Austria is a federal parliamentary republic with a chancellor who is the head of government and a president who is the head of state. The country is made up of nine states, and both regional and federal governments exercise executive power. The Austrian Parliament has two chambers: the directly elected Lower House (Nationalrat) and the Upper House (Bundesrat), which is elected by regional parliaments.
Austria has a rich history, with the area of today's Austria settled in the Paleolithic Age. In the late Iron Age, Austria was occupied by people of the Hallstatt Celtic culture, and around 400 BC, Celtic peoples from Western Europe settled in the eastern Alps. A Celtic state, Noricum, developed around the region's ironworks in the second century BC.
In the 12th century, Henry II moved his residence to Vienna, which has remained the capital of the country ever since. In the same century, St. Stephen's Cathedral was completed, becoming a visible landmark of the city.
In the 19th century, the idea of grouping all Germans into one nation-state was the subject of debate. The unification of Germany in 1871 excluded Austria and the German Austrians from the Prussian-dominated German Empire. The idea of an Anschluss, or a united Austria and Germany to form a Greater Germany, gained support after the fall of the Austro-Hungarian Empire in 1918.
In the 20th century, Austria was annexed into the German Reich on 13 March 1938, an event known as the Anschluss. This was followed by the Second World War, which ended in 1945, and the restoration of Austria's 1937 frontiers. In 1955, the Austrian State Treaty was ratified, with Austria declaring its permanent neutrality.
Today, Austria is a member of the European Union, having joined in 1995. It ranks fifth in the European Union in terms of GDP per capita, with a strong economy and a stable political system.
What You'll Learn
Austria's history
The area of today's Austria was settled in the Paleolithic Age (until around 8000 BC). In the late Iron Age, around 800 BC, Austria was occupied by people of the Hallstatt Celtic culture. In the second century BC, a Celtic state, Noricum, developed around the region's ironworks. From the 7th century BC onwards, one of the main regions of Celtic occupation was in modern-day Austria, centred around Hallstatt, a large prehistoric salt-mining area. The Hallstatt period, 750 - c.450 BC, is named after this region.
The Romans arrived in 200 BC and by 15 BC they dominated the entire area. The most important Roman settlement in Austria was Carnuntum, which became the centre of the Roman fortifications along the Danube.
By the later half of the second century AD, various German tribes were extending their territory, making devastating incursions into Roman territories. By the mid-500s, the Bavarians controlled the territory between the eastern Alps and the Wienerwald region.
Around 800, Charlemagne, the king of the Franks and eventually Holy Roman Emperor, established a territory in the Danube valley known as the Ostmark (Eastern March). In 996, the Ostmark was first referred to as "Ostarrichi", a clear forerunner of the modern German word "Österreich".
In 1273, the House of Habsburg and House of Habsburg-Lorraine began their rule over Austria, which lasted until 1918. In 1806, when Emperor Francis II of Austria dissolved the Holy Roman Empire, Austria became the Austrian Empire, and was also part of the German Confederation until the Austro-Prussian War of 1866. In 1867, Austria formed a dual monarchy with Hungary: the Austro-Hungarian Empire.
When this empire collapsed after the end of World War I in 1918, Austria was reduced to the main, mostly German-speaking areas of the empire (its current frontiers), and adopted the name, the Republic of German-Austria. However, union with Germany and the chosen country name were forbidden by the Allies at the Treaty of Versailles. This led to the creation of the First Austrian Republic (1919–1933).
Following the First Republic, Austrofascism tried to keep Austria independent from the German Reich. In 1938, Austrian-born Adolf Hitler annexed Austria to Germany, which was supported by a large majority of Austrians. After the German defeat in World War II, the German identity in Austria was weakened. Ten years after the Second World War, Austria again became an independent republic as the Second Austrian Republic in 1955. Austria joined the European Union in 1995.
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Austria's role in the United Nations
Austria joined the United Nations Organisation (UN) on 14 December 1955 as its 70th member and has since established itself as an engaged member state. Vienna, the Austrian capital, is one of the four headquarters of the United Nations, along with New York, Geneva and Nairobi.
Austria advocates for a strong and efficient UN and actively participates in its work. The country has been a regular member of important commissions and bodies of the UN, such as the Commission on Human Rights. Austria's priorities within the UN include peacekeeping, conflict prevention, human rights, disarmament, arms control and non-proliferation, combating crime and drugs, sustainable development and the strengthening, development and codification of international law.
Austria has contributed troops to UN peacekeeping missions and, as of 2019, has contributed over 20 million euros to the UN's annual budget. The country has been elected thrice to the Security Council, twice to the UN Human Rights Council and its nationals have been appointed to key posts within the UN.
Vienna has become an important centre for addressing global security challenges and issues such as nuclear safety, the fight against organised crime, and sustainability with a focus on energy and development. The city has frequently been the venue for international negotiations and conferences, including recent conferences on the role of women in conflict prevention and crisis management, and on human trafficking.
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Austria's government
Austria is a federal parliamentary republic with a two-tier governmental structure. The country consists of nine federal states or provinces, each with its own government, and the national government, which is based in Vienna. The Federal Government is headed by the Federal Chancellor, who is supported by the Vice Chancellor, federal ministers, and state secretaries.
The Austrian Parliament consists of two chambers: the National Assembly (Nationalrat) and the Federal Council (Bundesrat). The National Assembly is the main legislative body, and it works with the Federal Government to prepare and implement legislation. The Federal Council represents the interests of the provinces in Parliament, while the Provincial Assemblies (Landtage) represent the interests of citizens in the individual provinces. Each federal province is administered by a Provincial Government, which is headed by a Provincial Governor (Landeshauptmann) elected by the respective Provincial Assembly.
The Austrian government is also responsible for appointing representatives to various international organisations. Austria has been a member of the European Union since 1995 and has representatives in the European Parliament and the Council of the EU. Austria joined the United Nations Organisation (UN) in 1955 and has had Austrian nationals appointed to key posts within the UN, such as UN Secretary-General and United Nations High Commissioner for Human Rights.
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Austria's economy
Austria has a highly developed social market economy, with the country being one of the fourteen richest in the world in terms of GDP per capita. The average GDP growth in OECD countries from 1992 to 2017 was 13th, with a strong factor of 1.37% over the average population growth. In 2024, Austria's nominal GDP per capita was $59,225, ranking 13th in the world. Vienna, its capital, was ranked the fifth richest NUTS-2 region within Europe, with a GDP per capita of €38,632.
The service sector is the most important for Austria's economy, generating the vast majority of its GDP. Vienna has become a finance and consulting hub and established itself as the gateway to Eastern Europe. Law firms and banks in the city are among the leading corporations in business with the new EU member states. International tourism is also crucial to the economy, contributing around 10% of Austria's GDP. In 2001, Austria was the tenth most visited country globally, with over 18.2 million tourists.
Agriculture and industry are also significant sectors. Austrian farms are small and fragmented, and production is relatively expensive. The agricultural sector has been undergoing substantial reform under the EU's Common Agricultural Policy (CAP) since Austria joined the EU in 1995. While farmers provide about 80% of domestic food requirements, agriculture's contribution to GDP has declined since 1950 to less than 3%.
Austria has a strong industrial sector, with some industries competing globally, such as iron and steel works, chemical plants, and oil corporations. However, most industrial and commercial enterprises in the country are relatively small on an international scale.
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Austria's role in the European Union
Austria has been a member of the European Union since 1 January 1995, and its membership has had a significant impact on the country's foreign and European policy. Austria's involvement in the EU has also been economically beneficial, with the country's exports tripling since joining and 18,500 new jobs created annually. Austria's membership in the EU has also positively impacted its citizens, who enjoy the advantages of travelling through a borderless Europe, studying in other member states, and the right to settle in any EU member state.
Austria's role in the EU is shaped by its federal parliamentary system, with both regional and federal governments exercising executive power. The Austrian Parliament consists of two chambers: the directly elected Lower House (Nationalrat) and the Upper House (Bundesrat), elected by regional parliaments. The country has 20 representatives in the European Parliament, and Austrian ministers attend Council of the EU meetings several times a year to adopt EU laws and coordinate policies.
Austria's EU commissioner, Johannes Hahn, is responsible for Budget and Administration. The country has held the rotating presidency of the Council of the EU three times: in 1998, 2006, and 2018. During these periods, Austrian ministers chaired Council meetings, facilitated dialogue with other EU institutions, and helped set the agenda in different policy areas.
Austria's involvement in the EU provides a platform for the country to advocate for its concerns and interests within the decision-making structures of the Union. Austrian representatives participate in decision-making processes in the European Council and its preparatory bodies. Additionally, Austria has representatives in other EU institutions, ensuring coordination of Austrian positions through the consultation obligation defined in its constitution.
Austria's membership in the EU has fostered economic growth and stability, enhanced its international influence, and provided its citizens with expanded opportunities and rights within the European Union.
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Frequently asked questions
Vienna has been the capital of Austria since the 12th century.
As of 2024, Austria has a population of 9,158,750.
The currency of Austria is the euro.