The leader of Austria's far-right Freedom Party, Joerg Haider, has responded defiantly to the sanctions imposed on his country by the European Union.

But only a day after the installation of the new government, divisions already appear to be developing between the coalition parties.

Mr Haider, in a statement released to the Austrian Press Agency, appealed to Austrians "not to allow themselves to be disturbed by the anti-Austrian mood in foreign countries".

"This is nothing to get hysterical about," he said.

He suggested the EU would soon get used to seeing Freedom Party ministers working with what he called good policies, mastery of their briefs and proper behaviour.

He added that one of the best things about the EU was the principle of unanimity, because it meant that there need be "no worry" about the current EU line against Austria.

This appeared to be a thinly veiled threat that his group might use its veto power to block decisions at EU ministerial meetings.

However, Austria's Foreign Minister, Benita Ferrero-Waldner, immediately rejected such a move, saying there were no plans to retaliate against EU sanctions.

She said her first priority was to persuade Austria's EU partners to restore political ties.

Night of protest

Austria had earlier experienced a night of unprecedented protests against the new government in Vienna and other towns.

Police said more than 50 people had been injured during the protests - 43 police officers and 13 anti-rightist demonstrators.

The scale of the protests - which also spread to the provinces - was unprecedented in Austria.

But the BBC's Claire Doole, reporting from Vienna, says they do not reflect the mood of the country.

She says most Austrians are far angrier at the sanctions imposed by the EU than by the inclusion of Mr Haider's party in the new government.

Appeal for restraint

In an address to the nation on Friday night, Austrian President Thomas Klestil appealed to Austrians to show restraint.

He said the new government was bound by the principles of liberty, democracy and respect for human rights, and its parliamentary majority had to be respected.

"I ask all political forces in our country, all Austrians, and also our partners in the European Union and in the world to give the new federal government a chance and to judge it by its work," he said.

The new chancellor, conservative leader Wolfgang Schuessel, said he was fully aware of the mountain the new government - which contains six ministers from each party - would have to climb.

"We know it won't be easy to win the hearts of the people .. but we also know that Austria needs an effective government to introduce a courageous reform programme," he told reporters.

At the same time, Mr Schuessel described the EU condemnation as completely unacceptable. He said Austria was not a pariah state and was not giving rise to a new Hitler.

Ostracism

The other 14 EU states are imposing immediate political sanctions on Austria in an attempt to isolate the new government.

The United States and Israel have both recalled their ambassadors.

Mr Haider - best known abroad for remarks belittling the crimes of the Nazis - will not have a seat in the Austrian cabinet, but is expected to play an influential role behind the scenes.

In an interview on German television, he said it was an affront to the Austrian public that he had been obliged by President Klestil to sign a declaration undertaking to uphold democratic values and take a "self-critical" look at Austria's Nazi past.