Austria's vice chancellor has resigned after German media published a video that purportedly showed him offering government contracts to a woman posing as the niece of a Russian oligarch, in exchange for media coverage and political funding.

Vice Chancellor Heinz-Christian Strache, who leads Austria's far-right Freedom Party, announced he would step down on Saturday at a press conference in Vienna. Crowds stood outside the chancellor's office in anticipation of Strache's statement.

He described the incident as a "targeted political assassination."

On Friday, German news magazine Der Spiegel and daily newspaper Süddeutsche Zeitung published the calamitous video. It shows Strache sitting on a couch in a T-shirt, discussing potential deals with a Russian investor.

She proposes to buy a 50% stake in Austria's Kronen-Zeitung newspaper and Strache promises her construction contracts if she helps his political party. The group also discusses how to disguise a donation to the party through an association. Their meeting was said to have lasted six hours.

It's unclear who orchestrated the recording. The publications did not reveal their source but said a forensic video expert had verified the footage.

The video was reportedly filmed in a villa with hidden cameras on the Spanish island of Ibiza in July 2017 — just months before Austria's national election in October. Strache's party received 26% of the vote and 51 seats.

Strache told the German publications that he had done nothing illegal; that he said to the woman that Austrian laws must be followed. He said he never gave her government contracts or received donations from her.

In November 2018, Austrian retail and real estate company SIGNA bought 49% of a German media company that holds Kronen-Zeitung — marking its first investment in media.

Strache chalked the exchange up to "alcohol-induced macho talk" that was "probably trying to impress the attractive hostess," according to Deutsche Welle.

Austria's 32-year-old chancellor, Sebastian Kurz, now faces mounting calls by the opposition to hold new elections. His conservative Austrian People's Party governs the country in coalition with the Freedom Party.

The video scandal threatens to collapse the coalition government and comes a week before European Parliament elections.

In the past, Kurz has distanced himself from the Freedom Party following reports of anti-Semitism and racism. The Freedom Party was founded and first led in the 1950s by Anton Reinthaller, a former Nazi.

In recent years, the Freedom Party has built a relationship with Russia. According to the New York Times:

"Mr. Strache first met Mr. Putin in May 2007. In 2014, at least two Freedom Party members took part as election observers during the Russian referendum after the annexation of Crimea. Then in 2016, just seven months before the meeting in Ibiza took place, Mr. Strache traveled to Moscow to sign a formal cooperation agreement between the Freedom Party and Mr. Putin's United Russia party."

Johann Gudenus, another prominent Freedom Party member, was secretly filmed in the Ibiza villa meeting with Strache. That prompted calls for his resignation.

Strache said he would step down from his party leadership position, with Transport Minister Norbert Hofer to replace him.

He also vowed to take legal steps to address the video. </s> May 18 (UPI) -- Austria's Vice Chancellor Heinz-Christian Strache resigned Saturday over corruption allegations after a secret video was leaked, sparking a snap election.

The far-right minister discussed government contracts with a woman who said she was a Russian investor and niece of a Russian oligarch.

Strache allegedly offered the woman government contracts in exchange for campaign support and suggested a potentially illegal donation system for the Freedom Party he leads in the video.

The video was posted Friday in German news outlets.

Strache said he would step down as the leader of the Freedom Party that is part of Austria's ruling coalition with Chancellor Sebastian Kurz's conservative People's Party after the leaked video surfaced.

Kurz accepted his resignation, Strache said. Furthermore, later on Saturday Kurz called for a snap election as a result.

Strache said that he met the woman in Ibiza, Spain. He was embarrassed by his actions in the video, which he blamed on being "drunk" and "macho-posturing" to an "attractive hostess."

"No donations have been made to the party," because of the meeting he said, adding that he has not done "anything against the law."

The allegations were "a targeted political attack," Strache said, but he would still step down, and he owed an apology to those he "disappointed."

Strache said that transport minister Norbert Hofer will step up in his place.

The video was allegedly filmed on July 24, 2017, months before the election that brought him to power.

It's unknown who recorded the video, who set up the meeting and who filmed it. </s> Vienna, Austria (CNN) Austria's Vice-Chancellor Heinz-Christian Strache, from the far right Freedom Party, has resigned over allegations of corruption, just days before key European elections .

Germany's Der Spiegel news magazine and Süddeutsche Zeitung daily newspaper published video on Friday of Strache appearing to offer government contracts to a woman who claimed to be a Russian investor and niece of an oligarch.

During a news conference on Saturday morning, Strache denied doing "anything against the law," and labeled the allegations "a targeted political attack."

However, Strache said he wanted to "apologize to everyone I have disappointed with my behavior." He said he would also step down as head of the Freedom Party, which is part of Austria's ruling coalition with Sebastian Kurz' conservative People's Party.

The coalition is now facing its biggest crisis since it was formed in 2017. Outside the Chancellor's office in Vienna, where Kurz was due to make a statement, more than 5,000 anti-government protesters gathered, calling for fresh elections.

"I'm here's because Strache resigned and the entire FPÖ [Freedom Party] is intolerable," Florian Gantner told CNN. "The Chancellor has to react and the entire government should step down. We need a new election."

The managing director of Austria's Social Democratic Party (SPÖ) blamed Kurz for the scandal.

"He must confess to the Austrians this failure and take full responsibility for this chaos. He has brought Austria into this disastrous situation and put the stability of the country on the line," SPÖ's Thomas Drozda said in a statement.

It is not known who recorded the video or set up the meeting, which allegedly took place on July 24, 2017, on the Spanish island of Ibiza, three months before the Austrian elections.

Der Spiegel and Süddeutsche Zeitung report that the "Russian" woman offered to buy a 50% stake in Austria's Kronen-Zeitung newspaper and ensure it supported the Freedom Party.

Strache admitted to meeting the woman and described it as a "private conversation" in Ibiza. He said he was "drunk" but "no donations have been made to the party" as a result of the meeting.

"It was a typical alcohol-infused macho behavior.... With this I have hurt the most important person in my life, which is my wife," Strache said.

Kurz had accepted his resignation, Strache said. Transport Minister Norbert Hofer, who ran for President in 2016, is expected to take over from him as head of the Freedom Party.

Freedom Party politician Johann Gudenus, who was in the video translating Russian into German for Strache, also resigned on Saturday.

"With this I announce that I will retire from my position as Managing Club Chairman and as member of parliament. I will step back from all my positions within the Freedom Party of Austria," Gudenus said in a statement.

"I want to express my deep regret for the things that happened more than two years ago. I deeply regret having disappointed the trust from voters, party members and co-workers."

The Freedom Party has long been part of Austria's political landscape. Founded by former Nazis in the 1950s, it first entered government 17 years ago, the first far-right party to do so in postwar Europe.

Strache had sought to modernize the party, but accusations of anti-Semitism and Islamophobia continue to linger.

In April, a Freedom Party member and deputy mayor of Hitler's birthplace resigned after writing a "deeply racist" poem comparing migrants to rats.

According to Reuters, the Freedom Party has a cooperation agreement with Putin's United Russia party.

In a 2018 interview with the newspaper Oesterreich, Strache made his position clear.

"It is high time to put an end to these exasperating sanctions and normalize political and economic relations with Russia," he said.

Austria was also one of the few EU countries not to expel Russian diplomats in response to British allegations of Kremlin involvement in the poisoning of a former Russian spy and his daughter in the English city of Salisbury in March 2018. </s> FRANKFURT, Germany (AP) — The Latest on Austrian politics (all times local):

Austrian vice chancellor Heinz-Christian Strache says he is resigning after two German newspapers published footage of him apparently offering lucrative government contracts to a potential Russian benefactor.

Strache said Saturday in a statement before assembled journalists that he was illegally set up in a "political assassination," but added his behavior in the video was "stupid and a mistake."

The scandal has led to speculation about the future of the governing coalition between Strache's anti-immigration Freedom Party and Chancellor Sebastian Kurz's center-right People's Party.

Austria's vice chancellor Heinz-Christian Strache is expected to make a statement about his political future after two German newspapers published footage of him apparently offering lucrative government contracts to a potential Russian benefactor.

The dpa news agency reported Saturday Strache was expected to address the issue at a news conference at noon local time (1000 GMT) Saturday.

The scandal has led to speculation about the future of the governing coalition between Strache's anti-immigration Freedom Party and Chancellor Sebastian Kurz's center-right People's Party. Neither Strache nor Kurz have commented publicly.

The daily Sueddeutsche Zeitung and the weekly Der Spiegel on Friday published extracts of covert video purportedly showing Strache offering government contracts to an unnamed Russian woman if she were to buy an Austrian newspaper and support his party. </s> Austria's conservative Chancellor Sebastian Kurz has dissolved his coalition with the far-right Freedom Party after the resignation of vice-chancellor Heinz-Christian Strache amid a corruption scandal.

“Enough is enough,” Kurz told the media, listing a string of other minor scandals involving the Freedom Party, adding that he would recommend to President Alexander Van der Bellen that snap elections be held as quickly as possible.

Vice-chancellor Strache, a key figure of the European far-right, announced his resignation on Saturday following revelations that he had promised public contracts in return for help from a fake Russian backer during his campaign in the 2017 parliamentary elections.

Strache denounced what he called an illegal "targeted political attack", but said he would quit in order to avoid further damage to the government.

Germany's Der Spiegel and Sueddeutsche Zeitung released hidden video footage of a sting operation allegedly filmed at a luxury villa on the Spanish island of Ibiza, months before Austria's 2017's elections.

Strache and his Freedom Party's group leader in parliament, Johann Gudenus, are seen in duscussions with a woman purporting to be the niece of a Russian oligarch, who says she wants control of Austria's largest-circulation tabloid, the Krone Zeitung.

Strache is seen suggesting that new owners could make staff changes at the Krone and use the paper to help his Freedom Party in its election campaign. </s> Austria’s chancellor has called for an early election in the country after his vice chancellor resigned over ‘catastrophic’ hidden camera footage that showed him apparently promising government contracts to a purported Russian investor.

Vice Chancellor Heinz-Christian Strache, 49, leader of the far-right, antiimmigrant Freedom Party stepped down after the video was published by two German newspapers.

On Friday, the daily Sueddeutsche Zeitung and the weekly Der Spiegel published extracts of the video that allegedly showed Strache offering lucrative contracts to a woman posing as the niece of a Russian oligarch who said she was interested in investing large amounts of money in Austria.

The video was allegedly filmed in 2017, shortly before the election that brought Strache to power with the Freedom Party, the smaller partner in Austria’s ruling government coalition.

Strache described the sting as a ‘targeted political assassination’ that never led to any money changing hands, insisting the only crime that took place was illegally videotaping a private dinner party.

Austrian Chancellor Sebastian Kurz, leader of the coalition government’s People’s Party, has now called for an early election after Syrache’s resignation.

Mr Kurz said he would ask President Alexander Van der Bellen to set a date for a new election ‘as soon as possible’.

At a news conference late on Saturday, Mr Kurz said talks with remaining officials from the Freedom Party showed they were not willing to make the changes he felt necessary to continue the current coalition.

Mr Kurz also said a possible coalition with the centre-left Social Democrats would derail the government’s programme of limiting debt and taxes.

Mr Strache’s resignation was a black eye for the populist and nationalist forces who favour tighter European immigration policies.

It came only a few days before the May 23-26 European elections.

In his resignation statement yesterday, Strache conceded his behaviour in the video was ‘stupid, irresponsible and a mistake’.

In the video, he and party colleague Johann Gudenus are heard telling the unnamed woman she could expect lucrative construction work if she bought Austria’s Kronen Zeitung newspaper and supported the Freedom Party.

The video spanned six hours of drink-fuelled conversation in a villa on the Spanish island of Ibiza between the Austrian politicians and the woman.

Strache said he had been in a state of ‘increasing alcohol intoxication’ and had ‘behaved like a teenager’ in an attempt to ‘impress the attractive host’.

He said he had had no further contact with the woman and she did not donate to his party. He claimed to be a victim of the illegal use of surveillance equipment.

In the video, Mr Strache also appeared to suggest ways of funnelling money to his party via an unconnected foundation to circumvent Austrian rules on political donations.

The justice spokesman for the opposition Social Democratic Party, Hannes Jarolim, has asked prosecutors to look into the matter, the APA news agency reported.

Mr Jarolim reportedly claimed the statements in the video could constitute offences or attempted offences such as misuse of office, bribery and money laundering. </s> Attila Kisbenedek, AFP | In this file photo taken on May 6, 2019 Austria's Vice-Chancellor and chairman of the Freedom Party FPOe Heinz-Christian Strache gives a press conference in Budapest.

Austria’s coalition government teetered on the brink of collapse after video footage was published apparently showed Vice Chancellor Heinz-Christian Strache discussing state contracts with a potential Russian backer in return for political support.

Senior figures in the Austiran government - a coalition of Sebastian Kurz’s conservatives and Strache’s far-right Freedom Party - held a crisis meeting on Friday night.

Kurz, who has distanced himself from the far right to protect his image when lesser scandals have emerged, was due to make a statement later on Saturday. The opposition called for Strache to resign.

Even for a party used to controversy, this one appeared too big for it or the government to sit out.

“This is huge. This has to be the end of Heinz-Christian Strache,” political analyst Thomas Hofer said, adding that it was unclear whether Strache’s stepping down or a snap election was more likely.

The video was reported on Friday evening by two of Germany’s leading newspapers - weekly Der Spiegel and newspaper Sueddeutsche Zeitung - purportedly showing a meeting in Ibiza between Strache, another party official and a woman purporting to be the niece of a Russian oligarch.

The newspaper reports also said the video appeared to be a sting operation.

The footage, recorded in July 2017 - months before the election that brought this government to power - showed Strache talking to the woman.

In it, he appeared to offer to direct inflated construction contracts to a company in exchange for support for his party, though he also said he wanted everything to be done legally.

Strache did not reply to a request for comment. Reuters was not able to verify the authenticity of the footage independently, and the German newspapers did not say how they obtained it.

Strache has headed the party since 2005, bringing it back to mainstream electoral success not seen since it was led by the charismatic Joerg Haider. It secured 26 percent of the vote in 2017’s parliamentary election.

The video is also a headache for Kurz, whose party is still leading in opinion polls but far short of a majority. The only other party with enough seats for a majority is the Social Democrats, with which Kurz, an immigration hard-liner, has difficult relations.

The Freedom Party (FPO) co-chairman, Christian Hafenecker, said the party’s lawyers were evaluating the material.

Neither Strache nor the FPO ever received or granted any benefits from the persons concerned, Hafenecker said in a statement.

“Since the video was obviously recorded illegally, we are also preparing appropriate legal steps.”

Vienna prosecutors said they would study the reports and decide whether there was sufficient cause to open an investigation, a spokeswoman for the prosecutors said.

“The FPO is finished,” ran the headline in the tabloid Kronen Zeitung, which featured in the video since the woman said the oligarch wanted to buy a stake.

It remains unclear who was behind the recording. </s> BERLIN — Chancellor Sebastian Kurz of Austria and his caretaker government were ousted from power on Monday with a no-confidence vote in Parliament as the ramifications of a secretly filmed video plunged the once-stable central European country further into political chaos.

Mr. Kurz, 32, became the first Austrian leader in more than seven decades to be removed from power by his fellow lawmakers. The action came despite a gain of eight percentage points of popular support for Mr. Kurz’s conservative People’s Party in the European Parliament elections.

It has been a turbulent week for Austrian politics. Mr. Kurz’s coalition government with the far-right Freedom Party collapsed after the party’s leader, Heinz-Christian Strache, resigned as vice chancellor when a video emerged that showed him promising government contracts to a woman claiming to be a wealthy Russian in exchange for financial support.

The meeting, which was filmed in 2017 without Mr. Strache’s knowledge, appears to have been a setup. But it nonetheless raised questions about the Freedom Party’s ethics, given their leader’s apparent willingness to trade political favors for Russian black money. Prosecutors in Vienna said on Monday that they had opened an investigation into who was behind the video. </s> Image copyright Getty Images Image caption Heinz-Christian Strache was forced to resign following a video scandal

All ministers from Austria's far-right Freedom Party (FPÖ) are resigning, throwing the government into chaos.

The Freedom Party's leader Heinz-Christian Strache, who was also vice-chancellor, was forced to resign at the weekend after a video sting.

Mr Strache was filmed proposing to offer government contracts to a supposed Russian oligarch's niece.

The FPÖ threatened a mass resignation earlier on Monday if Interior Minister Herbert Kickl was also forced out.

Chancellor Sebastian Kurz had called over the weekend for Mr Kickl to be sacked, saying that as general secretary of the party he should take responsibility for the scandal.

The scandal broke on Friday when footage from 2017 was published in German media, showing Mr Strache and another FPÖ official proposing to offer government contracts to a supposed Russian oligarch's niece.

Mr Strache resigned the next day and Mr Kurz - the head of the centre-right People's Party (ÖVP) - said new elections would have to be held.

The resigning FPÖ ministers include the foreign minister and ministers for defence, transport, and social affairs. The FPÖ made up half of the country's cabinet.

The video scandal comes at a particularly awkward time for the party. Voters across the EU go to the polls on 23-26 May, in European Parliament elections widely expected to boost the numbers of far-right and other Eurosceptic MEPs.

Before the scandal broke, the FPÖ was expected to score about 20% in the European elections.

How did the scandal unfold?

It is not known who recorded the video published on Friday. Neither is it clear who set up the meeting, which allegedly took place at a villa on the Spanish island of Ibiza in July 2017 - before the FPÖ joined the new government.

The video shows Mr Strache and Johann Gudenus - another FPÖ politician - relaxing on sofas, drinking and talking to a woman who claims to be a wealthy Russian national looking to invest in Austria.

In the footage, the woman offers to buy a 50% stake in Austria's Kronen Zeitung newspaper and switch its editorial position to support the Freedom Party.

Media playback is unsupported on your device Media caption Mr Strache said he resigned because he did not want to provide a pretext for the government's collapse

In exchange, Mr Strache said he could award her public contracts, explaining that he wanted to "build a media landscape like [Viktor] Orban", a reference to Hungary's prime minister, described by critics as an authoritarian leader.

"If you take over the Kronen Zeitung three weeks before the election and get us into first place, then we can talk about everything," Mr Strache said.

Mr Strache also named several journalists who would have to be "pushed" from the newspaper, and five other "new people whom we will build up".

As part of the deal, he suggested the Russian woman "set up a company like Strabag", the Austrian construction firm. "All the government orders that Strabag gets now, [you] would get," he continues.

The political fallout

Austrian President Alexander van der Bellen called for early elections to be held in September. Chancellor Kurz said his party was "shocked" by Mr Strache's behaviour, which he called "a wrong approach to politics".

The scandal had damaged Austria's international reputation, Mr Kurz said, demanding a full investigation, saying the video might have criminal ramifications. "Anything illegal must be clarified," he said.

On Saturday Mr Kurz said this was not the first time he had had difficulties with the FPÖ.

"Even if I didn't express myself publicly at the time, there were many situations that I found difficult to swallow," he said. "After yesterday's video, I must say quite honestly: Enough is enough."

Image copyright AFP Image caption Chancellor Kurz formed a coalition with the far-right party in October 2017

Mr Kurz is now facing a vote of no-confidence is his leadership.

EU Commission spokesman Margaritis Schinas said the EU had "followed in disbelief as a leader of a political party was seen negotiating access to media and institutions, in exchange for funds from external benefactors who clearly do not have Europeans' best interests at heart".

Russia has denied any involvement. "This is an incident that has not, and could not, have anything to do with us," said President Vladimir Putin's spokesman, Dmitry Peskov.

In 2016, the FPÖ signed a long-term co-operation agreement with Mr Putin's United Russia party, including joint efforts to "instil a patriotic spirit in the younger generation".
Vice-Chancellor of Austria, Heinz-Christian Strache, steps down both as Vice-Chancellor and chairman of the Freedom Party of Austria due to an alleged corruption scandal.