Joerg Haider's politics have been widely criticised within the EU

The ruling by the Vienna commercial court, which was released to journalists by Mr Muzicant's lawyer, warns Mr Haider against repeating comments he made implying that Mr Muzicant engaged in dubious business practices.

Speaking at a Freedom Party beer hall rally in February, just before key elections in Vienna, Mr Haider said he could not understand how anyone called "Ariel" - also the name of a well-known washing powder - could have so much dirt on his hands.

The court ruling said this statement was untrue and damaging to Mr Muzicant, and that it must not be repeated.

Haider appeal

It said Mr Haider was known for expressing criticism in the form of jokes or puns.

Mr Haider, who has so far not commented on the issue, has the opportunity to appeal against the ruling.

A lawyer for the former Freedom Party leader said Mr Haider had meant the remark as a joke. She said a decision on a possible appeal would be taken in the next few days.

Mr Muzicant is also suing Mr Haider for other statements he made during the run-up to the Vienna elections.

Heated debate

This includes a charge of defamation in the form of incitement to anti-Semitism.

Mr Haider's remarks about Mr Muzicant during the campaign sparked a heated debate on the issue of anti-Semitism in the country and in the Austrian parliament.

A survey just published shows that 24% of all Austrians would prefer to live in a country without Jews.