THE GEOGRAPHY (Foreign Office UK)
Area: 83,858 sq km (32,369 sq miles)
Population: 8.1 million
Capital City: Vienna
Ethnic Groups: German 98%. Other
ethnic groups include Croats, Slovenes,
Hungarians, Czechs, Slovaks, Roma
Languages: German (98%)
Religion(s): Roman Catholic (78%),
Protestant (5%), Other (17%)
Currency: euro (EUR)
Major political parties: Social
Democratic Party (SPÖ); People's
Party (ÖVP); Freedom Party (FPÖ);
Greens.
Government: Federal Republic,
Parliamentary Democracy
Head of State: President Thomas Klestil
(re-elected 1998)
Federal Chancellor: Wolfgang Schüssel
(ÖVP)
Foreign Minister: Benita
Ferrero-Waldner (ÖVP)
Membership of international
groupings/organisations: In 1995
Austria joined the European Union
(EU). Austria is also a member of the
United Nations, the Council of Europe
(CoE) and the Organisation for
Security and Co-operation in Europe
(OSCE).
GEOGRAPHY
Located in southern Central Europe,
Austria's territory includes the
Eastern Alps (which cover two thirds
of its surface area) and the Danube
region. Austria's major area of
economic activity is in the east where
it is less mountainous.
Highest mountain: Grossglokner (3,797
metres / 12,530 feet)
Longest river: The Danube flows
through Austria for 350 km (220
miles)
Terrain: Alpine (64%) northern
highlands (10%) and lowlands to the
east (26%)
THE HISTORY (Foreign Office UK)
Modern Austrian history begins with
the defeat of the Axis Powers in the
First World War, when the
non-German speaking territories of
the former Habsburg Empire achieved
independence. The Republic of Austria
was established in 1918. The inter-war
period was marked by severe social
conflicts arising from economic and
political instability, and this culminated
in Hitler's forcible incorporation of
Austria into the German Reich in 1938.
It was not until May 1955 that a State
Treaty was finally signed after
exceptionally long and difficult
negotiations. The Austrian Government
had agreed that Austria should become
a neutral state, and subsequently
passed a constitutional law to that
effect. As a result, the Soviet Union
also signed the treaty, and the Soviet
Army departed from the eastern zone
of Austria which it had occupied since
1945. Since 1989 Austria has found
itself presented with new opportunities
and challenges as a result of East-West
rapprochement and the collapse of the
former Soviet Union, and its own
accession to the European Union in
1995.
BBC Timeline of Austria
POLITICS
Federal Elections 2002
The first Conservative/Freedom party
(ÖVP/FPÖ) coalition survived several
crises during its 2½ year partnership,
but eventually collapsed in September
2002. Elections followed on 24
November. The final results were as
follows: ÖVP – 42.3%, SPÖ – 36.5%,
FPÖ – 10.0%, Greens – 9.5%. After
lengthy coalition negotiations, it was
announced on 28 February that the
ÖVP form a second coalition
government with the FPÖ, now led by
Herbert Haupt (Vice Chancellor in the
new government).
Austria has been governed for much of
the past fifty years by so-called Grand
Coalitions, formed by the two largest
parties in Parliament, the Socialists and
Conservatives respectively. However,
the far-right Freedom Party (FPÖ)
began to attract votes in the
mid-nineties, and eventually formed a
coalition with the Conservatives (ÖVP)
in February 2000, amid considerable
international uproar over its alleged
extremism.
EU 14 Measures
Austria's 14 EU partners (EU14) were
concerned by the inclusion in 2000 in
the government of the FPÖ. On the
same day as the new Austrian
government was formed, the EU14
agreed a series of measures to
restrict bilateral contacts with Austria.
In July 2000, the governments of the
14 member states tasked Martti
Ahtisaari (former President of
Finland), Jochen Frowein (Director,
Max Planck Institute in Heidelberg) and
Marcelino Oreja (former Foreign
Minister of Spain) to report on the
situation in Austria. The Three Wise
Men, as they were known, concluded
that the EU 14 measures had proved
effective in influencing the Austrian
government and that the Austrian
government had met its commitment to
uphold common democratic values.
Their report raised concerns about the
FPÖ, but in view of the performance
of the Austrian government as a whole,
the fourteen member states decided
collectively to lift the measures on 12
September 2000.
THE ECONOMY (Foreign Office UK)
Basic economic facts
GDP: US$ 189.8 bn (2000)
GDP per head: US$ 24,502 (2002)
Annual Growth: 1.3% (2002)
Inflation: 2001 average 2.74%
Major Industries: foodstuffs, luxury
commodities, mechanical engineering
and steel construction.
Major trading partners: 63% of total
exports to other EU countries, 19.8% to
the former Soviet Union countries in
the first quarter of 2001.
Trade Partners UK country profile:
Austria
Economic information
In recent years, Austria has enjoyed
stable economic growth, with GDP
reaching 1.5 % in 2003. Growth
forecasts for 2002 average 1.5%, and
2.5% for 2003. Unemployment rose to
just above 4% in 2002; while inflation
has been steady at 1.9%. In April 2002
Austria and Germany had the lowest in
the Eurozone at 1.6% (recorded by
Eurostat). A 'Zero deficit' was
achieved in 2001, owing in part to
unexpectedly punctual tax payments.
Tourism has been a strong growth
area following 11 September 2001, and
combined with the leisure industry,
contributed 16.2% to the GDP. The
government expects economic gains
from EU enlargement, and is keen to
promote Foreign Investment. The
economic agenda includes reducing
taxation and further investment in
education and research. For the most
up to date information (available in
English) on Austrian economic
indicators visit:
Austrian Institute of Economic
Research
Trade and Investment with the UK
The UK is Austria's 7th largest
supplier. In 2002, visible UK exports to
Austria totalled £1.2 billion. Most
Austrian business people (especially the
younger generation) are proficient in
English.
INTERNATIONAL RELATIONS
Austria joined the European Union in
1995. It is a member of the UN, and
hosts the Secretariat of the
Organisation for Security and
Cooperation in Europe (OSCE) in
Vienna. Since 1955, Austria has been a
neutral state, and it is not a member of
NATO. Because of its geographical
position and history, Austria has strong
links with countries in eastern Europe,
particularly neighbouring accession
countries to the EU.
Austria's Relations with the UK
Bilateral relations with the UK are
good. The UK continues to maintain
close links with Austria. In 2002
several bilateral visits took place,
including a visit to the UK by the
Austro-British Parliamentary
Friendship Group.
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