Parties agree Austrian government

Austria's main centre-left and conservative parties have reached agreement on a coalition government.

Austria's main centre-left and conservative parties have reached agreement on a coalition government.

Three months after a closely fought national election, Social Democratic leader Alfred Gusenbauer today announced a programme of government for the next four years had been agreed.

He would become chancellor in the "grand coalition", replacing conservative Wolfgang Schuessel who narrowly lost the October 1st election after over six years leading an alliance with a far-right party.

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