Having been as implacably opposed to eurobonds as Germany, the government changed its mind once Austria's own bond spreads started rising last autumn. Shortly afterwards, Faymann departed from Austria's monetary orthodoxy when he suddenly called for the ECB to play the "leading role" in saving the euro by financing the EFSF and the ESM. Meanwhile, Spindelegger came out in support of a smaller European Commission - although Austria has always been a staunch defender of the principle that each country must have its ‘own' commissioner in Brussels.
Asked to evaluate Austria's EU policies in a recent interview, the Czech foreign minister, Karel Schwarzenberg, quipped that "I cannot comment on something that does not exist". That verdict may be unkind. But the impression persists that the current muddle results from the coalition's desperate attempt to catch the eurosceptic mood and thus stop the FPÖ's rise.
In her euro policies, Merkel is trying to keep the ‘smalls' on board. She makes a point of phoning leaders from smaller eurozone countries to discuss (some say inform them about) plans for the next summit. She met Faymann ahead of the December euro summit. She, and Sarkozy, need to do more to quell the impression that today's EU is run by a directorate of big countries, or worse, by a Berlin dictate. But the smaller countries also need to take advantage of such opportunities by presenting constructive proposals. For some, it appears easier to moan about being steamrolled by the Franco-German juggernaut than to stand up for their own ideas and interests.
Austria - with its enviable growth and unemployment rates (roughly 3 per cent and 4 per cent, respectively, in 2011, on EU data) - would be well suited to act as a spokesman for eurozone's smaller creditor countries. It could be pro-active in safeguarding the authority of the EU Commission, without which the EU cannot function well. It could use its close ties to neighbouring Germany to remind Berlin that growth-promoting strategies are needed to deal with the debt crisis.
Instead, the coalition government's lack of an EU strategy is playing into the hands of the Freedom Party: at least Strache's anti-euro message is loud and clear. Unless the two main parties come up with an attractive alternative, Austria could become the next euro country that feels compelled to veto a euro rescue plan to placate domestic voters.
