Joerg Haider denies anti-Semitism

Leaders of the Austrian Jewish community have accused Mr Haider of hoping to revive the flagging fortunes of his party with anti-Semitic jibes, ahead of local elections in Vienna.

President Thomas Klestil meanwhile denounced anti-Semitism as he welcomed a group of 80 Jewish visitors to Austria, some of whom were returning to Austria for the first time since fleeing the Nazis more than 60 years ago.

Not true picture

"Austria must never again be home to anti-Semitism. We owe that to our history and to future generations." He said.

The elderly Jews, several accompanied by their grandchildren, were in Vienna at the invitation of The Jewish Welcome Service - an organisation promoting Jewish culture in Austria.

Schuessel: No call for apology

Leon Zelman, the organisation's director, urged the visitors not to be influenced by Mr Haider's remarks.

"That is not the true picture of Austria," Mr Zelman said.

At a Freedom Party rally in a beer hall last month, Mr Haider said he couldn't understand how anyone called Ariel - also the name of a well-known washing powder - could have so much dirt on his hands.

Innocent pleasantry

Mr Haider says the remark was an "innocent pleasantry", but Mr Muzicant is now suing him.

But the statement, and others referring to Mr Muzicant's business dealings, has been widely condemned as anti-Semitic, both in Austria and abroad.

Leading Jewish human rights group, The Simon Wiesenthal Centre, said that Mr Haider would continue his attacks, unless Chancellor Wolfgang Schuessel's government coalition joined in denouncing them.

"People cannot understand why the leadership of the Austrian government has failed to forthrightly condemn Haider's latest hateful attacks," said Rabbi Marvin Hier.

Upcoming elections

Austria's Chancellor, Wolfgang Schuessel, earlier distanced himself from the remarks, but refused to say whether he thought they were anti-Semitic or whether Mr Haider should apologise.

Ariel Muzicant is now suing

For her part, vice-chancellor Susanne Riess-Passer, who took over from Mr Haider as head of the Freedom Party last year, denies there's any anti-Semitism in her party.

The row comes amid last minute campaigning for regional elections in Vienna on Sunday.

With the Freedom Party lagging in the polls, some analysts believe this is a last-ditch attempt by Mr Haider to revive his party's fading fortunes.

On Tuesday Austria's Jewish leadership issued a statement blaming Mr Haider for Austria's "tainted international image".

Mr Haider has repeatedly denied anti-Semitism, despite in the past appearing to praise Nazi employment policies, and referring to concentration camps as "punishment" camps.