Chaos ensues in Austrian political scenario after Strache sting operation

Austria's two ruling parties descended into squabbling on Monday over how to muddle through until an early election after a video sting felled the leader of the far right and raised questions about whether its democracy had been corrupted. Conservative Chancellor Sebastian Kurz called off his coalition with the far-right Freedom Party (FPO) on Saturday after its longtime leader Heinz-Christian Strache was caught in the apparent sting operation offering to fix state contracts for a woman posing as a Russian oligarch's niece.

German media published the video on Friday, a week before a European Parliament election and a year and a half after Austria once again became the only Western European country with far-right cabinet ministers. It has since been joined by Italy. The video showed Strache meeting the woman in 2017, shortly before the election that brought him into government. So far, nothing has come to light suggesting how or why the two news outlets came to publish it now.

In the footage, Strache discussed rules on party financing and how to work around them. Describing the footage as "targeted political assassination", he said he has done nothing illegal and never met the woman again. Niki Fellner, the editor in chief of the Oesterreich tabloid newspaper, said by openly discussing what he called corruption and dirty tricks, Strache had tarnished Austria's image: "From Germany to Hungary, we are seen as of now as a banana republic."

With a snap election now expected in September, attention turned to what to do until then. Kurz sought to oust far-right Interior Minister Herbert Kickl, arguing he could not oversee an investigation into the sting that snared his party leader.

Kickl, one of Austria's best-known politicians, accused Kurz of attempting a power grab for his OVP party. The FPO said all its other ministers would resign in unison if he was forced out. "This ministry was for many ... years the linchpin of the engine of a ruthless OVP power system in this republic," Kickl said, adding that for Kurz: "It, therefore, had to come back under the OVP's control, no matter the cost."

His position is especially sensitive given the FPO's ties to Russia. It has a cooperation agreement with Russian President Vladimir Putin's United Russia party. INVESTIGATIONS

An opposition lawmaker said last month that British and Dutch spy agencies had heavily restricted the amount of intelligence they share with Austria, mainly because of ties between the FPO and Russia. The government does not comment on intelligence matters. The Kremlin on Monday denied any involvement in the videotape scandal.

The tug of war in government epitomises mainstream European parties' efforts to curb the rise of populist and nationalist forces ahead of European Parliament elections that could win them record gains. With an opinion poll showing Kurz's conservatives could boost support to 38% in the next national vote from 32% in 2017, he urged voters not to support the far right or left in Sunday's European vote.

Kurz has pledged a full investigation and accused the FPO of being unwilling to come to grips with its role in an affair that has damaged the country's reputation. "I am in contact with the president and we share the opinion that all suspicions must be cleared up entirely, some of which may be of criminal relevance, and some of which may not be but which are still morally reprehensible," Kurz told reporters.

Strache said the meeting never led to any money changing hands. He insisted the only crime that took place was illegally videotaping a private dinner party. New FPO leader Norbert Hofer, a longtime ally of Strache's, pledged an investigation into the party's finances while saying Strache's behaviour was unacceptable.

Kickl has been the most controversial minister in the government, not least because during his tenure police raided the offices of the country's main intelligence service, the Federal Office for the Protection of the Constitution and Counterterrorism (BVT), which he oversees. Opposition politicians have accused hardliner Kickl of trying to arrange a purge of the BVT's ranks, which he denies.