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{{Short description|Austrian politician (born 1969)}}
{{BLP sources|date=January 2008}}
{{BLP sources|date=January 2008}}
{{Infobox politician
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| name = Karl-Heinz Grasser
| image = Karl-Heinz Grasser Photo.jpg
⚫
| birth_name = Karl-Heinz Grasser
| caption = Grasser in 2004
| office = [[List of Ministers of Finance (Austria)|Minister of Finance]] of [[Austria]]
| term_start = February 2000
⚫
| term_end = January 2007
| spouse = {{marriage|[[Fiona Swarovski]]|2005}}
| children = 1
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}}
'''Karl-Heinz Grasser''' (born 2 January 1969) is a former [[Austria]]n politician ([[FPÖ]] at first and later associated with but never officially a member of the [[ÖVP]]), who held the office of Austrian [[List of Ministers of Finance (Austria)|Finance Minister]] from February 2000 to January 2007 as a member of the two subsequent governments of [[Wolfgang Schüssel]]. For some time, Grasser was some kind of a [[jet set]] person after marrying Fiona Swarovski, the heir of the [[Swarovski]] crystal manufacturers in Tyrol, Austria. While at the time praised by many for, in Grasser's words "consolidating Austria's budget",<ref>{{Cite web |last=josef.votzi |date=2018-03-21 |title=Ein Kassasturz, der (noch) nicht wehtut |url=https://kurier.at/meinung/ein-kassasturz-der-noch-nicht-wehtut/400009059 |access-date=2024-09-19 |website=kurier.at |language=de}}</ref> he has since then been known for his involvement in major corruption scandals. In 2020, Grasser was sentenced to 8 years in prison for corruption.<ref>{{Cite web |title=Buwog-Urteil: Generalprokuratur empfiehlt Bestätigung des Grasser-Schuldspruchs |url=https://www.derstandard.at/consent/tcf/story/3000000221719/buwog-urteil-generalprokuratur-empfiehlt-bestaetigung-des-grasser-schuldspruchs |access-date=2024-09-19 |website=DER STANDARD |language=de-AT}}</ref>


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== Early career ==
'''Karl-Heinz Grasser''' (born January 2, 1969) is a former [[Austria]]n politician ([[FPÖ]] member at first, later associated with, but never officially a member of, the [[ÖVP]]) who held the office of Austrian [[Minister of Finance]] from February 2000 to January 2007 as a member of the two subsequent governments of [[Wolfgang Schüssel]]. While at the time praised by many for consolidating Austria´s budget, he has since then been known for his alleged involvement in major corruption scandals. For some time, he was also some kind of a [[jet set]] person after marrying Fiona Swarovski, heir of the [[Swarovski]] crystal manufactury.

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==Early career==
He was born in [[Klagenfurt]], [[Carinthia (state)|Carinthia]], where he studied [[management|business administration]] at the [[University of Klagenfurt]] from 1988 to 1992. He soon joined the far right nationalist [[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 International|Magna]] Europe as a vice president for [[human resources]] and [[public relations]].
He was born in [[Klagenfurt]], [[Carinthia (state)|Carinthia]], where he studied [[management|business administration]] at the [[University of Klagenfurt]] from 1988 to 1992. He soon joined the far right nationalist [[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 International|Magna]] Europe as a vice president for [[human resources]] and [[public relations]].


==Minister of Finance==
== 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. When the coalition broke up in 2002, Grasser left his party, but after national elections in November and the reestablishment of the coalition under the lead of a strengthened People's Party, Grasser again became minister, this time being nominated by the People's Party.
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. When the coalition broke up in 2002, Grasser left his party, but after national elections in November and the reestablishment of the coalition under the lead of a strengthened People's Party, Grasser again became minister, 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 [[opportunism|opportunist]]. 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.
Grasser remains a controversial figure. While supporters argue that he successfully consolidated Austria's [[budget deficit]], critics see him as incompetent and an [[opportunism|opportunist]]. 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 his [[yuppie]] antics have made him hugely popular with the public.


During the early year of his tenure as finance minister, 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. From early on in Grasser's tenure as Finance Minister there have been recurring suspicions of backroom deals between Grasser and some of his political and business friends. The first major case was the affair behind the financing of Grasser's personal homepage in 2004.<ref>Hans Rauscher 2011. http://derstandard.at/1295570595183/OeFB-Grasser--Co-sollen-Nationalrat-um-eine-Million-getaeuscht-haben</ref>
During the early year of his tenure as [[List of Ministers of Finance (Austria)|Finance Minister]], 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. From early on in Grasser's tenure as Finance Minister there have been recurring suspicions of backroom deals between Grasser and some of his political and business friends. The first major case was the affair behind the financing of Grasser's personal homepage in 2004.<ref>Hans Rauscher 2011. http://derstandard.at/1295570595183/OeFB-Grasser--Co-sollen-Nationalrat-um-eine-Million-getaeuscht-haben</ref>


==Corruption allegations==
== Corruption trials and conviction ==
Meanwhile, in January 2011, new and continuing investigations by Austrian District Attorneys into suspicions of kickback schemes and backroom deals[http://derstandard.at/1295570585781/Uebersiedlung-des-Linzer-Finanzamts-in-den-Terminal-Tower-Grasser-soll-oeffentlich-gelogen-haben] and, in certain cases, alleged manipulation of federal spending figures to syphon money to his allies[http://derstandard.at/1295570595183/OeFB-Grasser--Co-sollen-Nationalrat-um-eine-Million-getaeuscht-haben] have brought Grasser in front of the Austrian media once more. These reports have been spearheaded by the Vienna City weekly ''[[Falter|Der Falter]]''.[http://www.falter.at] More details on the allegations can be found on [[:de:Karl-Heinz Grasser#Homepage-Affäre|Wikipedia in German]]. Grasser maintains his innocence on all counts.
Meanwhile, in January 2011, new and continuing investigations by Austrian district attorneys into suspicions of kickback schemes and backroom deals<ref>{{Cite web|url=http://derstandard.at/1295570585781/Uebersiedlung-des-Linzer-Finanzamts-in-den-Terminal-Tower-Grasser-soll-oeffentlich-gelogen-haben|title=DerStandard.at}}</ref> and, in certain cases, alleged manipulation of federal spending figures to syphon money to his allies<ref>{{Cite web|url=http://derstandard.at/1295570595183/OeFB-Grasser--Co-sollen-Nationalrat-um-eine-Million-getaeuscht-haben|title = DerStandard.at}}</ref> have brought Grasser in front of the Austrian media once more. These reports have been spearheaded by the [[Vienna]] weekly ''[[Falter|Der Falter]]''. More details on the allegations can be found on [[:de:Karl-Heinz Grasser#Homepage-Affäre|Wikipedia in German]]. Grasser maintains his innocence on all counts.


Regardless of the outcome of the large number of court cases filed by district attorneys against Grasser and by Grasser against individuals), it seems clear that his public image as the "new-and-squeaky-clean" politician of a new era has been tarnished once and for all. After Green MP Gabriela Moser and ''Falter'' published transcripts of police recordings of Grasser's telephone conversations with one of his friends, Walter Meischberger, in which Meischberger could not describe the services for which he was paid hundreds of thousands of euros by the Porr construction company,[http://www.austriantimes.at/news/General_News/2010-12-22/29284/Phone_tap_transcripts_made_public_in_BUWOG_corruption_investigation Austrian Times, December 2010] the phrase "Was war meine Leistung?" (What was my service [for that payment]?) entered popular usage. ''Falter'' arranged a public reading of the transcripts by a group of comedians.<[http://www.youtube.com/watch?v=87hEEPbu7gg]
Regardless of the outcome of the large number of court cases filed by district attorneys against Grasser and by Grasser against individuals), it seems clear that his public image as the "new-and-squeaky-clean" politician of a new era has been tarnished once and for all. After Green MP [[Gabriela Moser]] and ''Falter'' published transcripts of police recordings of Grasser's telephone conversations with one of his friends, Walter Meischberger, in which Meischberger could not describe the services for which he was paid hundreds of thousands of euros by the Porr construction company,<ref>[http://www.austriantimes.at/news/General_News/2010-12-22/29284/Phone_tap_transcripts_made_public_in_BUWOG_corruption_investigation Austrian Times, December 2010]</ref> the phrase "Was war meine Leistung?" (What was my service [for that payment]?) entered popular usage. ''Falter'' arranged a public reading of the transcripts by a group of comedians.[https://www.youtube.com/watch?v=87hEEPbu7gg]


In Austrian quality newspapers, Grasser's case is now seen as a test of credibility for the Austrian judicial system:[http://derstandard.at/1295570595923/Blog-KrisenFrey-Wird-es-Grasser-erwischen?_blogGroup=1 the legal protection from prosecution of former politicians is confronted with rumours about Grasser's alleged quagmire of corruption. It will be seen if the Austrian judicial system is up to the task. At present, in an interview by Grasser with the Austrian radio station [Ö1]] on 22 January 2011,[http://oe1.orf.at/konsole?show=ondemand&track_id=265217&load_day=/programm/konsole/tag/20110122] Grasser threatened to sue anyone who criticized his behaviour. "Nothing will come of [any law suit against me]", Grasser said. Instead, he is suing a number of people and announcing that he will sue others.
In Austrian quality newspapers, Grasser's case is now seen as a test of credibility for the Austrian judicial system:[http://derstandard.at/1295570595923/Blog-KrisenFrey-Wird-es-Grasser-erwischen?_blogGroup=1] the legal protection from prosecution of former politicians is confronted with rumours about Grasser's alleged quagmire of corruption. It will be seen if the Austrian judicial system is up to the task. At present, in an interview by Grasser with the Austrian radio station [[Ö1]] on 22 January 2011,<ref>{{Cite web|title=Ö1 web radio live |language=de |url=http://oe1.orf.at/konsole?show=ondemand&track_id=265217&load_day=%2Fprogramm%2Fkonsole%2Ftag%2F20110122 |archive-url=https://web.archive.org/web/20110129035646/http://oe1.orf.at/konsole?show=ondemand&track_id=265217&load_day=%2Fprogramm%2Fkonsole%2Ftag%2F20110122 |archive-date=29 January 2011 |url-status=dead }} <sup>[Not found in archive.]</sup></ref> Grasser threatened to sue anyone who criticized his behaviour. "Nothing will come of [any law suit against me]", Grasser said. Instead, he is suing a number of people and announcing that he will sue others.


On 5 May 2011, new allegations have to come to light. The magazine ''Format'' quotes from police reports that Grasser, between 2005 and 2007 during his tenure as finance minister of the Republic of Austria, on three occasions personally carried "cases of cash" from Switzerland to Austria. Grasser said that the money was given to him, in cash, by his future mother in law, heiress to the [[Swarovski]] Crystal company, a claim she denies.<ref>Der Standard, February 4, 2012. http://derstandard.at/1328162536029/Schwiegermutter-belastet-Grasser-schwer</ref>
On 5 May 2011, new allegations have to come to light. The magazine ''Format'' quotes from police reports that Grasser, between 2005 and 2007 during his tenure as finance minister of the Republic of Austria, on three occasions personally carried "cases of cash" from Switzerland to Austria. Grasser said that the money was given to him, in cash, by his future mother in law, heiress to the [[Swarovski]] Crystal company, a claim she denies.<ref>''Der Standard'', February 4, 2012. http://derstandard.at/1328162536029/Schwiegermutter-belastet-Grasser-schwer</ref>


On May 26, 2011, Austrian Finance police searched 10 of Grasser's private and business dwellings on suspicion of embezzling up to 3 million Euro from the Austrian tax system during and after his time as finance minister. Finance police removed 35 boxes of files, computers and mobile phones.<ref>http://derstandard.at/1304553044564/Razzia-35-Kartons-mitgenommen---und-ein-Kinder-Handy</ref> If found guilty, Grasser would face up to ten years in federal prison, would have to pay back the money and face hefty fines in the million Euro range (as a percentage of the non-declared income).[http://derstandard.at/1304553094241/KHG-und-die-Geschwuerstiftung]
On 26 May 2011, Austrian Finance police searched ten of Grasser's private and business dwellings on suspicion of embezzling up to 3 million euro from the Austrian tax system during and after his time as finance minister. Finance police removed 35 boxes of files, computers and mobile phones.<ref>{{Cite web|url=http://derstandard.at/1304553044564/Razzia-35-Kartons-mitgenommen---und-ein-Kinder-Handy|title = DerStandard.at}}</ref> If found guilty, Grasser would face up to ten years in federal prison, would have to pay back the money and face hefty fines in the million euro range (as a percentage of the non-declared income).[http://derstandard.at/1304553094241/KHG-und-die-Geschwuerstiftung]
Grasser, who was abroad at the time of the searches, maintains his innocence. Delivering messages via his attorney to the Austrian media, Grasser describes the case as a "politically motivated act".[http://orf.at/stories/2060546/2060542/]
Grasser, who was abroad at the time of the searches, maintains his innocence. Delivering messages via his attorney to the Austrian media, Grasser describes the case as a "politically motivated act".[http://orf.at/stories/2060546/2060542/]


As of 27 May 2011, the Austrian judiciary has not launched a court challenge against Grasser. Already, this affair has become one of the most opaque and dubious money and embezzlement schemes in the public eye. Grasser is presumed to be innocent unless proved guilty.[http://derstandard.at/1304553094241/KHG-und-die-Geschwuerstiftung]
As of 27 May 2011, the Austrian judiciary has not launched a court challenge against Grasser. Already, this affair has become one of the most opaque and dubious money and embezzlement schemes in the public eye. In August 2013, new details have come to light. [[Gernot Rumpold]], Grasser's friend and Freedom party associate, was sentenced to 3 years in federal prison for embezzlement charges (the ruling can still be appealed).<ref>{{Cite web|url=http://derstandard.at/1375626204669/Urteile-gegen-das-System-Haider|title = DerStandard.at}}</ref>


The Austrian monthly magazine ''Format'', cites police investigation reports that links Grasser not just to the 500,000 Euros he confessed to bringing, in a suitcase, across the border to Liechtenstein during his tenure as Austrian Federal Minister of Finance, but to a total of 1.6 million Euro that were found in offshore bank accounts (allegedly, as Grasser claims, to make an investment "for his mother-in-law").<ref>{{Cite web|url=http://www.format.at/articles/1332/951/363801/neue-bareinzahlungen-grasser-konten-ministerzeit|title = Trend. Das Wirtschaftsmagazin. Das Wirtschaftsportal. &#124; trend.at}}</ref> In August 2013, Austrian finance police has expressed serious doubt as to the source of the 20 cash transfers amounting to the 1.6 million Euros now identified by Austrian police after almost five years of investigation.<ref>{{Cite web|url=http://derstandard.at/1375626029637/Finanz-glaubt-Grassers-Erklaerungen-nicht|title = DerStandard.at}}</ref> The irregularities and sums involved, the fact that substantial sums were directed—always via offshore and Liechtenstein bank accounts or in suitcases—in highly complex investment constructions linked to dummy companies seems to point towards a mesh of corruption and embezzling that might become one of the biggest personal corruption scheme in post-WWII Austria.<ref>{{Cite web|url=http://www.format.at/articles/1332/692/363809/supersauber-ironie-bedeutung|title = Trend. Das Wirtschaftsmagazin. Das Wirtschaftsportal. &#124; trend.at}}</ref>
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==Departure from Politics==
Grasser announced his departure from politics<ref>[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<!-- Bot generated title -->]</ref> on January 9, 2007 to return to the private sector, with Investment Banking as one of his options. [[Salomon Smith Barney]].<ref>[http://www.vol.at/news/oesterreich/artikel/grasser-soll-investmentbanker-werden/cn/news-20070109-03580663 Grasser soll Investmentbanker werden - Österreich - Aktuelle Nachrichten - Vorarlberg Online<!-- Bot generated title -->]</ref>


On 22 August 2013, the magazine ''Format'' and Austrian daily newspaper ''Der Standard'' reported on Grasser potentially facing up to 10 years in prison for tax evasion and tax fraud, in addition to fines that may amount up to 20 million Euros.<ref>{{Cite news|title=Abgabenbetrug: Grasser drohen zehn Jahre Haft |date=22 August 2013 |newspaper=Der Standard |language=de |url=https://www.derstandard.at/story/1376534348738/abgabenbetrug-grasser-drohen-zehn-jahre-haft |archive-url=https://web.archive.org/web/20201207051124/https://apps.derstandard.at/privacywall/story/1376534348738/abgabenbetrug-grasser-drohen-zehn-jahre-haft |archive-date=7 December 2020 |url-status=live }}</ref> It has been unheard of in post-WWII Austria that a former minister would potentially face such stiff sentencing, though, after five years of painstaking research into Grasser's complex of mailbox companies in offshore locations and in Liechtenstein (which is independent from the Austrian judicial system) by the Austrian Federal Financial Police, Grasser's explanation that he did not understand the constructions but followed the advice of his accountant, seem, given his background in Finance and his role as Austrian Finance Minister,<ref>{{Cite news|title=KHG und die "Geschwürstiftung" |date=27 May 2011 |newspaper=Der Standard| language=de |url=https://www.derstandard.at/story/1304553094241/khg-und-die-geschwuerstiftung |archive-url=https://web.archive.org/web/20201207045627/https://apps.derstandard.at/privacywall/story/1304553094241/khg-und-die-geschwuerstiftung |archive-date=7 December 2020 |url-status=live }}</ref> doubtful.<ref>{{Cite news|last=Möchel |first=Kid |title=Grasser drohen zehn Jahre Haft |language=de |date=22 August 2013 |newspaper=[[Kurier]] |location=Vienna, Austria |url=https://kurier.at/politik/inland/grasser-droht-wegen-verdachts-auf-abgabenbetrug-gefaengnis/23.672.713 |archive-url=https://web.archive.org/web/20130824223642/http://kurier.at/politik/inland/grasser-droht-wegen-verdachts-auf-abgabenbetrug-gefaengnis/23.672.713 |archive-date=24 August 2013 |url-status=live }}</ref>
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==References==

In December 2020 he was sentenced to 8 years in prison.<ref>[https://www.bbc.co.uk/news/world-europe-55195397 Austria: Former finance minister Grasser jailed for corruption] BBC, 2020</ref>

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== Departure from politics ==
On 9 January 2007, Grasser announced his departure from politics to return to the private sector.<ref>{{Cite news|last=Kole |first=William J. |date=9 January 2007 |agency=Associated Press |title=Austria's finance minister says he's quitting politics |newspaper=Taiwan |url=https://www.taiwannews.com.tw/en/news/362896 |archive-url=https://web.archive.org/web/20201214183451/https://www.taiwannews.com.tw/en/news/362896 |archive-date=14 December 2020 |url-status=live }}</ref><ref>{{Cite news|date=9 January 2007 |title=Austria's finance minister says he's quitting politics |newspaper=International Herald Tribune |url=http://www.iht.com/articles/ap/2007/01/09/europe/EU-POL-Austria-Grasser-Resigns.php |archive-url=https://web.archive.org/web/20080615024347/http://www.iht.com/articles/ap/2007/01/09/europe/EU-POL-Austria-Grasser-Resigns.php |archive-date=15 June 2008 |url-status=dead }}</ref> He was considering a position in investment banking at [[Salomon Smith Barney]], of [[Citigroup]],<ref>{{Cite news|trans-title=Grasser is supposed to become an investment banker |title=Grasser soll Investmentbanker werden |date=9 January 2007 |publisher= Vorarlberg Online |location=Austria |language=de |url=http://www.vol.at/news/oesterreich/artikel/grasser-soll-investmentbanker-werden/cn/news-20070109-03580663 |archive-url=https://web.archive.org/web/20080613231949/http://www.vol.at/news/oesterreich/artikel/grasser-soll-investmentbanker-werden/cn/news-20070109-03580663 |archive-date=13 June 2008 | url-status=dead |quote=Finanzminister Karl-Heinz Grasser (V) soll Banker bei der internationalen Investmentfirma Salomon Smith Barney werden.}}</ref><ref>{{Cite news|date=8 February 2007 |title=Grasser soll Investmentbanker werden |trans-title=Grasser is supposed to become an investment banker |newspaper=[[Der Standard]] |language=de |location=Vienna, Austria |url=https://www.derstandard.at/story/2720932/grasser-soll-investmentbanker-werden |archive-url=https://web.archive.org/web/20201027190248/https://www.derstandard.at/story/2720932/grasser-soll-investmentbanker-werden |archive-date=27 October 2020 |url-status=live }}</ref> But instead engaged in a number of small-scale lobbying and investment firms, most of which were short-lived, including Meinl International Power, Valora Solutions, SMW OG, and a real estate company GPS.<ref>{{Cite news|title=Grasser hat seinen "Hauptjob" gefunden |date=13 June 2007 |newspaper=Die Presse |language=de |url=http://www.diepresse.com/home/wirtschaft/economist/310344/index.do |archive-url=https://web.archive.org/web/20161105230623/http://diepresse.com/home/wirtschaft/economist/310344/Grasser-hat-seinen-Hauptjob-gefunden |archive-date=5 November 2016 |url-status=dead }}</ref><ref>{{Cite news|first=Leo |last=Himmelbauer |date=13 June 2007 |title=Meinl-Grasser-Haider: Ein Trio unter Strom |newspaper=[[WirtschaftsBlatt]] |location=Vienna, Austria |language=de | url=http://www.wirtschaftsblatt.at/home/boerse/bwien/245725/index.do | archive-url=https://web.archive.org/web/20080924145920/http://www.wirtschaftsblatt.at/home/boerse/bwien/245725/index.do |archive-date=24 September 2008 |url-status=dead }}</ref><ref>{{Cite news|title=Causa Grasser: Ermittlungen wieder ausgeweitet |date=14 July 2010 |newspaper=[[Der Standard]] |language=de |url=http://derstandard.at/1277338104040/Causa-Grasser-Ermittlungen-wieder-ausgeweitet |archive-url=https://web.archive.org/web/20100719014342/http://derstandard.at/1277338104040/Causa-Grasser-Ermittlungen-wieder-ausgeweitet |archive-date=19 July 2010 |url-status=live }}</ref><ref>{{Cite news|title=Untersuchung im Steuerparadies: "Spät, aber doch" |trans-title=Investigation in the tax haven: "Late, but still" |date=15 July 2008 |newspaper= Österreichischer Rundfunk (ORF) |language=de |url=https://newsv1.orf.at/080714-27306/?href=https%3A%2F%2Fnewsv1.orf.at%2F080714-27306%2F27307txt_story.html |archive-url=https://archive.today/lrYmA?https://newsv1.orf.at/080714-27306/?href=https%3A%2F%2Fnewsv1.orf.at%2F080714-27306%2F27307txt_story.html |archive-date=14 December 2020 |url-status=live }}</ref><ref>{{Cite news|title=Verwalter für anonymen "Wohlhabenden": Valora Solutions, Valuecreation, MIP und nun SMW OG - die Jobs von Karl-Heinz Grasser |trans-title=Karl-Heinz Grasser's jobs: Administrator for an anonymous "wealthy person": Valora Solutions, Valuecreation, MIP and now SMW OG |language=de |date=15 July 2008 |newspaper=Österreichischer Rundfunk (ORF) |url=https://newsv1.orf.at/080714-27306/?href=https%3A%2F%2Fnewsv1.orf.at%2F080714-27306%2F27321txt_story.html |archive-url=https://archive.today/BvkVS?https://newsv1.orf.at/080714-27306/?href=https%3A%2F%2Fnewsv1.orf.at%2F080714-27306%2F27321txt_story.html |archive-date=14 December 2020 |url-status=live }}</ref>

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== References ==
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{{s-ttl|title=[[Finance Minister of Austria]]|years=2000 &ndash; 2007}}
{{s-ttl|title=[[Finance Minister of Austria]]|years=2000–2007}}
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{{Persondata <!-- Metadata: see [[Wikipedia:Persondata]]. -->
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| NAME = Grasser, Karl-Heinz
| ALTERNATIVE NAMES =
| SHORT DESCRIPTION =
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| DATE OF BIRTH = January 2, 1969
| PLACE OF BIRTH =
| DATE OF DEATH =
| PLACE OF DEATH =
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}}
{{DEFAULTSORT:Grasser, Karl-Heinz}}
{{DEFAULTSORT:Grasser, Karl-Heinz}}
[[Category:1969 births]]
[[Category:1969 births]]
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[[Category:University of Klagenfurt alumni]]
[[Category:Finance ministers of Austria]]
[[Category:Freedom Party of Austria politicians]]
[[Category:Living people]]
[[Category:Living people]]
[[Category:Austrian politicians]]
[[Category:Politicians from Klagenfurt]]
[[Category:People from Klagenfurt]]
[[Category:21st-century Austrian politicians]]
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[[Category:University of Klagenfurt alumni]]

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[[de:Karl-Heinz Grasser]]
[[fr:Karl-Heinz Grasser]]
[[pt:Karl-Heinz Grasser]]

Latest revision as of 19:32, 19 September 2024

Karl-Heinz Grasser
Grasser in 2004
Minister of Finance of Austria
In office
February 2000 – January 2007
Personal details
Born
Karl-Heinz Grasser
Spouse
​
(m. 2005)​
Children1

Karl-Heinz Grasser (born 2 January 1969) is a former Austrian politician (FPÖ at first and later associated with but never officially a member of the ÖVP), who held the office of Austrian Finance Minister from February 2000 to January 2007 as a member of the two subsequent governments of Wolfgang Schüssel. For some time, Grasser was some kind of a jet set person after marrying Fiona Swarovski, the heir of the Swarovski crystal manufacturers in Tyrol, Austria. While at the time praised by many for, in Grasser's words "consolidating Austria's budget",[1] he has since then been known for his involvement in major corruption scandals. In 2020, Grasser was sentenced to 8 years in prison for corruption.[2]

Early career

[edit]

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 right nationalist 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

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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. When the coalition broke up in 2002, Grasser left his party, but after national elections in November and the reestablishment of the coalition under the lead of a strengthened People's Party, Grasser again became minister, 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. 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 his yuppie antics have made him hugely popular with the public.

During the early year of his tenure as Finance Minister, 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. From early on in Grasser's tenure as Finance Minister there have been recurring suspicions of backroom deals between Grasser and some of his political and business friends. The first major case was the affair behind the financing of Grasser's personal homepage in 2004.[3]

Corruption trials and conviction

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Meanwhile, in January 2011, new and continuing investigations by Austrian district attorneys into suspicions of kickback schemes and backroom deals[4] and, in certain cases, alleged manipulation of federal spending figures to syphon money to his allies[5] have brought Grasser in front of the Austrian media once more. These reports have been spearheaded by the Vienna weekly Der Falter. More details on the allegations can be found on Wikipedia in German. Grasser maintains his innocence on all counts.

Regardless of the outcome of the large number of court cases filed by district attorneys against Grasser and by Grasser against individuals), it seems clear that his public image as the "new-and-squeaky-clean" politician of a new era has been tarnished once and for all. After Green MP Gabriela Moser and Falter published transcripts of police recordings of Grasser's telephone conversations with one of his friends, Walter Meischberger, in which Meischberger could not describe the services for which he was paid hundreds of thousands of euros by the Porr construction company,[6] the phrase "Was war meine Leistung?" (What was my service [for that payment]?) entered popular usage. Falter arranged a public reading of the transcripts by a group of comedians.[1]

In Austrian quality newspapers, Grasser's case is now seen as a test of credibility for the Austrian judicial system:[2] the legal protection from prosecution of former politicians is confronted with rumours about Grasser's alleged quagmire of corruption. It will be seen if the Austrian judicial system is up to the task. At present, in an interview by Grasser with the Austrian radio station Ö1 on 22 January 2011,[7] Grasser threatened to sue anyone who criticized his behaviour. "Nothing will come of [any law suit against me]", Grasser said. Instead, he is suing a number of people and announcing that he will sue others.

On 5 May 2011, new allegations have to come to light. The magazine Format quotes from police reports that Grasser, between 2005 and 2007 during his tenure as finance minister of the Republic of Austria, on three occasions personally carried "cases of cash" from Switzerland to Austria. Grasser said that the money was given to him, in cash, by his future mother in law, heiress to the Swarovski Crystal company, a claim she denies.[8]

On 26 May 2011, Austrian Finance police searched ten of Grasser's private and business dwellings on suspicion of embezzling up to 3 million euro from the Austrian tax system during and after his time as finance minister. Finance police removed 35 boxes of files, computers and mobile phones.[9] If found guilty, Grasser would face up to ten years in federal prison, would have to pay back the money and face hefty fines in the million euro range (as a percentage of the non-declared income).[3] Grasser, who was abroad at the time of the searches, maintains his innocence. Delivering messages via his attorney to the Austrian media, Grasser describes the case as a "politically motivated act".[4]

As of 27 May 2011, the Austrian judiciary has not launched a court challenge against Grasser. Already, this affair has become one of the most opaque and dubious money and embezzlement schemes in the public eye. In August 2013, new details have come to light. Gernot Rumpold, Grasser's friend and Freedom party associate, was sentenced to 3 years in federal prison for embezzlement charges (the ruling can still be appealed).[10]

The Austrian monthly magazine Format, cites police investigation reports that links Grasser not just to the 500,000 Euros he confessed to bringing, in a suitcase, across the border to Liechtenstein during his tenure as Austrian Federal Minister of Finance, but to a total of 1.6 million Euro that were found in offshore bank accounts (allegedly, as Grasser claims, to make an investment "for his mother-in-law").[11] In August 2013, Austrian finance police has expressed serious doubt as to the source of the 20 cash transfers amounting to the 1.6 million Euros now identified by Austrian police after almost five years of investigation.[12] The irregularities and sums involved, the fact that substantial sums were directed—always via offshore and Liechtenstein bank accounts or in suitcases—in highly complex investment constructions linked to dummy companies seems to point towards a mesh of corruption and embezzling that might become one of the biggest personal corruption scheme in post-WWII Austria.[13]

On 22 August 2013, the magazine Format and Austrian daily newspaper Der Standard reported on Grasser potentially facing up to 10 years in prison for tax evasion and tax fraud, in addition to fines that may amount up to 20 million Euros.[14] It has been unheard of in post-WWII Austria that a former minister would potentially face such stiff sentencing, though, after five years of painstaking research into Grasser's complex of mailbox companies in offshore locations and in Liechtenstein (which is independent from the Austrian judicial system) by the Austrian Federal Financial Police, Grasser's explanation that he did not understand the constructions but followed the advice of his accountant, seem, given his background in Finance and his role as Austrian Finance Minister,[15] doubtful.[16]

In December 2020 he was sentenced to 8 years in prison.[17]

Departure from politics

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On 9 January 2007, Grasser announced his departure from politics to return to the private sector.[18][19] He was considering a position in investment banking at Salomon Smith Barney, of Citigroup,[20][21] But instead engaged in a number of small-scale lobbying and investment firms, most of which were short-lived, including Meinl International Power, Valora Solutions, SMW OG, and a real estate company GPS.[22][23][24][25][26]

References

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  1. ^ josef.votzi (2018-03-21). "Ein Kassasturz, der (noch) nicht wehtut". kurier.at (in German). Retrieved 2024-09-19.
  2. ^ "Buwog-Urteil: Generalprokuratur empfiehlt Bestätigung des Grasser-Schuldspruchs". DER STANDARD (in Austrian German). Retrieved 2024-09-19.
  3. ^ Hans Rauscher 2011. http://derstandard.at/1295570595183/OeFB-Grasser--Co-sollen-Nationalrat-um-eine-Million-getaeuscht-haben
  4. ^ "DerStandard.at".
  5. ^ "DerStandard.at".
  6. ^ Austrian Times, December 2010
  7. ^ "Ö1 web radio live" (in German). Archived from the original on 29 January 2011. [Not found in archive.]
  8. ^ Der Standard, February 4, 2012. http://derstandard.at/1328162536029/Schwiegermutter-belastet-Grasser-schwer
  9. ^ "DerStandard.at".
  10. ^ "DerStandard.at".
  11. ^ "Trend. Das Wirtschaftsmagazin. Das Wirtschaftsportal. | trend.at".
  12. ^ "DerStandard.at".
  13. ^ "Trend. Das Wirtschaftsmagazin. Das Wirtschaftsportal. | trend.at".
  14. ^ "Abgabenbetrug: Grasser drohen zehn Jahre Haft". Der Standard (in German). 22 August 2013. Archived from the original on 7 December 2020.
  15. ^ "KHG und die "Geschwürstiftung"". Der Standard (in German). 27 May 2011. Archived from the original on 7 December 2020.
  16. ^ Möchel, Kid (22 August 2013). "Grasser drohen zehn Jahre Haft". Kurier (in German). Vienna, Austria. Archived from the original on 24 August 2013.
  17. ^ Austria: Former finance minister Grasser jailed for corruption BBC, 2020
  18. ^ Kole, William J. (9 January 2007). "Austria's finance minister says he's quitting politics". Taiwan. Associated Press. Archived from the original on 14 December 2020.
  19. ^ "Austria's finance minister says he's quitting politics". International Herald Tribune. 9 January 2007. Archived from the original on 15 June 2008.
  20. ^ "Grasser soll Investmentbanker werden" [Grasser is supposed to become an investment banker] (in German). Austria: Vorarlberg Online. 9 January 2007. Archived from the original on 13 June 2008. Finanzminister Karl-Heinz Grasser (V) soll Banker bei der internationalen Investmentfirma Salomon Smith Barney werden.
  21. ^ "Grasser soll Investmentbanker werden" [Grasser is supposed to become an investment banker]. Der Standard (in German). Vienna, Austria. 8 February 2007. Archived from the original on 27 October 2020.
  22. ^ "Grasser hat seinen "Hauptjob" gefunden". Die Presse (in German). 13 June 2007. Archived from the original on 5 November 2016.
  23. ^ Himmelbauer, Leo (13 June 2007). "Meinl-Grasser-Haider: Ein Trio unter Strom". WirtschaftsBlatt (in German). Vienna, Austria. Archived from the original on 24 September 2008.
  24. ^ "Causa Grasser: Ermittlungen wieder ausgeweitet". Der Standard (in German). 14 July 2010. Archived from the original on 19 July 2010.
  25. ^ "Untersuchung im Steuerparadies: "Spät, aber doch"" [Investigation in the tax haven: "Late, but still"]. Österreichischer Rundfunk (ORF) (in German). 15 July 2008. Archived from the original on 14 December 2020.
  26. ^ "Verwalter für anonymen "Wohlhabenden": Valora Solutions, Valuecreation, MIP und nun SMW OG - die Jobs von Karl-Heinz Grasser" [Karl-Heinz Grasser's jobs: Administrator for an anonymous "wealthy person": Valora Solutions, Valuecreation, MIP and now SMW OG]. Österreichischer Rundfunk (ORF) (in German). 15 July 2008. Archived from the original on 14 December 2020.
Political offices
Preceded by Finance Minister of Austria
2000–2007 		Succeeded by
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