Austria's Place In The European Community

Austria is a member of the European Union, having joined in 1995. It is not a member of NATO. Vienna, the Austrian capital, is home to many international organisations, including the United Nations, the Organization for Security and Co-operation in Europe, the International Atomic Energy Agency, and the Organisation of Petroleum Exporting Countries. Austria has held the Presidency of the Council of the EU in 1998, 2006, and 2018.

Austria's membership of the European Union

Austria has been a member of the European Union since 1st January 1995, following a referendum in 1994 in which two-thirds of the population voted in favour of joining the EU. Austria's membership of the EU has been significant for several reasons.

Firstly, it marked a shift in Austria's geopolitical position, moving it from the borderline between "East" and "West" to the centre of a larger Europe. This shift was particularly notable given Austria's history as a neutral country during the Cold War.

Secondly, Austria's membership of the EU has enabled it to participate in a successful and future-oriented economic project, as well as a peace project promising stability and security on the European continent. Austria has since focused its efforts on fostering the integration of neighbouring states in Eastern and Central Europe and the Western Balkans.

Thirdly, Austria's membership of the EU has allowed it to hold the Presidency of the Council of the EU on three occasions: in 1998, 2006, and 2018.

Finally, Austria's membership of the EU has provided opportunities for it to contribute to international efforts in areas such as peace and security, disaster relief and reconstruction, and climate-sensitive energy policy. For example, Austria has participated in UN missions in the Middle East, Cyprus, and Africa, and has undertaken measures aimed at a sustainable national environmental and energy policy.

Austria's history as an imperial power

In 1804, Francis II proclaimed the Austrian Empire, which became a great power in Central Europe. The empire included all the lands of the Habsburg monarchy and was the third most populous monarchy in Europe. However, the Napoleonic Wars (1804-1815) significantly weakened the Austrian Empire, leading to its defeat in the Battle of Austerlitz in 1805 and the loss of territories.

Following the Napoleonic Wars, the Austrian Empire played a crucial role in the overthrow of Napoleon and the Congress of Vienna in 1815, which reaffirmed its status as one of the great powers. During this period, the Austrian Empire was led by Chancellor Klemens von Metternich, who pursued a conservative and anti-revolutionary foreign policy.

In the 19th century, the Austrian Empire faced challenges from the rise of nationalism and the Ottoman Empire's westward expansion. The Hungarian Revolution of 1848 and the Austro-Hungarian War (1866) resulted in the creation of the dual monarchy of Austria-Hungary in 1867, with separate Austrian and Hungarian kingdoms united under the Habsburg ruler.

The assassination of Archduke Franz Ferdinand in 1914 sparked World War I, which ultimately led to the collapse of the Austro-Hungarian Empire and the proclamation of the Republic of German-Austria in 1918.

Austria's neutral status during the Cold War

However, the country remained under occupation until 1955, with Vienna being subdivided into four zones, each controlled by one of the occupying powers, and the central district collectively administered. The immediate post-war period saw the Western Allies and the Soviet Union struggling to reach an agreement on Austria's future, with the West aiming to safeguard the country's independence from communist expansion while the USSR refused to withdraw from its zone in eastern Austria.

The situation was further complicated by the emergence of the Cold War, which overshadowed the initial goal of liberating and reconstructing Austria as an independent state. During this period, Austria often served as a forward post for both the Americans and Soviets when they wanted to demonstrate their willingness to engage in dialogue.

Finally, in 1955, an agreement was reached, and the Austrian State Treaty was signed on 15 May by the USSR, the USA, the UK, France, and Austria. This treaty officially ended the state of war in Austria, and the country was granted full independence in exchange for proclaiming its military neutrality and agreeing to the withdrawal of all occupation forces. On 25 October 1955, the last occupation troops left Austria, and the country enacted a Declaration of Neutrality, committing to never join a military alliance or allow foreign troops to be based within its territory.

Austria's modern political landscape

The Austrian political landscape has been traditionally dominated by two major parties, the conservative Austrian People's Party (ÖVP) and the centre-left Social Democratic Party of Austria (SPÖ). However, in recent years, newer parties such as the Greens and the NEOS have gained prominence. The Freedom Party of Austria (FPÖ), a right-wing populist party, has also played a significant role in national politics.

In the 2019 legislative elections, the ÖVP emerged as the strongest party, and its leader, Sebastian Kurz, was tasked with forming a new coalition government. The ÖVP ultimately formed a coalition with The Greens – The Green Alternative, marking the first time the Greens have gained power in Austria. This coalition government has been characterised as a "grand coalition".

Austria's political system is considered stable, with a robust constitutional framework that facilitates peaceful change. The country's federal structure consists of nine autonomous federal states (Bundesländer) with their own written constitutions.

The Austrian political landscape underwent a significant shift in the 2024 elections, with the far-right Freedom Party of Austria (FPÖ) securing the most votes in the National Parliament. However, the FPÖ has faced isolation as the traditional centre-right and centre-left powerhouses, the ÖVP and SPÖ, have rejected the possibility of forming a coalition with them. This has raised questions about the country's future government and the ability to navigate the deeply polarised political environment.

Austria's economy and industry

Austria is a highly developed, industrialised country with a strong social market economy. It is one of the fourteen richest countries in the world in terms of GDP per capita, ranking fifth in the European Union. Austria's economy is characterised by a free market with a strong social focus, taking into account the weaker members of society.

Austria's economy is dominated by the service sector, which constitutes approximately 70% of the gross value added (GVA). The largest service sector employers are in sales, hotel and restaurant services, as well as health and education. The secondary sector, which includes manufacturing, energy production and supply, and construction, makes up 28% of the GVA. The primary sector, including agriculture and forestry, only accounts for 1.2% of the GVA, and less than 1% of the population are employed in this sector.

Austria's most important industries are food and luxury commodities, mechanical engineering and steel construction, chemicals, and vehicle manufacturing. The country also has a strong focus on arts and crafts, including fine hand-crafted items, customised jewellery, ceramics, and glassware.

Austria has a strong labour movement, with labour unions having a large influence on labour politics and decisions related to economic expansion. The Austrian Trade Union Federation (ÖGB) has about 1.5 million members, more than half of the country's wage and salary earners.

International tourism is a vital part of Austria's economy, accounting for around 10% of its GDP. The country is also a leader in the field of hydroelectric power in the European Union.

In recent years, Austria's GDP growth has been steady, ranging from 1% to 3.3% between 2002 and 2006. As of 2016, growth was set at 1.5%. The country experienced a recession in 2023 and 2024, with a projected return to growth in 2025.

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