Austrian liberals' vote removes last obstacle to coalition government

By Francois Murphy

VIENNA (Reuters) -Members of Austria's liberal Neos party on Sunday voted overwhelmingly in favour of a coalition deal with the conservative People's Party (OVP) and Social Democrats (SPO), paving the way for their three-party government to take office.

The vote was the last remaining obstacle to the planned alliance. The government is due to be sworn in on Monday at 11 a.m. (1000 GMT), five months after a parliamentary election the far-right Freedom Party (FPO) won with around 29% of the vote.

It will end the longest wait for a government in Austria since World War Two. The same centrist parties initially tried to form a coalition government without the FPO but that bid collapsed in January. The eurosceptic, Russia-friendly FPO then led an effort that failed last month.

The centrist alliance excluding the FPO was one of few remaining alternatives to a snap election that opinion polls suggest would have increased the FPO's lead over other parties.

"Thank you! Work begins tomorrow!" Neos leader Beate Meinl-Reisinger told the meeting of her party's members in Vienna moments after 94% of them voted in favour of the 200-page coalition agreement, clearing the hurdle of two thirds needed.

Had they not backed it, the OVP and SPO would have been left with a majority of just one seat in the lower house, which is widely seen as impractically narrow.

"I have asked myself what democracies are worth if no-one can reach out their hand anymore," Meinl-Reisinger said in a speech before the vote, referring to the months of negotiations and compromises made in different coalition talks.

The party's priorities include cutting state spending and eliminating red tape, and the government programme includes measures such as pension reform, long a top issue for Neos, a party that has never been in national government.

"We have a responsibility, each of us (to build) a liberal democracy," she said, ending her speech with the call: "Let's make history today."

The three centrist parties came second, third and fourth in September's election. As the party with the most votes, the OVP will lead the government, with OVP leader Christian Stocker becoming chancellor. It will also control the interior and defence ministries.

The SPO will control the finance ministry for the first time in 25 years as well as heading the justice ministry. The Neos will run foreign affairs and education.

(Reporting by Francois Murphy; Editing by David Holmes)