The World - News from Jan. 15, 1987

Austria’s two biggest political parties have agreed to form a “grand coalition” government, the first to rule the country since 1966, Chancellor Franz Vranitzky said. Vranitzky said he will remain chancellor in the new government. He headed the negotiating team of his Socialist Party, which emerged as the strongest party with 80 seats in the 183-seat Parliament in last November’s election, in talks with the People’s Party, led by Alois Mock, which won 77 seats. “We have reached agreement on all major subjects and the distribution of ministerial posts,” Vranitzky added.