BERLIN: Austrian Chancellor Sebastian Kurz said Saturday that he will step down in a bid to defuse a government crisis triggered by prosecutors’ announcement that he is a target of a corruption investigation.
Kurz, 35, said he has proposed to Austria’s president that Foreign Minister Alexander Schallenberg become chancellor. But Kurz himself will remain in a key political position: he said he will become the head of his conservative Austrian People’s Party’s parliamentary group.
Kurz’s party had closed ranks behind him after the prosecutors’ announcement on Wednesday, which followed searches at the chancellery and his party’s offices. But its junior coalition partner, the Greens, said Friday that Kurz couldn’t remain as chancellor and demanded that his party nominate an “irreproachable person” to replace him. The coalition government took office in January, 2020.
The Greens’ leader, Vice Chancellor Werner Kogler, welcomed Kurz’s decision as “a right and important step.”
“This means that we can continue our work in government,” he said.
Kurz and his close associates are accused of trying to secure his rise to the leadership of his party and the country with the help of manipulated polls and friendly reports in the media, financed with public money. Kurz, who became the People’s Party leader and then chancellor in 2017, denies wrongdoing.
The Greens said the probe created a “disastrous” impression. In a separate case, anti-corruption authorities put Kurz under investigation in May on suspicion of making false statements to a parliamentary commission, an allegation he also rejected.
Opposition leaders had called for Kurz to go and planned to bring a no-confidence motion against him Tuesday in parliament.
“We are still in a very sensitive phase in Austria — the pandemic is not yet over and the economic upswing has only just begun,” while a reform of the country’s tax system to help curb greenhouse gas emissions has been negotiated but is not yet implemented, Kurz said.
“What we need now are stable conditions,” he told reporters in Vienna. “So, in order to resolve the stalemate, I want to make way to prevent chaos and ensure stability.”
He insisted again that the accusations against him “are false and I will be able to clear this up — I am deeply convinced of that.”
Kurz said of the Greens’ demand for his replacement: “Many tell me that this is unfair and ... you can imagine that I personally would also be grateful if the presumption of innocence in our country really applied to everyone.”
He insisted that the accusations against him were being “mixed up” with old text messages that have surfaced in recent days. “Some of them are messages that I definitely wouldn’t formulate the same way again, but I am only a human being with emotions and also flaws,” he said.
Kurz will keep his party’s leadership as well as becoming its parliamentary group leader.
He responded to the demand for an untainted new leader with Schallenberg, 52. Although loyal to Kurz, Schallenberg has a background in diplomacy rather than party politics.
Schallenberg already served as foreign minister in a non-partisan interim government that ran the European Union nation of 8.9 million people for several months after Kurz’s first coalition with the far-right Freedom Party collapsed in 2019.
Kurz pulled the plug on that government after a video surfaced showing the vice chancellor and Freedom Party leader at the time, Heinz-Christian Strache, appearing to offer favors to a purported Russian investor.
Austria’s next regular parliamentary election is due in 2024.
Kurz to quit as Austrian chancellor amid corruption probe
https://arab.news/mdtpv
Kurz to quit as Austrian chancellor amid corruption probe
- Kurz said he has proposed to Austria's president that Foreign Minister Alexander Schallenberg become chancellor
- Kurz's party had closed ranks behind him after the prosecutors' announcement on Wednesday
EU leaders begin India visit ahead of ‘mother of all deals’ trade pact
- Antonio Luis Santos da Costa, Ursula von der Leyen are chief guests at Republic Day function
- Access to EU market will help mitigate India’s loss of access to US following Trump’s tariffs
New Delhi: Europe’s top leaders have arrived in New Delhi to participate in Republic Day celebrations on Monday, ahead of a key EU-India Summit and the conclusion of a long-sought free trade agreement.
European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen arrived in India over the weekend, invited as chief guests of the 77th Republic Day parade.
They will hold talks on Tuesday with Prime Minister Narendra Modi at the EU-India Summit, where they are expected to announce a comprehensive trade agreement after years of stalled negotiations.
Von der Leyen called it the “mother of all deals” at the World Economic Forum in Davos last week — a reference made earlier by India’s Commerce Minister Piyush Goyal — as it will create a market of 2 billion people.
“The India-EU FTA has been a long time coming as negotiations have been going on between the two for more than a decade. Some of the red lines that prevented the signing of the FTA continue to this date, but it seems that the trade negotiations have found a way around it,” said Anupam Manur, professor of economics at the Takshashila Institution.
“The main contentious issue remains the Indian government’s desire to protect the farmers and dairy producers from competition and the European Union’s strict climate-based rules and taxation. Despite this, both see enormous value in the trade deal.”
India already has free trade agreements with more than a dozen countries, including Australia, the UAE, and Japan.
The pact with the EU would be its third in less than a year, after it signed a multibillion CEPA (comprehensive economic partnership agreement) with the UK in July and another with Oman in December. A week after the Oman deal, New Delhi also concluded negotiations on a free trade agreement with New Zealand, as it races to secure strategic and trade ties with the rest of the world, after US President Donald Trump slapped it with 50 percent tariffs.
The EU is also facing tariff uncertainty. Earlier this month Trump threatened to impose new tariffs on several EU countries unless they supported his efforts to take over Greenland, which is an autonomous region of Denmark.
“The expediting factor in the trade deal is the unilateral and economically irrational trade decisions taken by their biggest trading partner, the United States,” Manur told Arab News.
Being subject to the highest tariff rates, India has been required to sign FTAs with other major economies. Access to the EU market would help mitigate the loss of access to the US.
The EU is India’s largest trading partner in goods, accounting for about $136 billion in the financial year 2024-25.
Before the tariffs, India enjoyed a $45 billion trade surplus with the US, exporting nearly $80 billion. To the EU’s 27 member states, it exports about $75 billion.
“This can be sizably increased after the FTA,” Manur said. “Purely in value terms, this would be the biggest FTA for India, surpassing the successful FTAs with the UK, Australia, Oman and the UAE.”










