Karl-Heinz Grasser

Karl-Heinz Grasser (born January 2, 1969) was an Austrian politician who held the office of Austrian Minister of Finance from February 2000 to January 2007.

Early career

He was born in Klagenfurt, Carinthia, where he studied business administration at the University of Klagenfurt from 1988 to 1992. He soon joined the far rightnationalist Austrian Freedom Party and became the second deputy governor of Carinthia in 1994, but after a dispute with his mentor, Jörg Haider, he left politics to work for Magna Europe as a vice president for human resources and public relations.

Minister of Finance

However, in 2000 he returned to politics, when a coalition was formed between the Austrian People's Party and the Freedom Party. At that time, he was the youngest minister of finance ever to hold office in Austria, beating even Hannes Androsch. When the coalition broke in 2002, Grasser left his party, but, following national elections in November and the reestablishment of the coalition under the lead of a strengthened People's Party, Grasser again became minister, but this time being nominated by the People's Party.

Grasser remains a controversial figure. While supporters argue that he successfully consolidated Austria's budget deficit, critics see him as incompetent and an opportunist. Although he has recently attempted to distance himself from his past in the Freedom Party he is still seen by many as far-right leaning. Grasser's policies and philosophy as a finance minister suggest a neoliberal stance. He is a self-proclaimed follower of the Austrian School of Economics. His immaculate appearance, his smooth-talking dynamism and yuppie antics have made him hugely popular with the public. He was generally perceived as the young and competent figure needed to shake up the traditional ways of the ruling parties that were becoming increasingly unpopular.

Homepage affair

He continues to be subject to intense pressure from the opposition and the media because of the homepage affair, in which a Grasser's chief of staff set up a non-profit organization that received money from the Federation of Austrian Industry in order to create a personal website for him ( [http://www.karlheinzgrasser.at] ). Leading Austrian tax lawyers such as Professor Werner Doralt of the University of Vienna argue that the expenditure on the website should have been subject to gift tax. Other observers wonder where the money (150,000-200,000 Euro) actually went, as the website seems not to be worth the money it cost, according to reports in the media. Nevertheless, all charges against Grasser and the NPO were ultimately dropped.

Departure from Politics

Grasser announced his departure from politics [ [http://www.iht.com/articles/ap/2007/01/09/europe/EU-POL-Austria-Grasser-Resigns.php Austria's finance minister says he's quitting politics - International Herald Tribune ] ] on January 9, 2007 and will return to the private sector. Apparently he is set to become an Investment banker at Salomon Smith Barney [ [http://www.vol.at/news/oesterreich/artikel/grasser-soll-investmentbanker-werden/cn/news-20070109-03580663 Grasser soll Investmentbanker werden - Österreich - Aktuelle Nachrichten - Vorarlberg Online ] ] .

Private life

More recently, Grasser has drawn attention with his private antics that further reduced his credibility. During the Indian ocean Tsunami, Grasser was vacationing on the Maldives. He did not return to Austria immediately, claiming that the government of the Maldives had asked him to stay. However, this turned out to be a lie. Later he claimed that his extended stay was due to a lack of available seats in Austrian Airlines planes, which was immediately denied by the airline. It turned out that he had received a free upgrade to business class.

In March 2005, his relationship with the Argentinian Natalia Corrales Diez and his decision to end his engagement to her featured prominently in the tabloid press. Even before the split, there had been persistent rumors of Grasser's relationship with Fiona Swarovski, heiress to the vast Swarovski estate. Grasser had been seen kissing her at Paris Airport. On the day the photographs were taken, Grasser's fiancée, Natalia Corrales-Diez, had a car accident in Vienna driving an SUV belonging to Grasser's uncle, apparently shortly after a conversation with Grasser in a restaurant. Grasser and Swarovski made their relationship public shortly thereafter. They married on October 22, 2005 in Weißenkirchen in Wachau. They have one daughter Tara Gertrud born September 3, 2007.Early summer 2006 he had accepted a free short holiday on board a yacht belonging to a member of the Meinl family in 2005. Despite a brochure produced by his own finance ministry, encouraging ministers and staff of the ministry to be cautious when offered such invitations and free "gifts", Grasser accepted the invitation. The event may have passed unnoticed, had not W. Flöttl also been aboard the vessel, the man held by many to be responsible for the BAWAG. scandal, Austrias biggest and most expensive bank scandal of recent years. Grasser was forced to admit his acceptance to the invitation. He explained that when originally asked about his presence on board the yacht, he was "caught on the hop" and had answered quickly, and without thinking about the question.

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