Dates of last and next legislative elections: L. House 2002/2006
U. House Varies by province

Head of state: President Thomas Klestil

AT THE LAST ELECTION

Austria is a federal, multiparty democracy. The chancellor (premier) holds real executive power.

Profile

The socialist SPÖ and the conservative ÖVP have dominated postwar politics. They governed Austria in coalition for 20 years until 1966, and then in 1987, after a period when the SPÖ had dominated, formed the "grand coalition" in power until 1999. Their hold on power, with no real alternative, reached into all areas of public life. The far-right FPÖ achieved a breakthrough in elections in October 1999, when it came equal second with the ÖVP. A new right-wing coalition of the ÖVP and the FPÖ, headed by ÖVP leader Wolfgang Schüssel, was met with regional and international criticism. FPÖ leader Jörg Haider drew strong condemnation, having openly expressed admiration for some of Hitler's policies. He remained a driving force behind the party, despite resigning formal leadership in 2000. In September 2002 the ruling coalition collapsed over FPÖ opposition to flood damage taxes, prompting fresh elections. Though the ÖVP's popularity reached a 40-year high, and support for the FPÖ dwindled, the coalition was re-formed in February 2003 when the ÖVP could find no other partner.

The nine provincial assemblies and governments have considerable powers. Vienna, with provincial status, has long been dominated by the SPÖ.

Main Political Issue

Relations with EU partners

Austria's population is divided over the merits of EU membership. While the farming lobby remains apprehensive of EU agricultural policies, the country as a whole has benefited from lower food prices and greater consumer choice. Fears that membership is eroding national identity, as well as encouraging an influx of cheap east European labor, provided an electoral basis for the nationalist FPÖ. In turn, EU states responded to the FPÖ's inclusion in the ruling coalition in 2000 by imposing diplomatic sanctions for seven months.

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004