By Bethany Bell BBC News, Vienna

Austrian Chancellor Wolfgang Schuessel wants to rebuild popular support for the European Union. But as his country takes over the rotating six-month EU presidency, that may prove difficult, not least in Austria itself.

The chancellor was speaking at Austria's famous New Year concert

The Austrian EU presidency was ushered in to the strains of Johann Strauss and Mozart.

Austria's Chancellor Wolfgang Schuessel started the year by attending the famous New Year concert in Vienna, along with his guests, German Chancellor Angela Merkel and Slovenian Prime Minister Janez Jansa.

They were serenaded by the Vienna Philharmonic Orchestra, playing waltzes in the magnificent Musikverein concert hall. The event was watched by millions of people all over the world.

When it was over, Mr Schuessel said he hoped the harmony of the concert could be reproduced in the European Union.

The bloc is clearly in need of a makeover, after a year in which the draft EU constitution was rejected and in which there were damaging rows about the budget.

But it may take a little more than three-four time to bring together European hearts and minds.

UK Prime Minister Tony Blair's perceived climb-down over the British rebate has removed one major headache for the Austrian presidency.

But the compromise deal means that some countries - including Austria - will have to pay more into the EU budget.

That has added to the growing sense of resentment against the EU here in Austria.

Conflicting views

"Brussels just wants our money, and prices have gone up horribly since the introduction of the euro," the middle-aged couple who own my local flower stall told me. "The British were sensible to stay out."

"But Austria has done quite well economically since it joined the EU," I said.

"Na ja," the husband replied. "We'd probably have been ok if we hadn't joined. The EU is getting too big now, and we don't want to pay for it."

But many in Austria's business community would disagree.

In a way we are returning to our roots Austrian businessman

Austria is a major investor in Eastern Europe, both in the new EU member states on its borders and in EU hopefuls like Croatia.

Towns in Hungary, Slovakia and Slovenia are full of Austrian banks, petrol stations and chain stores.

"In a way we are returning to our roots," one businessman told me. "Many of us have ancestors from these countries, who came to Vienna during the Austro-Hungarian Empire. The EU helps us re-establish the old ties."

But modern Czechs, Slovaks and Hungarians still do not have the right to come and work freely in Austria.

Vienna has negotiated a seven-year transition period before it allows free movement of labour from the new EU countries.

A number of Austrians share the Europe-wide fear of the Polish plumber, the incomer who takes all the local jobs.

Turkey angst

But for many, there is an even bigger threat on the horizon: Turkey.

Almost 90% of Austrians are against Turkey joining the EU.

A few weeks ago, I travelled by train from Salzburg to Vienna and went to the restaurant car.

The train was quite full, so I asked if I could share a table with two elderly Viennese women who had been on a day's outing to the Salzburg Christmas markets.

"Oh please join us," they said. "Where are you from?" one of them asked me.

"I'm British," I said.

We have so many Turks and they are just not like us Viennese woman

"Ah, I visited England a couple of years ago," she said. "It is so pretty."

Our waiter, an Austrian of Arab origin, came and took our order for apple strudel and coffee.

"What really struck me about England" said the woman, "was how well-integrated foreigners are there, not like here in Austria."

"But relations with ethnic minorities here seem quite peaceful," I said. "There's hardly any violence."

"Perhaps," she said. "But we have so many Turks and they are just not like us. They don't make any effort to do things our way.

"Do you know last week a group of Turks had a barbecue in the courtyard of my apartment building? It was really smoky. They're just not Europeans."

I did not ask her whether Austrians ever had barbecues.

Patriotic note

Despite the fact that Mr Schuessel shares the widespread Austrian opposition to Turkish EU membership, he will have to handle preparations for Turkey's application over the next six months.

With general elections this year, the chancellor (right) has a lot at stake

So far he has been cautious and vague about his goals for the presidency, warning against high expectations.

He faces general elections this year and is wary about upsetting the Eurosceptic Austrians any more than he has to.

The New Year's concert in Vienna traditionally ends with two of the Strauss family's most famous compositions: the Blue Danube, by Johann Strauss the younger, and the Radetzky March, by his father, Johann Strauss the elder.

The swirling Blue Danube waltz is frequently hailed as an anthem of Central European unity, celebrating the river that connects Germany and Austria, Slovakia and Hungary, Serbia and Bulgaria.

It is followed by the rousing Radetzky March, full of Austrian national pride.

Audiences traditionally clap in time to the stirring martial air, which commemorates an imperial Austrian victory over the Italians.

The inclusiveness of the Blue Danube and the patriotism of the Radetzky March really please the crowds.

If Austria, like its New Year musicians, can achieve such a balance in the EU, its presidency will have struck the right note.