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Austria's far-right vice chancellor resigns after video sparks corruption scandal

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By Associated Press and Reuters and Andy Eckardt  with NBC News World News
The reports unleashed a storm of speculation in Austrian news media that Strache could be replaced in the cabinet by another Freedom Party representative -- or even that Kurz could end the current coalition and head for new elections.   -   Copyright  HELMUT FOHRINGER

Austria's Vice Chancellor, Heinz-Christian Strache, said Saturday that he is resigning after two German newspapers published footage of him apparently discussing state contracts with a potential Russian backer in return for political support.

Strache said Saturday in a statement before assembled journalists that he was illegally set up in a "political assassination," but added his behavior in the video was "stupid and a mistake."

The scandal has led to speculation about the future of the governing coalition between Strache's anti-immigration Freedom Party and Chancellor Sebastian Kurz's center-right People's Party.

The video was reported on Friday by two of neighboring Germany's leading media outlets — weekly Der Spiegel and newspaper Sueddeutsche Zeitung — purportedly showing a meeting in Ibiza between Strache, another party official and a woman purporting to be the niece of a Russian oligarch.

The two papers said the meeting, which took place months before the election that brought the Alpine nation's coalition government to power, was clearly a trap laid to compromise the two politicians, though it's unclear who was behind it.

In it, Strache appears to tell the woman she can expect lucrative construction contracts if she buys an Austrian newspaper and supports the Freedom Party.

Strache did not reply to a request for comment about the video. NBC News was not able to verify the authenticity of the footage independently, and the German newspapers did not say how they obtained it.

The Freedom Party (FPO) co-chairman, Christian Hafenecker, said on Friday the party's lawyers were evaluating the material.

"Since the video was obviously recorded illegally, we are also preparing appropriate legal steps," he said.

Vienna prosecutors said they would study the reports and decide whether there was sufficient cause to open an investigation, a spokeswoman for the prosecutors said.

"The FPO is finished," ran the headline in the tabloid Kronen Zeitung, which featured in the video since the woman said the oligarch wanted to buy a stake.