefore more likely to take this in stride. He acknowledged this in a statement on Sunday and said he had planned a meeting with Kickl for Monday “to discuss the new situation.”

Kickl, who campaigned on the promise of becoming Volkskanzler (People’s Chancellor) and turning Austria into a “fortress” against immigration, is known for his harsh comments about foreigners and Islam.

As interior minister in 2018, for example, the FPÖ leader proposed the idea of “rounding up” refugees in special centers and ordered the refugee registration centers to be renamed “removal centers.”

Van der Bellen, former leader of the Austrian Green Party, has made no secret of his displeasure with Kickl and his party, which has sharply criticized the EU and even flirted with taking Austria out of the bloc.

After the elections in September, the President of the Republic broke with tradition and chose not to give Kickl, the leader of the strongest party, the task of forming a coalition.

The rise of the FPÖ, founded in the 1950s by a group of former Nazis who seem to have not given up on their ideas, will be the culmination of decades of evolution.

The party first came to international attention in the 1990s under Jörg Haider, who used the issue of immigration from the former Yugoslavia to mobilize voters and challenge the mainstream. By 1999, Haider had built up a strong following that propelled his party to second place in the national elections.

The FPÖ continued to enter coalitions as a junior partner of the ÖVP. The centre-right’s decision to link arms with the FPÖ was so controversial at the time that it led other members of the EU to impose “diplomatic sanctions” on Vienna. This was a symbolic gesture, which in practice meant a halt to bilateral visits.

An FPÖ-led government would be a turning point for Austria, a country whose national politics has been dominated by “centre” parties since the Second World War.

The second FPÖ-ÖVP coalition, formed in 2017 under the leadership of Sebastian Kurz, collapsed dramatically after the “Ibiza affair.”

The government collapsed 18 months after the publication of a secretly filmed video showing then FPÖ leader and Vice Chancellor Heinz-Christian Strache trying to do political favors for money to a woman he believed to be the niece of a Russian oligarch.

The footage, several hours long, was shot at a private villa on the island of Ibiza, where Strache was holidaying in the months before taking office.

The investigations that have been ongoing since then have preoccupied the Austrian justice system and played a central role in Kurz’s departure from office.

It remains to be seen whether former Chancellor Kurz will return to Austrian politics after his dramatic fall from grace.

Last February, an Austrian court found Kurz guilty of making false statements to a parliamentary commission of inquiry.

Judge Michael Radasztics gave the 37-year-old Kurz an eight-month suspended prison sentence for the serious offense of deceiving parliament under oath during the 2020 investigation into his government.

Since his resignation as chancellor, Kurz has been a consultant for Silicon Valley investor and Palantir founder Peter Thiel.

Kurz also founded a cybersecurity firm in Israel together with Shalev Hulio, co-founder of the company behind the Pegasus spyware.

On the other hand, according to Paul Ronzheimer, deputy editor-in-chief of Bild and Kurz’s biographer, Kurz does not want to return to the party, despite rumors that the ÖVP has made him an offer.

EUROPE

Likud deepens ties with European right

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The “International Conference on Combating Antisemitism”, organized by Israeli Diaspora Affairs Minister Amichai Chikli in Jerusalem on March 26-27, has sparked controversy in Europe.

Chikli, who has previously fostered relationships between Israel and his Likud party with some controversial figures, has invited individuals such as Jordan Bardella, president of the French National Rally (RN) party; Marion Marechal, a French Member of the European Parliament formerly associated with RN and Reconquête!; Charlie Weimers, a Member of the European Parliament from the Sweden Democrats party; Milorad Dodik, president of the Republika Srpska in Bosnia and Herzegovina; and Hermann Tertsch, a Member of the European Parliament from the Spanish right-wing Vox party.

Following the leak of the guest list to the press, several prominent figures expected to attend from Europe announced their withdrawal. These included the Chief Rabbi of Britain, Sir Ephraim Mirvis; British politician and antisemitism advisor Lord John Mann; Goldsmiths University professor David Hirsh; French “philosopher” Bernard-Henri Levy; and the German antisemitism commissioner, Felix Klein.

Mann told The Jewish News, “The quality of some of the dissenting politicians speaking is not high enough to make me drop competing priorities.”

Hirsh made a similar statement, saying, “The UK has nothing to learn about fighting antisemitism from these characters. The agenda includes a number of far-right speakers who associate themselves with anti-democratic and anti-equality movements.”

Hirsh argued that “anti-democratic thought is fertile ground for antisemitism” and that the best way to undermine antisemitism is to “support democratic thought, movements, and states.”

Levy, a staunch defender of Israel, was scheduled to be a keynote speaker at the event. However, the French figure told Le Monde that he had informed Israeli President Isaac Herzog that he would not attend due to the “far-right” guests.

Germany’s antisemitism commissioner, Felix Klein, told Haaretz that he was unaware of the guest list when he confirmed his participation and canceled after seeing who would be speaking at the event.

Volker Beck, a former member of the Federal Assembly, also announced his non-attendance, stating on X, “If we associate ourselves with far-right forces, we discredit our common cause; this also contradicts my personal beliefs and will negatively impact our fight against antisemitism in our societies.”

European Jewish Congress (EJC) President Dr. Ariel Muzicant also sharply criticized Chikli on Tuesday. In a letter sent to The Jerusalem Post, Muzicant said, “For 80 years, we have been fighting antisemitism, Holocaust denial, and the aftermath of the Shoah.”

Muzicant pointed out that far-right parties in Europe are the biggest opponents in this fight, stating, “Many officials and leaders of these parties have supported Holocaust denial, promoted antisemitic codes and expressions, and fought against anti-Nazi laws.”

Muzicant wrote that although some far-right politicians now claim to support Israel, “The motivation of far-right politicians to come to this conference is not love for Israel or protecting Jews, but mainly to get a kosher certificate. And we, Jews or Israelis, should not be used as a kosher certificate.”

The EJC President described the conference organized by Chikli as a major problem for Jewish communities in Europe, arguing that it harms Jewish existence in the diaspora, “as if members of the Israeli government are stabbing them in the back.”

Muzicant emphasized that far-right movements in Europe often oppose liberal democracy, the rule of law, human rights, and freedom of the press.

Knesset Aliyah [the name given to Jewish immigration to Palestine] and Integration Committee Chairman Gilad Kariv (Democrats) called on Monday for the government to abandon the practice of inviting politicians from parties with what he described as “definite antisemitic roots.”

In a letter to Prime Minister Benjamin Netanyahu and Foreign Minister Gideon Sa’ar, Kariv wrote that the invitation “constitutes a deviation from the long-standing policy of Israeli governments and the Ministry of Foreign Affairs and directly contradicts the positions and policies of the representative organizations of Jewish communities in these countries and on the international stage.”

Kariv claimed, “The invitation of these representatives is particularly shocking, considering that it concerns an international conference on combating antisemitism, which is supposed to be held under the auspices of the president and the prime minister.”

Kariv argued that “inviting representatives of extremist parties with antisemitic roots undermines the foundations of Israel, the Jewish people, and the international fight against antisemitism,” adding, “It damages the fabric of relations between the State of Israel and Jewish communities in the diaspora and may harm Israel’s strategic relations with Western allies and leading political parties.”

Kariv added, “This step weakens Israel’s leading role in the global fight against antisemitism and represents a disturbing and dangerous regression to the current and future challenges of the Jewish people, as well as many Jewish communities around the world.”

Kariv argued that even though these parties express support for Israel, they should still not be given “an international stamp of approval.”

Chikli’s open support for the European “far-right” is receiving condemnation from European countries.

In December, Romania’s Ambassador to Israel condemned Chikli for holding a phone call with presidential candidate Calin Georgescu, who praised Romanian leaders who condoned the deaths of 280,000 Jews during the Holocaust.

French President Emmanuel Macron also complained to Prime Minister Netanyahu about Chikli after he openly supported Marine Le Pen’s presidential candidacy from the National Rally in the recent elections.

In recent weeks, Chikli also attended the “Make Europe Great Again” conference in Madrid, led by the Spanish Vox party.

Chikli’s party, Likud, also joined the Conservative Political Action Committee’s (CPAC) recent meeting as an “observer member,” one of the most important platforms of the national conservative movement in the West.

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EUROPE

Germany to cut budget amid armament preparations

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Germany’s likely next conservative chancellor, Friedrich Merz, said budget cuts should be discussed during coalition talks with the Social Democrats. This statement came after the announcement of a historic armament and infrastructure spending package.

Merz, of the CDU, said the next German government would have to cut costs despite the proposed 500-billion-euro debt-financed fiscal package.

“We will have to reduce costs at the federal level, at the state level, and in local communities. The margins have not become larger,” Merz told German public broadcaster ARD.

The landmark fiscal package also includes easing Germany’s constitutional debt brake on borrowing.

The spending plan is also supported by the Social Democratic Party (SPD), which is continuing coalition government talks with the CDU/CSU after last month’s early election.

The package includes investments in defense and infrastructure. The package requires a two-thirds majority in Germany’s lower house, the Bundestag, and upper house, the Bundesrat, to pass. The package has already been approved by the Federal Assembly Budget Committee.

The Greens, who initially opposed the package, are expected to vote in favor of it because 100 billion euros have been allocated to combat climate change. Merz hopes the constitutional amendments will be adopted before the new Federal Assembly takes office on March 25.

Some members of the Federal Assembly are planning to apply to the Federal Constitutional Court in Karlsruhe to block the vote on the multi-billion-euro fiscal package scheduled for Tuesday.

Independent member Joana Cotar has filed a lawsuit with the Karlsruhe court for the second time, demanding that the vote be postponed. The Constitutional Court confirmed on Sunday that the case had been accepted.

Three members of the Federal Assembly from the business-oriented Free Democratic Party (FDP) also said they would file an emergency application with the court, arguing that there was not enough time to publicly discuss the package’s impact on society.

According to FDP financial expert Florian Toncar, the current German government, consisting of the SPD and the Greens, has failed to answer “very simple and basic questions” regarding the package.

On the other hand, Merz also said that coalition negotiations with the SPD would involve “very difficult conversations” about much-needed reforms and what he described as “possible savings in the federal budget.” Merz argued that they would have to save money.

Referring to when Germany’s new coalition should be formed, Merz said it was too early to say and added, “We have not reached the end of the discussion. We have not yet reached the point of setting a date [for the new government].”

Merz wants to be chancellor before Easter in mid-April, about 50 days after the early election.

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UK and EU discuss confiscating Russia’s frozen assets

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According to Bloomberg, officials from the UK and the European Union (EU) are exploring legal and financial avenues to confiscate Russia’s frozen assets, following its military intervention in Ukraine.

This topic is on the agenda for today’s meeting in London between UK Foreign Secretary David Lammy and EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas.

Sources speaking to Bloomberg noted that preparations for the potential confiscation of Russian assets are ongoing, despite opposition from some European countries, including Germany and Belgium.

These countries believe that seizing Russian assets could violate international law norms and affect the euro exchange rate.

The assets of the Central Bank of Russia held abroad were frozen after the start of the war, totaling over 260 billion euros.

A significant portion of the frozen assets is held in the Euroclear depository in Belgium.

The confiscation of Russia’s frozen assets has been discussed repeatedly for over three years since the start of the war.

However, so far, only the use of income from interest on these assets has been decided, and this income is being directed to support Ukraine.

EU officials have stated that there is no legal basis for the direct confiscation of the assets.

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