Austria's 3-party govt takes office, shutting out far right

Vienna: Austria's first three-party govt since the aftermath of WWII took office on Monday, ending the country's longest-ever wait for a ruling coalition and keeping the Russia-friendly, far-right Freedom Party (FPO) out of power. Although the FPO won Sept's parliamentary election with about 29% of the vote, the eurosceptic party failed to form a workable coalition, opening the door to a centrist alternative.

When the FPO bid crumbled, the conservative People's Party (OVP), Social Democrats (SPO) and liberal Neos struck an alliance, overcoming their own earlier failure to do a deal. "Now it is about cooperation, it is about getting things done," President Alexander Van der Bellen said as he swore in the new cabinet, hinting at concerns that a three-way coalition could prove fragile.

Had the latest centrist coalition effort failed, there would have been few alternatives to a snap election, which polls suggested would have increased the FPO's share of the vote.

New govt headed by Chancellor Christian Stocker of the OVP takes office after two years of recession, and plans spending cuts and tax hikes on big business to bring Austria's budget deficit back within EU limits and avoid disciplinary proceedings from Brussels. "There is much to do," he said.

His govt plans stricter immigration rules as well as tougher punishment against extremism and "political Islam" following a knife attack by a Syrian refugee.

The FPO has called for snap polls and said it will pressure the govt throughout.

(This is a Reuters story)