Austria's Automotive Industry: Prospering Or Stalling?

Austria, officially the Republic of Austria, is a landlocked country in Central Europe with a population of around 9 million. It is a federation of nine states, including its capital, Vienna, which is the most populous city. Austria is a semi-presidential representative democracy with a popularly elected president as head of state and a chancellor as head of government. It is bordered by Germany, the Czech Republic, Slovakia, Hungary, Slovenia, Italy, Switzerland, and Liechtenstein. The country's official language is German, and its currency is the euro. Austria has a high GDP per capita and is known for its classical music heritage, winter sports, and cuisine.

Austria's geography and climate

Geography

Austria is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous city and state. Austria is bordered by Germany to the northwest, the Czech Republic to the north, Slovakia to the northeast, Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The country occupies an area of 83,879 square kilometres (32,386 sq mi) and has a population of around 9 million.

The area of today's Austria has been inhabited since at least the Paleolithic period. Around 400 BC, it was inhabited by the Celts and then annexed by the Romans in the late 1st century BC.

Austria is a predominantly mountainous country, with the Alps occupying 62% of its landmass. The remaining land consists of the Pannonian plain in the east, and the Bohemian Forest, an older, lower mountain range, in the north. The Danube has its source near Donaueschingen in southwestern Germany and flows through Austria before emptying into the Black Sea. It is the only major European river that flows eastwards.

Climate

Austria belongs to the central European transitional climatic zone, with weather patterns influenced by the Alps, the Mediterranean, the Atlantic Ocean, and continental Europe. The country can be divided into three climatic zones: the eastern part has a continental Pannonian climate, the central Alpine region has the characteristic features of the Alpine Climate, and the remaining part of the country belongs to the transitional central European climatic zone, which is characterised by a wet and temperate climate.

The lowland regions in the north and east have more continental-influenced conditions with colder winters and hotter summers, while the southeastern areas of Austria have longer and warmer, almost Mediterranean-like summers. In the west of the country, the influence of the temperate Atlantic climate is stronger, resulting in milder winters and warm summers. The climate of the mountainous regions is colder than at lower altitudes, with temperatures decreasing by around 5 degrees Celsius for every additional 300 metres of elevation.

Precipitation is evenly distributed throughout the year, with the months of May, September, and the first half of October being the driest, and April and November tending to be the wettest. The climate of Austria can be classified as a warm, temperate, and humid climate, while the climate of the mountainous regions can be classified as a humid snow climate.

Austrian politics

The Austrian Parliament consists of two chambers: the National Assembly (Nationalrat) and the Federal Council (Bundesrat). The National Assembly is the predominant chamber and has 183 members, elected for a five-year term by proportional representation. The Federal Council represents the interests of the provinces in Parliament and consists of 62 members selected by the state legislatures.

Five political parties are currently represented in the Austrian Parliament: the Austrian People's Party (ÖVP), the Social Democratic Party of Austria (SPÖ), the Austrian Freedom Party (FPÖ), the Greens, and the NEOS.

Austria's legal system distinguishes between three different instruments of direct democracy: referendums (Volksabstimmungen), popular initiatives (Volksbegehren), and national opinion polls (Volksbefragungen). All Austrians who are 16 or older can vote.

Austria's political system has been characterised by Proporz, with most politically important posts split proportionately between members of the Social Democratic Party of Austria (SPÖ) and the Austrian People's Party (ÖVP). Since 1945, there have been two single-party governments: Austrian People's Party (1966-1970) and the Social Democratic Party of Austria (1970-1983). During all other legislative periods, either a grand coalition of the two major parties or a "small coalition" with a third smaller party has ruled the country.

Austrian history

The history of Austria covers the history of Austria and its predecessor states. In the late Iron Age, Austria was occupied by people of the Hallstatt Celtic culture (c. 800 BC), who first organised as a Celtic kingdom referred to by the Romans as Noricum, dating from c. 800 to 400 BC. At the end of the 1st century BC, the lands south of the Danube became part of the Roman Empire. In the Migration Period, the 6th century, the Bavarii, a Germanic people, occupied these lands until it fell to the Frankish Empire established by the Germanic Franks in the 9th century. The name Ostarrîchi (Austria) has been in use since 996 AD when it was a margravate of the Duchy of Bavaria and from 1156 an independent duchy (later archduchy) of the Holy Roman Empire (962–1806).

Austria was dominated by the House of Habsburg and House of Habsburg-Lorraine from 1273 to 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. Engelbert Dollfuss accepted that most Austrians were German and Austrian, but wanted Austria to remain independent from Germany. 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.

Austrian culture

Language and Communication

Austria's official language is High German, although each region has its own dialect. Other languages spoken include Turkish, Serbian, Slovene, Croatian, and Hungarian. The country's unique geography, with its mountains and forests, has also contributed to the development of distinct dialects and regional identities.

Austrians tend to be direct and honest in their communication, and they value punctuality, orderliness, and thoroughness. At the same time, they also like their social interactions to be warm and lively. Maintaining eye contact during conversations is considered polite and respectful.

Food and Drink

Austrian cuisine is influenced by the diverse cultures of the former Austro-Hungarian Empire, including Italy and Eastern Europe. Traditional dishes include Wiener Schnitzel, sausages, and goulash. The country is also known for its cakes and pastries, such as apple strudel and sachertorte. Coffee is an integral part of Austrian culture, with the country boasting a rich coffeehouse tradition.

Arts and Literature

Austria has a deep appreciation for the arts, particularly music. The country has produced several renowned composers, including Mozart, Haydn, Schubert, and Beethoven. Vienna, in particular, is associated with the operetta and waltz music genres. Austrian children often have compulsory music and art classes, and the government makes efforts to instil an appreciation for the arts in the younger generations.

Austrian literature has produced luminaries such as Franz Kafka, Ludwig Wittgenstein, and Karl Kraus. The country also has a strong tradition of philosophy, with philosophers like Wittgenstein and Karl Popper making significant contributions to the field.

Sports and Leisure Activities

Austrians love their sports, with soccer and biking being popular choices. However, the country is most famous for its winter sports, particularly alpine skiing. Taking walks, or "Spaziergänge", is also a common pastime, and the country's stunning natural landscapes provide the perfect setting for outdoor activities.

Social Structure and Values

Austria places great emphasis on egalitarianism and social welfare. The country has a comprehensive social welfare system that provides support for health, education, employment, and retirement needs. Austrians also value cooperation, formality, and "Gemutlichkeit", which refers to a feeling of warmth, friendliness, and happiness. They take pride in their beautiful country and work hard to preserve its natural landscape.

Austrian economy

Austria has a highly developed social market economy and is one of the richest countries in the world in terms of GDP per capita. The country's economic system can be characterised as a free-market economy 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, including manufacturing, energy production and supply, and construction, represents 28% of Austria's GVA. The primary sector, including agriculture and forestry, makes up only 1.2% of the GVA, and just one in thirty Austrians are employed in this sector.

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

Austria's industrial and commercial sectors are characterised by a high proportion of medium-sized companies. The country covers every branch of manufacturing, from basic goods to the labour-intensive production of highly processed products. The construction of plants and systems is an increasingly important and export-oriented share of the economy, as is the electronics sector.

Tourism is an essential pillar of the Austrian economy, accounting for around 10% of its GDP. Austria is a mountainous country with one of the largest natural land reserves in Central Europe, making it a popular destination for winter sports.

In terms of international trade, Germany has historically been Austria's main trading partner. However, since Austria became a member state of the European Union, it has gained closer ties to other EU economies and reduced its economic dependence on Germany. Trade with other EU countries accounts for almost 66% of Austrian imports and exports. Austria has also been increasingly active in the emerging markets of Central and Eastern Europe, with trade in these regions accounting for about 14% of imports and exports.

Austria has an abundance of natural resources, including iron ore, non-ferrous metals, important minerals and earths, petroleum, and natural gas. The country is also a leader in the European Union in the field of hydroelectric power generation.

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