Preparations are being made in Austria for the swearing in of a new government that includes the far-right Freedom Party led by Jeorg Haider (1100 GMT).

The incoming government faces immediate sanctions by its European Union partners and Israel in protest at the composition of the coalition.

Israel, conscious of Mr Haider's past comments praising aspects of Nazism, has led the protests, recalling its ambassador to Vienna.

The European Union said measures to isolate Austria would be implemented as soon as Freedom Party ministers were sworn in.

The US has expressed deep concern, while also dismissing a pledge signed by the coalition partners - The Freedom Party and the conservative People's Party - to uphold democratic values.

Russia also expressed concern on Friday, saying it hoped Austria's new government would not take measures that might destabilise Europe.

In Vienna, anti-Haider groups have threatened to take to the streets as the government is being sworn into office. But Mr Haider has told the French Le Figaro newspaper that the furore over his party's rise to power will blow over once his ministers show their worth.

And in an interview on German television, he said it was an affront to the Austrian public that he had been obliged by President Thomas Klestil to sign a declaration accepting Austria's responsibility for its Nazi past.

Mr Haider added: "I have no intention to wander about in the world and apologise for all kinds of things."

Mr Haider will not himself have a seat at the Austrian cabinet but, as leader of the Freedom Party, is certain to play an influential role behind the scenes.

The president approved the new coalition on Thursday, but only after refusing to allow two of the Freedom Party's nominated members a place in the cabinet.

One was said to have been rejected for making xenophobic statements; the other for threatening the president with a "a bloody head" if the coalition was not approved.

Division of power

Mr Haider's party will provide the ministers for justice, finance and social affairs. It will also get the vice-chancellorship.

But the People's Party will have the foreign ministry and with it, the job of repairing Austria's damaged reputation abroad.

Benita Ferrero-Waldner, who was secretary of state at the foreign ministry in the outgoing government, is understood to have accepted the position.

As well as recalling its ambassador, Israel has also said Mr Haider will not be allowed to visit.

Israeli Prime Minister Ehud Barak said: "We must arouse world public opinion so that the events of 50 years ago do not recur."

Portugal ,which holds the rotating presidency of the EU, has outlined unprecedented measures set to be taken against Austria.

Portuguese Prime Minister Antonio Guterres said all the other 14 member states would stop bilateral talks with Austria and Austrian ambassadors in EU capitals would be excluded from most engagements.

The Belgian Government has gone as far as to say that Austria is not needed in the EU, while France has indicated that further measures could be taken if necessary.

US State Department spokesman James Foley said: "We are going to be watching very, very closely how events unfold.

"I think it's fair to say that Austria will be under an international microscope in the coming days, weeks and months."

Austria's president has also expressed reservations about the Freedom Party taking on cabinet positions, but he has also said he has to uphold the electoral will of the people.

After the general election last October the Freedom Party had the second largest number of seats in parliament.