Austria's Eu Exit: What's Next?

Austria has been a member of the European Union since 1995, when it joined alongside Sweden and Finland. The country actively participates in all the EU institutions and has held the rotating presidency of the Council of the European Union three times. Austria has 20 representatives in the European Parliament and 12 representatives on the European Economic and Social Committee and the European Committee of the Regions. It is also a member of the Schengen area. Austria's relationship with the EU has not always been smooth, with the country facing sanctions from the EU in 2000 due to the inclusion of the Freedom Party in its government. However, there are no indications that Austria is currently considering leaving the EU.

Austria's application and entry into the EU

Austria's application was successful, and it became a member of the EU on 1st January 1995. This was following a historic referendum in June 1994, in which Austrian voters indicated their desire to join the EU. The country has actively participated in all the EU institutions and constructively shaped the EU's development since its accession.

Austria has benefited from its membership in the EU in several ways. It ranks fifth in the European Union in terms of GDP per capita, well above the EU average. It also accounts for 2.8% of the EU's total GDP. Austria has 20 representatives in the European Parliament and has held the rotating presidency of the Council of the European Union three times: in 1998, 2006, and the second half of 2018.

Austria has also been responsible for several portfolios in the European Commission. From 1995 to 2004, Franz Fischler headed the DG for Agriculture, Rural Development, and Fisheries, shaping the outcome of the Agenda 2000, which reformed the European Union's Common Agricultural and Regional policies. Following this, Benita Ferrero-Waldner, Austria's former Minister for Foreign Affairs, became the Union's Commissioner for External Relations and European Neighbourhood Policy, serving from 2004 to 2010.

In summary, Austria's application and entry into the EU were marked by successful negotiations and a national referendum, leading to its accession in 1995. The country has since been an active participant in EU institutions and has benefited economically and politically from its membership.

Austria's role in the EU

Austria has been a member of the European Union since 1995, when it joined alongside Sweden and Finland. The country has actively participated in all the EU institutions and constructively shaped the EU's development. Austria has held the presidency of the Council of the European Union three times: in 1998, 2006, and 2018.

Austria has 20 representatives in the European Parliament and 12 representatives on both the European Economic and Social Committee and the European Committee of the Regions. The country also communicates with the EU through its permanent representation in Brussels, ensuring that its interests and policies are considered in the EU.

Austria ranks fifth in the European Union in terms of GDP per capita, contributing 2.8% of the EU's total GDP. The country benefits from the EU budget, which helps fund programmes and projects such as building roads, subsidising researchers, and protecting the environment.

Austria's involvement in the EU extends to its participation in the Council of the EU, where national ministers meet regularly to adopt EU laws and coordinate policies. Additionally, Austria has held key positions in the European Commission, contributing to various portfolios such as agriculture, rural development, fisheries, external relations, and migration.

Overall, Austria plays an active and constructive role in the European Union, contributing to policy-making, law adoption, and budgetary decisions. The country's representation in various EU institutions and its economic strength within the union underscore its significant role in the EU.

Austria's economy and the euro

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. It has been a member of the European Union since 1995 and adopted the euro as its currency in 1999. Austria's economy is closely integrated with other EU member countries, especially Germany, its main historical trading partner.

Austria's GDP per capita is €46,200, ranking fifth in the European Union and well above the EU average of €37,600. It accounts for 2.8% of the EU's total GDP. Austria's economy is characterised by a strong labour movement and a highly developed industry, with international tourism being the most important part of the national economy. The country has also made progress in increasing its international competitiveness and attracting foreign investment due to its access to the European Single Market.

Austria's diverse and growing economy is supported by one of the world's most stable banking systems, which is comprised of 597 institutions. The country's gross domestic product (GDP) of $431 billion in 2018 represented a year-on-year real growth of 2.7%, outperforming the EU average of 1.9%. This growth is attributed to various factors, including positive fiscal policies, current account surpluses, a declining debt ratio, low inflation, and a stable political and social environment.

Austria's highly diversified economy includes strong industrial capacity and well-developed services, ranging from tourism to professional services. The country has a skilled workforce and stable labour conditions, with research and development clusters that attract foreign companies and startups. Additionally, its excellent transport, energy, and infrastructure make Austria a significant regional energy supplier and a vital traffic hub.

In summary, Austria's economy and the euro are closely intertwined, with the country benefiting from the single currency and contributing to the EU's economic growth and stability.

Austria's far-right and the EU

Austria's far-right has been on the rise in recent years, with the Freedom Party (FPÖ) becoming an increasingly prominent force in the country's political landscape. The party's surge in popularity can be attributed to a variety of factors, including toxic media discourse, a paranoid tabloid agenda, a culture of fake news on social media, and the psychological scars left by the COVID-19 pandemic. The Freedom Party has tapped into concerns over migration, crime, and security among Austrian citizens, often exaggerating issues to create a social climate that misrepresents reality and plays on people's fears.

The Freedom Party's rise to dominance in national elections has had major implications for democracy and political stability in Austria. In 2024, the party won 28.8% to 29% of the vote, surpassing the ruling conservative Austrian People's Party and becoming the dominant political force in the country. This shift has been characterised as a democratic, human rights, and political-cultural disaster, with the Freedom Party's illiberal and authoritarian agenda rendering the political establishment impotent.

The Freedom Party's success can be partly attributed to the COVID-19 pandemic, during which the party denounced anti-pandemic measures as "human rights violations" and criticised the government for "imprisoning" citizens and "forcing" vaccinations. This narrative resonated with many Austrians, who felt their freedoms were being restricted. Additionally, the party's anti-immigration stance and calls for a homogeneous" nation have gained traction, with concerns over immigration, integration, and cultural panic surrounding Islam.

The Freedom Party has a history of influencing Austrian politics, having previously formed a coalition government with the Austrian People's Party from 2017 to 2019. This government collapsed due to a scandal involving the then-leader of the Freedom Party, Heinz-Christian Strache. Despite this setback, the party has continued to gain support, and its leader, Herbert Kickl, received a mandate in January 2025 to try to form a new government. This would be the first far-right-led government in Austria since World War II.

The potential formation of a far-right-led government in an EU member state has raised concerns among Austrians and observers alike. Protesters have voiced their worries about waking up "in a fascist country" or an "authoritarian system". However, there is no significant opposition or calls for sanctions from within Austria or the international community, as seen in previous instances. The normalisation of the Freedom Party's extreme right-wing agenda and the lack of effective counterstrategies from centrist parties have contributed to its rise.

Austria's relationship with the EU today

Austria has been a member of the European Union since 1st January 1995, when it joined alongside Sweden and Finland. In the years since, Austria has actively participated in all the EU institutions and constructively shaped the EU's development.

Austria has held the rotating presidency of the Council of the European Union three times: in 1998, 2006, and 2018. The country has also been responsible for several portfolios in the European Commission. From 1995 to 2004, Franz Fischler headed the DG for Agriculture, Rural Development, and Fisheries, significantly shaping the outcome of the Agenda 2000, which reformed the European Union's Common Agricultural and Regional policies. Following Fischler's departure, Benita Ferrero-Waldner, Austria's former Minister for Foreign Affairs, became the Union's Commissioner for External Relations and European Neighbourhood Policy, serving from 2004 to 2010. The latest Austrian member of the European Commission is Johannes Hahn, who was responsible for the Union's relations with the Western Balkans—an area of special importance to Austria.

Austria's relationship with the EU has not been without its challenges. In the late 1990s and early 2000s, the rise of the far-right Freedom Party, led by Jörg Haider, caused concern. The party's extreme brand of conservatism regularly drew international censure, and when it formed a coalition government with the Austrian People's Party in 2000, the EU imposed sanctions on Austria. However, these sanctions were withdrawn by the end of the year as they backfired, with the governing parties mobilizing patriotic support by portraying Austria as a victim of an international conspiracy.

More recently, in 2016, Austria suspended its participation in the Schengen Agreement, reintroducing border controls in response to the migrant crisis. This move was largely seen as ineffective, and the Freedom Party's landslide victory in the first round of presidential balloting in April 2016 signaled a shift in the mood of the Austrian electorate. However, the far-right was ultimately kept out of power, and as of 2017, Austria's governing coalition consists of the center-right People's Party and the Social Democrats.

Today, Austria continues to be an active member of the EU, with 20 representatives in the European Parliament and 12 representatives on both the European Economic and Social Committee and the European Committee of the Regions. The country also communicates with the EU institutions through its permanent representation in Brussels, ensuring that its interests and policies are pursued within the union.

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