Ministers quit Austrian cabinet

Haider has swung party members behind him

Austrian Vice-Chancellor Susanne Riess-Passer and another minister from her far-right Freedom Party have resigned from their cabinet posts prompting speculation that an early general election will be called.

Ms Riess-Passer, who is the party's current leader, resigned along with Finance Minister Karl-Heinz Grasser after the Freedom Party's former leader, Joerg Haider, led a party revolt against them.

This would have to end in an early election

Joerg Haider

Mr Haider has been at odds with his party colleagues in the coalition government over their support for suspending a tax cut to help flood relief.

Conservative Chancellor Wolfgang Schuessel, who formed the government with the Freedom Party in 2000, said on Sunday he was "not afraid" of calling an early election.

Ms Riess-Passer said that internal disputes had shaken the Freedom Party and she had no choice but to resign.

"These internal party disagreements have crippled the party and have seriously hurt the trust of the voters," she said.

"It's my view that this is the only honest way to go."

'November election'

Mr Haider is strongly opposed to the coalition government's decision to postpone a reform of the tax system due to take place in 2003.

That measure, designed to benefit low-income groups, has been championed by the Freedom Party.

Riess-Passer met Haider earlier on Sunday

But the government decided to postpone it in August because of the bill for summer flood damage, put at about six billion euros.

Ms Riess-Passer agreed with Chancellor Schuessel that the flood bill placed too big a burden on Austria's budget deficit.

Mr Haider, who led his party to electoral success in 2000 before resigning the leadership, rallied 400 party rebels behind him at a rally on Saturday before confronting the party leader at talks in Vienna on Sunday.

"This would have to end in an early election," he told the news magazine Profil.

The Austria Press Agency quoted unnamed Freedom Party sources on Sunday as saying the current government would cease work on 19 September and a new election would be held either on 17 or 24 November of this year.