VIENNA, Austria - Austria's governing coalition crumbled Monday after months of acrimony.

New elections are expected as early as September.

The political sparring began early Monday with Vice-Chancellor Wilhelm Molterer, leader of the conservative People's party, calling for an election.

Within hours, the Social Democrats appeared to accept the challenge.

Parliament is expected to take the necessary steps to authorize the election within days.

The two parties have been bickering since forging their "grand coalition" in early 2007 following the October 2006 elections that gave the Social Democrats a slight lead.

"The truth is that they (the People's party) never accepted the October 2006 election results," said Chancellor Alfred Gusenbauer of the Social Democrats.

Speculation about new elections had circulated for some time, with a main point of contention being an apparent EU policy reversal by the Social Democratic leadership.

In an open letter published late last month by the tabloid Kronen Zeitung, Gusenbauer and Transportation Minister Werner Faymann said the party will seek referendums on future changes to the EU's reform treaty that pertain to Austrian interests, as well as Turkey's possible accession to the 27-country bloc.

Austria's parliament had ratified the treaty in April - a move Gusenbauer supported back then.

But Gusenbauer, whose popularity has plummeted amid dissatisfaction among members of his own party, says he has had a change of heart about the EU treaty.

He cites results of a recent study showing that only 28 per cent of Austrians have a positive image of the EU.

His unexpected announcement in the tabloid, co-signed by Faymann, who is being touted for the chancellor's job if the Social Democrats are re-elected, angered the People's party.

Molterer said he would recommend early elections with senior People's party officials Tuesday. He accused the Social Democrats of being self-centred and lacking leadership and direction.

"Good work in Austria's federal government ... is no longer possible," he said at a hastily called news conference. "I therefore recommend immediate, prompt new elections."

"I cannot watch and am not allowed to let the (Social Democrats') crisis ... become a crisis for Austria," Molterer said.

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