A coalition between the Conservatives and the Greens
Currently, five parties are represented on the National Council:
Freedom Party of Austria (FPÖ), nationalist party
Greens - Green Alternative (Die Grünen)
Austrian People's Party (ÖVP)
NEOS - The New Austria and the Liberal Forum (includes the Liberal Forum (LIF) and the Young Liberals of Austria (JuLis))
Social Democratic Party of Austria (SPÖ)
In the September 2019 parliamentary elections, former Chancellor Sebastian Kurz's ÖVP party came out on top with over 37.5% of the vote. At the same time, the elections saw the fall of the SPÖ and FPÖ. The conservative party was faced with a difficult situation: the "grand-coalition" ÖVP-SPÖ, in power for over 40 years, was no longer an option, and the FPÖ intended to remain in opposition. Negotiations began between the ÖVP, the Greens and the centrist liberal party NEOS. On January1, 2020, a government pact was signed with the Greens. Since then, this unprecedented government has focused on developing a policy centered on the fight against immigration and environmental protection. In July 2021, 400 additional soldiers were mobilized to deal with the growing number of people apprehended at the border.
A prosperous European country
Joining the European Union has enabled Austria to transform its economy rapidly and effectively. The liberalization of economic sectors such as telecommunications, energy, banking and industry enabled it to join the ranks of Western countries capable of facing up to international competition. The adoption of the euro has reinforced the momentum generated by the European Union, and Austria has rapidly become an increasingly attractive business location for entrepreneurs, thanks to its highly qualified workforce and genuine quality of life.
In 2020, Austria had an unemployment rate of just 5.8%, significantly lower than France's 8.6%. Little Austria is one of the major beneficiaries of the European Union's eastward enlargement. Thanks to its geographical location, the country already counts six new members among its biggest customers. Gross domestic product per capita today places Austria among the richest countries in the European Union. However, the relocation of companies to the new member states has already begun, and is causing concern among the population. Having borne the full brunt of the 2008 economic crisis, Austria is now enjoying a relatively sluggish economy, with a growth rate of 4.2%.
Natural resources and agriculture
The country has a rich subsoil from which magnesite, graphite and iron ore are extracted. Austria has the largest iron ore mine in Europe, the Erzberg. In addition to these mineral resources, Austria has huge water reserves, which provide two-thirds of its electricity from hydroelectric power. And this energy is only used to 1/6th of its capacity! Then there is the fertile soil. The total cultivated area represents only 16% of the surface. However, the country is self-sufficient thanks to the rationalization of agricultural techniques and mechanization. The agricultural regions are located in the Pre-Alps, on the banks of the Danube and up to the eastern borders. The development of organic farming is one of the components and challenges that currently characterise this sector.
A dynamic and changing industry
Although the Austrian economy is dominated by services, the heavy industry sector (steel, automotive) and the construction sector are successful. In Upper Austria, for example, this sector (chemical industry, mechanical engineering, automotive and metal processing) accounts for 54% of the local economy and employs 60% of the workforce. The heavy industries are mainly concentrated in the Danube Valley and in the capital city - which is now increasingly home to high-tech industries such as precision engineering and electronics. The steel industry, which has been nationalised, produces pig iron, crude steel and rolled steel. On the manufacturing side, Austria is distinguished by the introduction of motorcycles, locomotives and textiles. However, in view of the threats to the global economy and the environment, Austria is seeking new technologies and new production directions.
Tourism: a major contributor to the economy
Tourism remains one of the pillars of the Austrian economy. Since the turn of the century, the number of tourists has almost doubled to over 30 million a year, generating sales of over 20 billion euros (almost 6% of gross national product). The collapse in the number of overnight stays during the Covid epidemic had a heavy impact on the sector. But that's all in the past now. Fortunately, 1 in 5 jobs in Austria is linked to this activity! During the border closure, efforts were made and initiatives developed to boost domestic tourism. Whatever the case, Austria is still facing up to the challenge with rigor, staying the course of its economic development, respecting the environment and making the most of its heritage, which remains one of its major assets. Its national anthem sums it all up: "Land of mountains, land on the river". Tourism is very evenly distributed throughout the region, with a wide range of accommodation options in both summer and winter. Germans are the first to come to Austria. They outnumber tourists of other nationalities ten to one. They are followed by the Dutch, the Swiss, the Italians, the British and the Americans.
