Austria's 1995 Move: Joining The Prestigious European Union

In 1995, Austria joined the European Union (EU). This was the culmination of a long process of integration, which began with Austria's application for membership in 1989. Austria's membership in the EU has had a significant impact on the country's foreign and European policy, allowing it to advocate for its interests within the EU's decision-making structures. It has also brought about economic benefits, with the country's exports tripling and thousands of new jobs created annually since accession.

Austria joined the European Union (EU)

Austria's accession to the European Union (EU) in 1995 marked the completion of a long process of integration. The country had been a founding member of the European Free Trade Association (EFTA), established by the Stockholm Convention, which entered into force on 3 May 1960. In 1973, Austria established its first closer economic ties with the states forming the European Economic Community (EEC). Although this bridge between EFTA and the EEC was successful in terms of export access, it did not offer a path to more comprehensive relations.

In 1989, the plan for the establishment of a European Economic Area (EEA) by Jacques Delors, then President of the Commission, provided for a close association between EFTA and the EEC. By the time the treaty establishing the EEA was signed in 1992, Austria had set its sights on full membership of the EEC. The following year, formal negotiations began, and in 1994, the Austrian Parliament adopted the Federal Constitutional Law on the Accession of Austria to the European Union.

In accordance with the Austrian Federal Constitution, the decision was put to a referendum, and on 12 June 1994, 66.58% of the Austrian population voted in favour of accession. The Accession Treaty and the Final Act were signed in Corfu on 24 June 1994, and Austria officially joined the EU on 1 January 1995. This enlargement of the EU was its fourth and is also known as the EFTA Enlargement round. Austria joined alongside Finland and Sweden, with all three countries having previously been members of EFTA and neutral during the Cold War.

Austria's membership in the EU has had a significant impact on its foreign and European policy. Austrian representatives participate in decision-making processes in the European Council and the Council, and there are directly elected Austrian members of the European Parliament. EU issues feature prominently on the daily agenda of Austria's foreign policy, including initiatives to protect civilians in armed conflicts, strengthen human rights and the rights of minorities, and promote disarmament and arms control.

Since Austria's accession to the EU, its economy has benefited significantly from its involvement in the single market, and Austrian exports have tripled. The internal market has also meant significant savings for the Austrian economy, as around 70% of Austria's foreign trade is with EU member states. Austria's membership has also brought numerous advantages for citizens, including the ability to travel through a Europe without borders, study in other member states through EU exchange programmes, benefit from the common currency, and settle in any EU member state.

The EU's fourth enlargement

On 1 January 1995, Austria, Finland, and Sweden acceded to the European Union (EU), marking its fourth enlargement. All three states were members of the European Free Trade Association (EFTA) and had traditionally shown less interest in joining the EU than other European countries. This enlargement is also known as the EFTA Enlargement Round.

Austria, Finland, and Sweden began considering stronger ties with the EU towards the end of the 1980s, for three main reasons: the economic downturn in Europe during the 1980s, difficulties for EFTA companies to export to the EU, and the end of the Cold War.

The economic downturn in Europe during the 1980s led to the launch of the Single European Act, which aimed to create a single market by 1992. As a result, EFTA states found it harder to export to the EEC, and businesses, including large EFTA corporations like Volvo, wanted to relocate within the new single market, exacerbating the downturn for EFTA. Despite domestic unpopularity, EFTA states started discussing closer links with the EEC.

Additionally, Austria, Finland, and Sweden were neutral during the Cold War. Hence, membership in an organisation developing a common foreign and security policy would have been incompatible with their neutrality. However, with the end of the Cold War in 1989, this obstacle was removed, and the desire to pursue membership grew stronger.

Nevertheless, membership in the EU remained domestically unpopular, and the EEC (European Economic Community), the predecessor of the EU, was also uninterested in another enlargement at the time. The EEC had started working on creating a common currency and did not want to divert attention from that project. Commission President Jacques Delors proposed the European Economic Area (EEA) as a solution, giving EFTA access to the EU's internal market without full membership. While EFTA states would not have a say in creating EU law, it would be easier to sell to their electorates.

However, businesses did not accept that EEA members would be equal members of the single market, and investment flows did not return to normal. Large manufacturers in Sweden, in particular, pushed the government towards full membership rather than remaining with the EEA, which was insufficient for export-focused industries. The economic pressures overcame the long-standing opposition from social democrat governments, which saw the EU as too neo-liberal and a danger to the Nordic model.

The EEA was further damaged when Switzerland, an EFTA member, voted against joining it. Austria, Finland, Norway, and Sweden then applied for full membership of the EU, and the EU agreed to enter negotiations. The EU's change of heart was also due to the predicted enlargement towards Central European countries, which would eventually be completed in 2004. The inclusion of wealthy EFTA members would help balance the EU budget.

Accession negotiations concluded on 30 March 1994, with the signing of the Accession Treaties on 25 June 1994. Each country held referendums on entry, with Austria, Finland, and Sweden voting in favour, while Norway rejected membership in their second referendum. Thus, on 1 January 1995, Austria, Finland, and Sweden became members of the EU, marking the conclusion of short negotiations that began on 1 February 1993 and ended in March 1994.

This enlargement created a Nordic bloc in the Council, with Sweden and Finland joining Denmark in advocating for environmental and human rights issues, and all Nordic countries calling for the membership of the Baltic states. As net contributors to the EU budget, they also added weight to the call for budgetary reform. Additionally, Swedish and Finnish were added as official languages of the EU.

However, this enlargement also highlighted problems with the EU's institutional structure, such as the size of the Commission and the Council's voting rules, which allowed states representing 41% of the population to be outvoted. It initiated discussions on increasing the blocking minority in the Council and resulted in the loss of the larger states' second European Commissioner.

Austria's EU referendum

In 1989, Austria set itself the goal of becoming a full member of the European Communities. This was formalised when the country submitted its application for membership on July 7, 1989.

Austria's application was accepted, and formal negotiations began on February 1, 1993. On April 12, 1994, the negotiations were concluded, and the treaty was put to a referendum in accordance with the Austrian Federal Constitution.

On June 12, 1994, 66.58% of the Austrian population voted in favour of accession to the EU. The referendum was obligatory, and the high voter turnout was indicative of the importance Austrians placed on the issue.

Austria's membership in the EU has had a significant impact on the country's foreign and European policy. It offers a formal forum for Austria to advocate for its concerns within the EU's decision-making structures. Austrian representatives participate in the decision-making process in the European Council and its preparatory bodies, and there are directly elected Austrian members of the European Parliament.

Austria's integration efforts were completed when it joined the EU on January 1, 1995. This was the EU's fourth enlargement, and it also included Finland and Sweden, both of which were previous members of the European Free Trade Association (EFTA) like Austria.

Austria's accession to the EU marked a shift in its relationship with Europe, and it is now an active participant in the EU's decision-making and policy-making processes.

Austria's EU presidency

In 1995, Austria joined the Partnership for Peace (PfP) framework, which falls under its cooperation with NATO. In the same year, Austria also joined the European Union (EU).

Austria held the rotating presidency of the Council of the European Union in the second half of 1998 and the first six months of 2006. The presidency is responsible for driving forward the Council's work on EU legislation, ensuring the continuity of the EU agenda, orderly legislative processes, and cooperation among member states.

Austria assumed the presidency with the self-confident, routine manner of a long-standing member state and minor heavyweight of European diplomacy. However, the German federal elections in 1998, which saw the victory of Gerhard Schröder (SPD) over long-serving Chancellor Helmut Kohl (CDU), limited the prospects of success for the Austrian presidency. The Vienna summit in December 1998 made little progress regarding the "Agenda 2000" programme and the pressing task of agrarian reform.

During its presidency, Austria continued to face the long shadow of neutrality, struggling to obtain more than WEU observer status and participation in the NATO cooperation programme Partnership for Peace (PfP). The SPÖ–ÖVP coalition, in power from 1987 to 1999, failed to achieve deep structural reforms or a consensus on a new model for security policy. While the ÖVP favoured NATO entry, the more cautious SPÖ sought to maintain neutrality.

Despite these challenges, Austria's EU membership has had a significant impact on the country's foreign and European policy. It has provided a formal forum for advocating Austrian concerns within the EU decision-making structures and offered economic benefits, such as increased exports and job creation.

Austria's EU laws and policies

In 1995, Austria joined the European Union (EU), marking the completion of the country's integration efforts, which had begun with its application for membership in 1989. Austria's membership in the EU has significantly influenced its foreign and European policies, providing a platform to advocate for Austrian interests within the EU's decision-making structures.

Austria's relationship with the EU and its impact on the country's laws and policies can be examined through various aspects:

Economic Impact

Austria's membership in the EU has had a noticeable impact on its economy. As approximately 70% of Austria's foreign trade is with EU member states, the country has benefited from the internal market, resulting in significant savings. Since joining the EU, Austria's exports have tripled, and an estimated 13,000 to 18,500 new jobs have been created annually. The country's economy has also been shielded from the full impact of the economic and financial crisis due to its membership and accession to the Monetary Union.

Travelling and Exchange Programs

One of the most significant advantages of Austria's EU membership for its citizens is the freedom to travel, study, and settle in any EU member state without restrictions. This has enhanced opportunities for Austrians to explore other cultures, pursue educational exchanges, and seek employment or residence across Europe.

EU Decision-Making and Representation

Austria actively participates in the decision-making process within the EU. Austrian representatives are involved in the European Council, the Council and its preparatory bodies, and the European Parliament. Additionally, Austria's positions on EU issues are comprehensively coordinated through consultations with various entities, including the Parliament, federal provinces, communities, interest groups, and the public, as outlined in the Austrian Constitution.

Common Foreign and Security Policy (CFSP)

Austria's membership in the EU aligns with its commitment to protecting civilians in armed conflicts, strengthening human rights and minority rights, disarmament, arms control, and non-proliferation of weapons of mass destruction. These initiatives are part of the multilateral field within the framework of the CFSP.

EU Presidency

Austria has held the rotating presidency of the EU three times: in 1998, 2006, and the second half of 2018. During these periods, Austria played a crucial role in shaping the EU's agenda and leading discussions on various issues, such as economic policies and agrarian reform.

Challenges and Criticisms

While Austria's EU membership has brought numerous benefits, there have also been challenges and criticisms. Austria's far-right parties, such as the Freedom Party, have at times gained influence and participated in coalition governments. This has led to tensions with other EU member states and criticisms from the international community, as seen in 2000 when the EU imposed sanctions on Austria due to the inclusion of the Freedom Party in the government.

In summary, Austria's EU laws and policies are intricately linked to its membership in the European Union, which has had a profound impact on the country's economy, foreign policy, and the daily lives of its citizens. Austria actively participates in EU decision-making processes and has held the EU presidency multiple times. However, there have also been challenges and criticisms, particularly regarding the influence of far-right parties in Austrian politics.

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