Austria's Eu Contribution: Net Positive Or Negative?

Austria has been a member of the European Union (EU) since 1995. The country's relationship with the EU has been characterised by its geographic position, which has embedded it within a variety of political and economic systems. Austria's contributions to the EU budget are calculated based on the size of its economy. In 2023, Austria received a reduction in its VAT-based contribution to the EU budget, paying 0.15% of its harmonised VAT base compared to the standard rate of 0.30%. This reduction expired in 2016. Austria also received a lump-sum payment of €60 million to reduce its annual GNI contributions for 2014-2020.

Austria's contributions to the EU budget

Austria has been a member of the European Union since 1995. In 2023, Austria's contribution to the EU budget was 132,596 million euros in national contributions and 21,590 million euros in net traditional own resources, for a total of 154,186 million euros. This amount is calculated fairly, with larger economies paying more and smaller economies paying less. Austria's economy is the fifth largest in the EU in terms of GDP per capita, and it accounts for 2.8% of the EU's total GDP.

Austria's net receipts from the EU

Austria has been a member of the European Union since 1995 and is one of the wealthier member states, ranking fifth in the EU in terms of GDP per capita. The amount a country contributes to the EU budget is linked to the size of its economy. Austria's net receipts from the EU are therefore likely to be lower than those of less wealthy countries.

The EU budget is used to finance EU funding programmes and other expenditure at the European level. It is primarily an investment budget, aiming to complement national budgets. The EU budget for 2021-2027 is €1,074.3 billion, representing 1.02% of the EU's Gross National Income (GNI). The budget is decided upon every seven years and is adopted through the budgetary procedure by the European Parliament and the Council of the European Union.

Austria's GDP and its ranking in the EU

Austria has a highly developed social market economy, and is one of the 14 richest countries in the world in terms of GDP per capita. In 2024, Austria's nominal GDP per capita was $58,669, ranking 13th in the world. Vienna, the country's capital, was ranked the fifth richest NUTS-2 region within Europe, with a GDP per capita of €38,632.

Austria ranks fifth in the European Union in terms of GDP per capita, with €46,200, well above the EU average of €37,600. The country accounts for 2.8% of the EU's total GDP.

Austria's GDP in 2023 was USD 511.69 billion for the whole country, or USD 56,034 per capita. If calculated per inhabitant, taking purchasing power parity into account, Austria is 17th in the list of the world's richest countries.

Austria's average GDP growth from 1992 to 2017 ranked 13th among OECD countries.

Austria's number of representatives in the European Parliament

Austria has 20 representatives in the European Parliament. The country's federal Parliament has two chambers: the directly elected Lower House (Nationalrat) and the Upper House (Bundesrat), which is elected by regional parliaments. The National Council is the dominant (albeit 'lower') house in the Austrian Parliament, and consequently, the terms Parliament and National Council are often used synonymously.

The 183 Members of the National Council are elected by all citizens entitled to vote, every five years or sometimes sooner. Voters have to decide in favour of one single party, and the National Council is formed based on the party-list system of proportional representation. The seats, often referred to as "mandates", are assigned to the political parties under strict rules, with the key being the percentage share of total votes they have obtained.

The second chamber of Parliament, the Federal Council, is not directly elected by popular vote. Its composition depends on the relative strength of the parties in the Diets of the Federal Provinces, whose interests it represents at the legislative level. The Members of the Federal Council, therefore, remain in office throughout the legislative period of the Diet by which they have been delegated. The number of Members of the Federal Council that a Federal Province can delegate depends on its population. The most populous Province is entitled to a maximum of twelve, while the smallest is entitled to a minimum of three Members.

Austria's membership of the Schengen Area

Austria has been a member of the Schengen Area since 1 December 1997. The Schengen Area allows citizens to cross all borders within the area without identity checks, although it is still recommended to carry a passport or ID card. The agreement also established a common visa policy, meaning travellers from outside Europe only need a single Schengen visa to enter all member countries.

The Schengen Area includes all EU member states except Ireland, Cyprus, Bulgaria, and Romania. The latter three are full members of the EU but only partially apply the Schengen acquis, so passport controls remain in place at their borders. Austria's neighbours Hungary, Slovenia, Slovakia, and the Czech Republic have all temporarily reintroduced border controls as of May and April 2025.

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