Austria’s history since the 13th century is bound up with that of the Hapsburg family. The region was conquered by Charlemagne and remained a part of the Holy Roman Empire. By the 16th century, the Hapsburgs had gained a firm grip on the title of Emperor, although their power owed less to this often empty distinction than to the extensive family lands, many of which were to be found in Austria. Under Charles V, Austria was part of a vast empire; however, after Charles’ abdication in 1556, the Spanish and Germanic parts of his lands were separated, passing to his son and his brother,
respectively.
The Holy Roman Empire as a political unit became more and more fragmented, leading one 18th-century observer to comment that it was ‘neither holy, nor Roman, nor an Empire’. It was formally abolished in August 1806, Francis II having already assumed the title of ‘Emperor of Austria’. Much of the northern and eastern parts of the Empire had by this time been absorbed into Prussia. During the 17th and 18th centuries, Austria – and in particular Vienna – became one of the major centers of the cultural renaissance associated with the terms Baroque and The Enlightenment; the musical achievements of this period are particularly notable. The Austrian Empire (by this time the Austro-Hungarian Empire) came to an end after World War I; Austria was declared a republic. In 1938 it was incorporated into the Third Reich but was liberated in 1945 and established as a republic once again under the protectorship of the allied powers.
Full independence was restored in July 1955. Austria has since been governed according to an orthodox Western European model. The major parties, the
Österreichische Volkspartei (ÖVP – Austrian People’s Party) and the
Sozialdemokratische Partei Österreichs (SPÖ – Social Democratic Party of Austria), enjoyed an effective monopoly of Austrian politics until the 1980s, which saw the rise of the far right and environmentalists. The decade also brought unusual and unwelcome international attention to Austria when the former UN Secretary-General, Kurt Waldheim, stood for the presidency; although a largely titular post, the presidency carries great symbolic significance. The controversy mainly concerned Waldheim’s role during World War II, in which he served as a German army intelligence officer, as well as his alleged knowledge of - and complicity in - mass deportations and executions.
Dogged by the allegations throughout his six-year tenure, Waldheim stood down in May 1992. His replacement at the election that followed was ÖVP candidate Thomas Klestil, who was re-elected to a second term in April 1998. The Waldheim affair came soon after the first appearance of the far-right party,
Die Freiheitlichen, as a major electoral force. Originally known as the
Freiheitliche Partei Österreichs (FPÖ – Austrian Freedom Party), it was led by Joerg Haider, one of the new generation of ultra right-wing European politicians. Concerned to exclude
Die Freiheitlichen, the SPÖ and ÖVP formed a series of coalition governments in the mid- and late 1990s, in the hope that
Die Freiheitlichen would reach an electoral peak and fade from the political scene.
The folly of this strategy was illustrated in October 1999, when
Die Freiheitlichen increased their vote again to 27 per cent. Now, even the SPÖ and ÖVP together were unable to secure a majority and Haider’s party entered government in January 2000. After a furious initial reaction abroad, which included diplomatic sanctions, the rest of the EU soon came to terms with the new government. This was led by the ÖVP’s Wolfgang Schüssel as Chancellor and Haider’s deputy, Suzanne Riess-Passer, as Vice-Chancellor. Against expectations, the government survived until the autumn of 2002, before an internal
Freiheitlichen feud between party leader Haider and Riess-Passer spilled over into the administration as a whole and brought it down. The election that followed saw the collapse of the
Freiheitlichen vote to just 10 per cent – a third of its 1999 level – but Chancellor Schüssel, who held on to his post, was unable to negotiate an alliance with either of the other two main parties – the SPÖ and the Greens – and was obliged to form a second ‘black-and-blue’ alliance with the
Freiheitlichen (after their party colors). In early 2003, the People's Party agreed to form a government with the Freedom Party, who then proceeded to disband in 2003 when Haider set up the Alliance for Austria's Future. In April 2004, Heinzfische was elected President. Despite these many changes, Austria still succeeds in generating issues of right-wing contention: recent figures in late 2003 indicated that Austria had the most restrictive asylum laws in Europe.
GovernmentAustria is a federal republic with bicameral legislature. The 183-member National Council is elected for four years; the 64 members of Federal Council do not have fixed terms. The President, elected for a six-year term, is head of state. Executive power is held by the Chancellor, normally the leader of the largest party in parliament, who leads a cabinet of ministers.
EconomyAustria is one of the most prosperous countries in the world. Manufacturing, including mining, accounts for nearly 30% of GDP. Since WWII, much of the country’s industrial capacity has been in state hands and only recently has been removed from under the protective wing of the state holding company, OIAG. Iron and steel, chemicals, metalworking and engineering all fall into this category.
Tourism is a hugely important part of the Austrian economy. Agriculture has proved equally successful, with domestic products meeting 90% of the country’s food needs. Crops include sugar beet, potatoes, grain, grapes, tobacco, flax, hemp and wine.
Austria has moderate deposits of iron, lignite, magnesium, lead, copper, salt, zinc and silver. Although there are some oil reserves and an extensive hydroelectric program, Austria must import the bulk of its energy requirements.
Austria was a member of the European Free Trade Association (EFTA) before it joined the EU in 1995; Germany is now Austria’s largest trading partner by a considerable margin, followed by Italy, France, the UK and, outside the EU, Switzerland. Overall, the EU now accounts for approximately two thirds of total Austrian trade. The previously substantial trade with both the USA and the former Soviet Union has fallen as a proportion of the total in recent years.
After implementing austerity measures to cut government spending, Austria was able to meet the criteria for membership of the single European currency and joined it upon its inception at the beginning of 1999. Since then, in common with most of the EU, the economy has been sluggish. GDP growth was just 1.8% in 2005.
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