THE EMPIRE STRIKES BACK -- AUSTRIA MAY DELAY EU PAYMENTS

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Austria May Delay EU Payments Mon 17 Apr 2000

VIENNA, Austria (AP) — Finance Minister Karl-Heinz Grasser is warning that Austria could delay its payments to the European Union and use its veto to hold up EU decisions unless other member nations rethink sanctions against his country, according to comments published Monday.

``Delays in payments are possible,'' Grasser told the daily Kurier, adding that veto threats made by Joerg Haider, head of Grasser's far-right Freedom Party are ``appropriate.''

Sanctions were imposed by the other 14 EU-members in February in response to the swearing in of an Austrian government half comprised of the Freedom Party. The EU says Haider's praise of aspects of the Nazi era and the party's distrust of foreigners throws its commitment to democracy into doubt.

``The EU needs Austria,'' Grasser said. ``The sanctions should be ended.''

Austria, as one of the European Union's most developed countries, pays more into the EU pot than it receives from the European Union. And because the European Union works by consensus, it could delay major decisions should it decide to use its veto.