Austrian Media: When a Tycoon Rules Politics
By Otmar Lahodynsky
Report for the Association of European Journalists
Linz, November 2008
The Austrian media scene is rather small and has been reduced to a few big players. Media concentration is very high, especially in the print sector: The two biggest dailies, Kronen Zeitung and Kurier, are controlled by one common parent company and have – at least for a large part of the shares – the same owners. Equally, Austrian magazines are dominated by one big group, News Verlag, which publishes most magazines. German companies have bought big stakes in newspapers and magazines.
The biggest newspaper, Kronen Zeitung, which reaches more than 3 million readers daily, has a history of trying to shape or influence the national political scene. Its publisher, Hans Dichand, who also owns half the shares, likes to interfere directly in politics. In 2000, he openly opposed the new centre right government but was not successful in preventing it.
For the last couple of years, Kronen Zeitung has taken the lead in criticising the EU in a very aggressive manner. Dichand personally chooses readers' letters, preferring those with strong anti-European content. Since last year, the paper has pushed for a referendum on the Lisbon Treaty, but the government continued the normal ratification procedure in the Austrian Parliament, where the treaty was passed by a large majority.
Last July, Austrian chancellor Alfred Gusenbauer, who opposed holding a referendum before, suddenly changed his mind in an effort to come to grips with the rising opposition within his own party.
In a rather unusual step, Gusenbauer, along with his designated successor as head of the Social Democrats, Werner Faymann, wrote and signed a joint letter to Hans Dichand announcing that they would now favour holding public referenda on any future European treaties. This was a U-turn and was criticised by other media as a complete surrender of politics to the interests of an elderly newspaper tycoon.
It was revealed that he offered Austria’s foreign minister, Ursula Plassnik, favourable reports if she also would take a more critical position towards the EU, but Ms Plassnik declined to do so.* Ever since, Plassnik has faced negative reports that are often accompanied by unfavourable photographs.
In the aftermath of the letter episode the ruling coalition, which had been highly unpopular among Austrians, collapsed. Junior partner ÖVP opted for the anticipated general elections that took place in October.
Both big parties lost a lot of votes, but the Social Democrats came first again and, once again, are now negotiating a new coalition with ÖVP.
* See Ms Plassnik's letter to Mr Dichand, 30 June 2008, on the Foreign Ministry's website