Can a country ever re-brand itself?

Austria’s reputation has suffered a battering over the past week because of the Josef Fritzl incest scandal. Now the Austrian Chancellor, Alfred Gusenbauer, has said his government plans to launch a campaign to rectify the damage done to the country’s image.  But how can  a country re-brand itself? Denmark went on a PR drive after the Muslim cartoon scandal. In the past Belgium has had its image damaged by child sex scandals….but how can a country recover from such bad press?