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Austrian Chancellor Kurz sees image dented as he faces investigations

Once hailed as a "wunderkind", Austrian Chancellor Sebastian Kurz has seen his carefully built image dented amid coronavirus fatigue and an investigation into whether he lied to a parliamentary committee on corruption.

sebastian-kurz-austria
Austria's Chancellor Sebastian Kurz wears a face mask as he arrives for a meeting with Bavaria's State Premier at the Bavarian State Chancellery in Munich, southern Germany, on May 11, 2021. Peter Kneffel / POOL / AFP

It should have been a good month for the 34-year-old conservative — who became the world’s youngest democratically elected leader when he first took
office in 2017 — with the lengthy virus lockdown easing.

But prosecutors announced on Wednesday that they are investigating Kurz for giving false testimony to a committee of lawmakers probing the “Ibiza-gate” scandal and other graft allegations.

READ ALSO: What you need to know about Austria’s ‘Ibiza-gate’ video

If charged, Kurz would be the first chancellor to have to face court while in office in the small Alpine EU member state of some nine million people.

Kurz himself has dismissed the allegations, saying he expects to be charged but not to be found guilty and that he is refusing to step down, slamming what he says are efforts to unseat him.

“I have said nothing that is not truthful,” Kurz told a selected group of Austrian media outlets on Thursday.

‘Kiss’ emoticons
Kurz’s party’s approval ratings already dropped to around 30 percent last month compared to a high of close to 50 percent a year ago.

Austria largely managed to keep the virus at bay during the first wave last year, but has struggled in the third wave with a lockdown since last November.

The investigation compounds Kurz’s troubles as his party’s financing and other practices have also come under the spotlight in recent months.

“It’s the most severe crisis in his chancellorship,” political analyst Thomas Hofer told AFP, adding it has “distracted” from this month’s planned re-opening of restaurants and other leisure venues.

“For Sebastian Kurz, who has been spoiled with success for a long time, it is the most delicate phase of his career,” Die Presse daily wrote in an editorial on Friday.

The investigation announced on Wednesday pertains to statements Kurz gave to a committee of lawmakers last year, in which he denied having had any influence over the appointment of the head of the OeBAG state holding company, Thomas Schmid.

However, in recent months text messages between Kurz and Schmid have come to light, including one exchange where Kurz wrote: “You get everything you
want”, adding several “kiss” emoticons, to which Schmid replied: “I’m so happy :-))) I love my chancellor”.

If found guilty of lying under oath, Kurz could face up to three years in jail.

Kurz already had to step down as chancellor once, in 2019, when his one-and-a-half-year-old coalition with the far-right Freedom Party (FPOe) fell apart because of the so-called “Ibiza-gate” scandal.

FPOe then leader and vice chancellor Heinz-Christian Strache resigned after a secretly filmed video showed him in a luxury villa in Ibiza offering public contracts to a woman he thought was a Russian oligarch’s niece.

In the aftermath, Kurz lost a no-confidence vote in parliament and fresh elections were called, where he managed to secure a strengthened mandate as disillusioned far-right voters flocked to his People’s Party (OeVP).

‘No competitor’
But Kurz’s current junior coalition partner, the Greens, who campaigned on a transparency platform, have been at pains to defend him and his allies hit by allegations of wrongdoing.

In February, the home of OeVP finance minister and Kurz ally Gernot Blümel was raided as part of a probe into possible party financing offences.

READ ALSO: Austrian minister’s home raided in casino corruption probe

“You can see a very heated atmosphere in Austria right now,” Hofer said, adding the current investigation “increases pressure on the Greens a lot”.

On an international level, too, Kurz has frequently had run-ins with other EU leaders.

In the latest row in March, Kurz raised concerns about vaccine distribution within the bloc, saying there had been a lack of transparency surrounding deals between some EU states and vaccine manufacturers.

But analysts point out Kurz’s OeVP is still firmly ahead in the polls.

“Despite the investigations, he overall remains fairly popular as a chancellor,” said Julia Partheymüller of Vienna University’s Centre for Electoral Research.

Another analyst, Peter Hajek, said “on a national level, there is not really any outstanding competitor”.

He added that Kurz could rely on his communication and crisis management skills — at least for now.

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POLITICS

Austria’s Raiffeisen Bank replaces ‘misleading’ Russia job ads

Austria's Raiffeisen Bank said on Tuesday that it was replacing job ads that contained 'misleading wording' implying the bank was expanding its operations in Russia.

Austria's Raiffeisen Bank replaces 'misleading' Russia job ads

The bank has vowed to reduce its business in Russia following Moscow’s invasion of Ukraine in 2022 but has so far not sold or spun off its Russian unit.

The Financial Times on Tuesday said it had found dozens of postings for Russia-based jobs, touting its growth plans in the country.

One of the job postings said the bank was “looking for a client manager who will attract clients,” the paper reported.

“The quotes from the job advertisements do not reflect the measures taken by Raiffeisen Bank International to date to reduce its Russian business, nor do they correspond to the further plans for the Russian business,” the bank said in a statement sent to AFP.

It added to be able to sell Raiffeisenbank Russia — the biggest Western bank still in Russia — “job positions that are necessary for functioning banking operations will continue to be filled or refilled”, but they are “not related to business growth”.

“The very few job ads which contained old and misleading wording are/will be replaced.” the bank said.

Raiffeisen Bank International said in its annual report for 2023 that it had made 2.4 billion euros ($.2.6 billion) in net profits. It paid 464 million euros in income tax in Russia.

The group announced in December an agreement with Austrian construction company Strabag, involving Russian oligarch Oleg Deripaska, who is under Western sanctions.

The deal to try to recover assets frozen in Russia before selling or spinning off Raiffeisenbank Russia has drawn the US authorities’ scrutiny.

A senior US Treasury official — in Austria in March to discuss sanctions against Russia — met Raffeisen Bank International officials in Vienna to discuss the bank’s business in Russia.

Last year, a Czech rights group filed a criminal complaint against the bank’s Czech and Austrian units, claiming the bank is financing terrorism with its activities in Russia.

Raiffeisenbank has been in Russia since 1996 and employs more than 9,000 people there.

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