In Austria, both the conservative incumbent ÖVP (Austrian People's Party) and the SPÖ (Social Democratic Party) have abandoned talks on the formation of a joint government. The catalyst was a joint decision by the SPÖ, the Greens and the right-wing liberal FPÖ (Freedom Party) to instigate two parliamentary inquiries into the Austrian government's planned purchase of 18 "Eurofighter" jets, as well as potentially corrupt business deals with several major banks. The ÖVP claims the inquiries are politically motivated.

Opponents of the Eurofighter purchase, led by SPÖ leader Josef Cap, say that the €2 billion ($2.5 billion) pricetag -- is too steep, and that reconnaissance planes, not fighter jets, would be more beneficial to a neutral country like Austria. The inquiry will also investigate whether the contract with the European aeronautics consortium EADS was motivated by political and personal interests. The second parliamentary committee will examine allegations that the ÖVP's outgoing finance minister, Karl-Heinz Grasser, maintained "obscure financial ties to dubious partners," including several major banks.

On October 1, the social democratic opposition beat the conservative incumbent by a very narrow margin in parliamentary elections. With 35.3 percent of the vote for the SPÖ and 34.3 percent for the ÖVP, neither party has a majority. The result leaves only three realistic options: a so-called "grand coalition" of parties that once opposed each other, a tolerated minority government or a new election.

The left-wing Die Tageszeitung points out, using the English adjective, that "the formation of a government is now tricky," given that there is no clear majority party in the highly fragmented Austrian parliament. Due to "a lack of realistic alternatives," the daily paper sees no other way out of the crisis other than a grand coalition. The leftist paper faults the conservative ÖVP under incumbent for having "poisoned the political climate and polarized the country."

The business daily Handelsblatt likens the conduct of Austria's two biggest political parties to that of "a bridegroom who explains to his bride right before the wedding that they are going to have to get down to business." The paper dismisses the Social Democrats' assertions of governmental misconduct by their conservative counterparts. Instead, the paper says the parliamentary inquiries "are simply about settling the score with a political opponent, who at the same time is supposed to become a partner." Under these circumstances, "it only makes sense for this potential partner to not even show up" to negotiations. Taken together, the paper concludes, this all bodes badly for Austria as a place for doing business.

The Financial Times Deutschland concurs. "Basically," the business daily writes of the coalition negotiations, "neither the SPÖ nor the ÖVP are interested in success." The paper believes that the parties are intimidated by "the negative example of Germany, where a grand coalition sometimes blocks itself to the point of inaction." Austrian voters want a clear mandate -- "a majority left or right of the middle." As a solution to the deadlock, the daily paper recommends the resignation of Chancellor Wolfgang Schüssel, followed by "real concessions" by the Social Democratic Party.

The conservative Die Welt concurs: "What kind of a coalition is this supposed to be if it is already at odds before its formation?" A minority government would be a feasible alternative in the eyes of the paper -- "but the Austrian president won't support that; he regards such a constellation as too instable." The only other solution would be a new election, the paper writes, which "would at least be more honest than the current strategizing, intrigues, and manipulation."