The threat by its EU partners to diplomatically isolate Vienna is unprecedented within the Union, and already last night diplomatic observers were wondering whether the precedent of interfering in the formation of a partner's government was going to come back to haunt EU leaders.
They say instinctive dislike for Dr Joerg Haider's far-right Freedom Party may have clouded judgements.
Yet, despite Portugal's insistence on issuing the statement as EU President, the Union itself is not implicated directly in the threat - nor could it be as decisions on foreign and security policy have to be taken by unanimity.
Indeed, Austria's treaty-based rights as a member to attend the many day-to-day multilateral ministerials which run EU business will not be affected.
There are, in fact, procedures since Amsterdam to suspend the EU membership rights of countries if they breach fundamental rights but EU leaders have no intention of going that far. They simply want to fire a shot across the bows of Austria which has not broken any rules. Yet the move, although limited, is remarkable nonetheless, reflecting a degree of political unity among the heads of government and state who took the decision which is surprising.
A previous attempt to treat ministers of the Italian far-right Alleanza Nationale as pariahs failed abysmally when only a handful of ministers boycotted meetings with them.
The threat is all the more surprising, some Brussels diplomats say, given evidence in polls in recent days that Dr Haider thrives on what he can portray as snubs to the Austrian people.
Dr Haider said last night his party would form a coalition government despite the threats to isolate Austria.
"The government must be formed now, it's in the state's interest," he told national television. "I find it incredible that decisions are made abroad before a government has even set out its programme and announced who will be in its cabinet."
He also called on Austrian President, Mr Thomas Klestil, to resist the threats. "If the president and the parties allow themselves to be influenced by foreign attempts to pressure us, we can wave goodbye to democracy in this country." The US government yesterday gave a muted response to the possibility that the Freedom Party could join Austria's government. "The choice of a government, obviously, is one for the Austrians to decide," said US State Department spokesman Mr James Rubin.
"We have had a close relationship, based on Austria's commitment to pluralism, tolerance and democratic principles. If the Freedom Party were to enter the government, we would expect that party to live up to the commitment that I described of those principles. This is something we will follow very, very closely."
Additional copy by AFP
