Hypo bank woes heap pressure on Austrian coalition talks

VIENNA (Reuters) - Nationalised lender Hypo Alpe Adria's urgent need for more state cash is heaping pressure on Austria's two biggest parties to agree coalition terms and tackle stretched state finances.

As the Social Democrats (SPO) and the conservative People's Party (OVP) try to form a new government, a hole in state finances exposes policy differences between the SPO - which campaigned to protect public pensions and introduce a wealth tax on millionaires - and the OVP, which wants to cut state spending and has ruled out new taxes.