Grasser Stays as Austrian Finance Minister - Paper

Karl-Heinz Grasser is set to stay on as Austrian finance minister in a new coalition government agreed on Monday by the country's two mainstream parties, a newspaper reported on Monday.

Kronen-Zeitung, an influential tabloid newspaper read by almost half of the population, said outgoing Chancellor Wolfgang Schuessel would propose Grasser as finance minister and vice chancellor at a meeting of his party on Tuesday.

Grasser, currently an independent, would join Schuessel's conservative People's Party if he became vice chancellor on top of the ministry job, Kronen-Zeitung reported in its Tuesday edition, without saying where it obtained the information.

A senior source at the centre-left Social Democrats, the party which will lead the government, had said earlier on Monday that Grasser would leave the government, confirming reports in Austrian media, including in Kronen-Zeitung's Monday edition.