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‘Ibizagate’: What you need to know about the Austrian political corruption scandal

The 'Ibizagate' political scandal is still shaking up Austrian politics three years after it broke. Here is what you need to know about it.

'Ibizagate': What you need to know about the Austrian political corruption scandal
Austria's former Vice-Chancellor and disgraced former leader of Austria's far-right Freedom Party (FPOe) Heinz-Christian Strache gives his private statement in Vienna, Austria. Photo: JOE KLAMAR / AFP

The Ibiza scandal – nicknamed Ibizagate by Austrian media – can be traced back to a meeting in 2017 on the Spanish resort island of Ibiza between Strache, then leader of the far-right Freedom Party (FPOe), and a woman posing as the niece of a Russian oligarch.

Strache was filmed promising the woman state contracts in exchange for helping his party to campaign for elections on an anti-migration, anti-Islam plank.

Strache also discussed the possibility of the woman buying Austria’s most-read tabloid, Kronen Zeitung, and making its editorial line more pro-FPOe.

He did not know the meeting was a sting and that he was being filmed.

The video surfaced in German media in May 2019 and led to the collapse of a coalition government composed of the FPOe and the centre-right People’s Party (OeVP) of Chancellor Sebastian Kurz.

What charges have been brought? 

Strache claimed in the video that several high-profile billionaires, as well as international gambling company Novomatic, had funded political parties through illegal donations to associations.

All those named by Strache deny any wrongdoing. Strache attributed what he said in the video to intoxication and claimed he may have been drugged.

So far only Julian Hessenthaler, a private detective who helped orchestrate the video, has been arrested, based on drug-related offences for which he faces 15 years in prison.

However, a judicial investigation launched after the video was released led to the seizure of mobile phones belonging to Strache and several other politicians, which opened the way for no fewer than 12 separate probes into allegations of wrongdoing.

The trial revolves around charges that Strache offered to change a law to help an FPOe donor friend of his secure public funding for his private hospital – Strache was found guilty years later.

READ ALSO: Former Austrian vice chancellor convicted over corruption

What is the crrent fallout? 

One of the investigations focuses on alleged ties between Novomatic and senior political figures. The most high-profile target is OeVP Finance Minister Gernot Bluemel, a close confidant and ally of Kurz.

It is looking into possible payments made by Novomatic to the OeVP in return for “help… with tax liability that the business was facing abroad”, according to prosecutors.

Bluemel attracted ridicule when investigators raided his home in February, right as his partner took his laptop out for a stroll with the couple’s baby.

Bluemel and Novomatic deny any wrongdoing – the Finance Minister later resigned his position, saying he wanted to go into private sector and spend time with his family.

The fall of the chancellor

Kurz and Bluemel have both also hit the headlines for allegedly helping civil servant Thomas Schmid clinch a lucrative post as head of OeBAG, a company that administers the Austrian state’s holdings in various companies.

In leaked chat messages referring to the process of setting up OeBAG, Kurz wrote to Schmid: “You get everything you want,” adding several “kiss” emojis, to which Schmid replied: “I’m so happy :-))) I love my chancellor.”

Investigators have also since discovered chats suggesting that Schmid helped write the specifications for the job he applied for.

READ ALSO: Profile: Austria’s ex-Chancellor Sebastian Kurz, the one-time ‘Wunderkind’

Kurz is also under investigation for making false statements to a parliamentary committee over the affair, an offence that can carry a prison sentence of three years. He was also implicated in an investigation over whether or not he, with the help of the Finance Ministry, bribed Austrian media to publish positive polls before his election.

After pressure from coalition partners, and the opposition, he resigned as chancellor and, weeks later, left politics altogether

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POLITICS

EXPLAINED: Why Austria does not recognise the state of Palestine

Norway, Spain, and Ireland have announced they will recognise Palestine as a state - so where does Austria stand and why?

EXPLAINED: Why Austria does not recognise the state of Palestine

The war in the Middle East has brought back some significant debate in Austria and Europe in general. When is criticism of Israel a demonstration of antisemitism? Is a two-state solution, with the recognition of Palestine as a country, the answer to end the region’s bloodshed? And where does Austria stand on the matter?

As it is, “Palestine is not recognised by Austria as a state in the sense of international law”, according to the country’s Foreign Ministry

Israel’s Prime Minister Benjamin Netanyahu has repeatedly spoken out against a separate Palestinian state, which the USA and the Europeans support in principle.

So far, there is only a Palestinian Authority (PA) with very limited state rights, which is based in the West Bank.

READ ALSO: Why conservatives in Lower Austria want to tighten citizenship rules

Which EU countries already recognise the Palestinian state?

Norway, Ireland, and Spain announced they would recognise Palestine as a state by the end of May. The three countries have already attracted a furious response from Israel, which called back its ambassadors in response.

Still, other EU countries might follow suit in hopes that the recognition would help peace negotiations in the region. Slovenia and Malta have also hinted at the imminent recognition of Palestine as a state. 

Sweden took this step ten years ago. The other nine EU states that already recognise Palestine as a state, including Hungary, Poland, Romania, Bulgaria, the Czech Republic, and Slovakia, did so when they were not yet EU members.

Around 140 out of 193 UN members recognise Palestine as a state.

Palestine, therefore, has the status of an observing non-member state in the UN. This means it can participate in meetings of the General Assembly but does not have the right to vote. Palestine has been a member of the International Criminal Court (ICC) based in The Hague for almost ten years since 2015.

Palestine cannot be recognised as a full member of the UN until a majority of the UN Security Council votes in favour.

However, the Palestinian territories are not recognised as a state by the USA, France and the United Kingdom – all three of whom are permanent members of the Security Council. They only want to agree to recognition once the conflict with Israel has been peacefully resolved.

READ ALSO: Concern grows in Austria over rise in anti-Semitic acts

What about Austria?

Austria insists on a “political process,” Kurier reported. Austria has long been a supporter of a negotiated two-state solution based on international law.

“We are deeply convinced that this is the only option that allows Israelis and Palestinians to live peacefully side by side,” Foreign Minister Alexander Schallenberg told the newspaper.

“Of course, this also requires the creation of an independent, democratic and viable Palestinian state.”

The Foreign Minister proposes further negotiations for the two-state solution. “Symbolic recognition at this point will not help the Palestinians. Rather, a sustainable solution is needed so that both sides can live in peace and security,” the minister said.

Strong ties to Israel

Austria has also, of course, been a strong ally of Israel for decades. It has repeatedly shown its support for the country and the Jewish population, a historical tie going back to the legacy of the Holocaust. 

Recently, Austria was among the few countries that voted no to a ceasefire as a United Nations resolution. 

Explaining Austria’s rare decision to take a firm stance, Chancellor Karl Nehammer of the conservative People’s Party (ÖVP) said: “A resolution in which the terrorist organisation Hamas is not named, in which the atrocities committed by Hamas on October 7th are not condemned and in which Israel’s right to self-defence, which is enshrined in international law, is not stated – Austria cannot agree to such a resolution.”

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