
Austria, a parliamentary democracy, has been facing economic troubles since 2012, with a soaring unemployment rate and a decline in GDP. The country's engagement with Central and Eastern Europe after the fall of communism has been cited as a factor in this downturn. Additionally, Austria's xenophobic tendencies and reluctance to publicly apologise for its historical involvement with the Nazi regime have drawn scrutiny. The country's response to the COVID-19 pandemic and its impact on the media landscape have also been a cause for concern. To revive its economy, Austria may need to attract innovation and highly skilled workers, potentially through selective immigration policies.
| Characteristics | Values |
|---|---|
| Austria's economy | Sputtering since 2012 |
| GDP in 2012 | 0.7% increase |
| Unemployment rate in 2010 | 5% |
| Unemployment rate in 2016 | 10% |
| Austrian subsidiaries in Eastern Europe | Employs five times more people with academic degrees |
| Austrian subsidiaries in Eastern Europe | Employs 25% more research personnel |
| Austrian firms | Need to employ highly qualified people in their research labs |
| Austrian firms | Need to attract highly skilled migrants and refugees |
| Austria | Is the Japan of Europe |
| Austria | Is unable to apologise publicly for the mistakes of the past |
| Austria | Is a nation that feels sorry for itself |
| Austria | Is inherently more xenophobic than other European countries |
| Austrian media | Suffered economically during the pandemic |
| Austrian media | Lost roughly 300,000 euros in ad revenue per week |
| Austrian media | Experienced a decline in trust |
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What You'll Learn

Austria's economy has been struggling since 2012
Central and Eastern European countries had lower per capita incomes but a higher proportion of skilled workers. Austrian subsidiaries in these regions employed five times as many people with academic degrees compared to their parent firms in Austria. They also had more researchers in their labs, and this relocation of research activity lowered growth in Austria while boosting growth in Eastern Europe. As a result, cities like Bratislava, Prague, and Warsaw, which are home to most Austrian subsidiaries, now have higher per capita incomes than Vienna.
Austria's economy has also been impacted by its relationship with Germany. Germany had a higher proportion of skilled workers than Austria, and while German firms also relocated skilled work to Eastern Europe, it was not to the same extent as Austria. Additionally, German subsidiaries employed more researchers than their Austrian counterparts, and many Austrian parent companies were themselves subsidiaries of foreign firms, limiting their autonomy.
Austria's economic struggles have led to a prolonged recession, affecting the labour market and resulting in an increase in unemployment. The country's GDP growth has been meagre, and it faces challenges such as declining investment, lower exports, and weak private consumption. However, there are signs of recovery, with growth expected to resume in 2025 through increased exports and improved private consumption as inflation decreases. Nonetheless, Austria's economy continues to face challenges, and addressing these issues will be crucial for the country's long-term prosperity.
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Austria's xenophobia
Austria has a history of xenophobia and racism, which has been a cause for concern in the country and has drawn comparisons to Japan. The country's far-right political affiliations have been well-documented, with the Austrian Civil War of the 1930s and the country's support for Nazi Germany during World War II being notable examples.
The country's struggle with xenophobia has been further exacerbated by its inability to publicly apologise for its past mistakes, particularly its role in World War II. Instead of contrition, Austria has often responded with defiance, feeling that it has been unfairly singled out due to its size rather than its actions. This has hindered the country's reintegration within the community of democratic nations.
However, it is important to note that Austria has been taking steps to address these issues. The country has placed a high emphasis on combating racism and xenophobia through concrete measures such as promoting equal treatment, fighting stereotypes, and encouraging integration. Austria has also strengthened its protection against discrimination and hate crimes under criminal law and established the principle of equal treatment in its Constitution. Additionally, Austria has been an active supporter of the European Fundamental Rights Agency (FRA), demonstrating its commitment to upholding human rights standards within the EU.
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Austria's reluctance to apologise for its past
Austria has been described as the "Japan of Europe", a country that is unable to apologise for its past mistakes. During World War II, many Austrians actively collaborated with the Nazi regime, and the country has never fully acknowledged this aspect of its history. Instead, it has preferred to focus on the Austrians who resisted Hitler.
Austria's reluctance to apologise may be partly explained by the precedent set by Kurt Waldheim, the former Austrian president who lied about his wartime role. This incident caused a severe reaction in Europe, suggesting that Austria was willing to repeat its past mistakes. Additionally, Austria's proximity to Germany may have influenced its actions during the war, and the country may still feel humiliated by its defeat and loss of empire.
Rather than expressing contrition, Austria has responded to international sanctions with defiance. The country feels it has been singled out due to its size rather than its actions. As a former empire, Austria takes pride in its post-World War II economic recovery and feels misjudged by the international community.
Austria's far-right Freedom Party (FPÖ) has attempted to implement hard-line migration restrictions, including stricter welfare access for asylum seekers. However, the recent formation of a coalition government has prevented the FPÖ from taking power, despite winning the most votes in the election. The new government has reaffirmed Austria's commitment to Ukraine and its support for EU-wide sanctions against Russia.
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Austria's media landscape during the pandemic
Austria's response to the COVID-19 pandemic has been largely successful, with the country flattening the curve of infections and deaths, allowing for a gradual reopening of the economy. The Austrian government implemented an early lockdown on March 16, 2020, which included the closure of non-essential businesses, schools, and government facilities, as well as stay-at-home orders and remote work recommendations. This early action, combined with a likely lower number of infected people compared to other countries, contributed to Austria's effective containment of the virus.
However, the pandemic also revealed challenges and issues within Austria's media landscape. During the pandemic, a critical movement emerged that questioned the effectiveness of vaccines and the government's response. Fabricated or falsified content spread across social media, websites, and traditional media, often shared by media channels themselves to increase their reach. This spread of misinformation significantly accelerated hateful sentiments towards individuals perceived as "aliens."
The tourism and culture sector, which employs one-sixth of the Austrian workforce, was severely impacted by the pandemic. The early lockdown and subsequent reopening may have helped minimize economic disruption, but the sector still faced significant challenges. The Austrian government's policy of short-term work (Kurzarbeit) played a crucial role in keeping millions of workers employed who otherwise may have lost their jobs.
Overall, Austria's media landscape during the pandemic was characterized by a mix of successful government responses, economic challenges, and the spread of misinformation. While the early lockdown and gradual reopening helped crush the curve of infections and deaths, the tourism and culture sector suffered significant impacts. Additionally, the spread of fabricated content and misinformation, particularly on social media, contributed to increasing hateful sentiments within Austrian society.
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Austria's education system
Compulsory schooling in Austria starts on September 1st following a child's sixth birthday and lasts for nine years, including one year of preschool, four years of primary school, and four years of lower secondary school. During secondary school, students differentiate between basic and advanced courses. After completing compulsory schooling, students can attend a high school called "Gymnasiale Oberstufe" or a vocational secondary school called "Berufsbildende höhere Schule." Austrian legislation prescribes five years of secondary education, usually for students aged 10 to 15. At age 16, students may choose either a vocational or academic track based on their interests and strengths. The vocational track focuses on practical life skills and apprenticeship preparation.
Austria has a strong education system, with the government investing heavily in education and professional development, ranking among the highest in OECD countries. The country offers a wide range of adult education programs and institutional diversity, including universities, universities of applied sciences, and vocational training. The universities of applied sciences have contributed to improving tertiary entry and graduation rates.
However, debates about educational policy in Austria persist due to different perspectives on the strengths and weaknesses of the traditional education system. Criticism has been directed at the Austrian Matura, arguing that it encourages rote learning, hinders creativity, and does not account for the constantly evolving body of knowledge. Additionally, the increased immigration of foreigners has caused concern among Austrians, who fear their social welfare system and cultural identity may be threatened, potentially impacting the education system.
To address these challenges, Austria has committed to transforming its higher education system through the Bologna Process, distinguishing between Bachelor's and Master's degrees. Special remedial and intercultural programs are also being developed to support students with inadequate mastery of German, ensuring the compulsory school system fulfills its educational and social roles.
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Frequently asked questions
Austria's economy has been struggling since 2012, with a low GDP and soaring unemployment rates. This is partly due to the relocation of research activity to Eastern Europe, which lowered growth in Austria and boosted growth in Eastern Europe.
Austria has had a tense relationship with the EU due to its far-right politics and xenophobic tendencies. The EU has taken symbolic measures against Austria, such as receiving its ambassadors at the lowest diplomatic level, which has forced Austria to confront its past and present identity.
The COVID-19 pandemic has had significant implications on the Austrian media landscape, with many journalists working from home, decreased newspaper pages, cancelled radio shows, and the inability to conduct face-to-face interviews. Additionally, the pandemic has amplified the economic pressure on Austrian media outlets, resulting in financial losses and job departures.
Austria's response to COVID-19 has been heavily scrutinized, particularly regarding the events in Ischgl, a ski town in Tirol where thousands of European tourists got infected. There has also been a decline in trust in the politicians handling the crisis, which has transferred to skepticism towards the media.































