Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/austria.bkg

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#CARD:Austria:Background Notes
BACKGROUND NOTES:  AUSTRIA
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE
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OCTOBER 1992
Official Name:  Republic of Austria
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PROFILE
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Geography
Area:  83,857 sq. km. (32,377 sq. mi.); slightly smaller than Maine.
Cities:  Capital--Vienna (pop. 1.7 million).  Other cities--Graz, Linz,
Salzburg, Innsbruck.  Terrain:  Mountainous and hilly.  Climate:
Continental temperate.
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People
Nationality:  Noun and adjective--Austrian(s).   Population (1991):  7.8
million.  Annual growth rate:  1.2%.  Ethnic groups: German 98%,
Croatian, Slovene.  Religion: Roman Catholic 89%.  Language:
German 98%.  Education:  Years compulsory--9.  Attendance--95%.
Literacy--98%.  Health:  Infant mortality rate--8/1,000.  Life
expectancy--72 yrs. men, 79 yrs. women.  Work force (3.4 million):
Industry and commerce--35%.  Agriculture and forestry--7%.
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Government
Type:  Parliamentary democracy.  Constitution:  1920 (reinstated
December 1945).
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Branches:  Executive--Federal President (chief of state), chancellor
(head of government), cabinet.  Legislative--bicameral
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Federal Assembly (parliament).  Judicial--Constitutional Court,
Administrative Court, Supreme Court.
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Political parties (in parliament):  Social Democratic Party, People's
Party, Freedom Party, Green-Alternative Movement
(environmental party).  Suffrage:  Universal over 19.
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Administrative subdivisions:  Nine Laender (provinces).
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Defense (est.):  1% of GDP.
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Flag:  Three horizontal bands--red, white, and red; flag may also have
the national emblem, a black eagle, centered in the white band.
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Economy
GDP (1991):  $163 billion.  Per capita income (1991):  $20,820.
Natural resources:  Iron ore, crude oil, natural gas, timber, tungsten,
magnesite, lignite, cement.
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Agriculture (3.3% of 1991 GDP):  Products--livestock, forest products,
grains, sugar beets, potatoes.
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Industry (40% of 1991 GDP):  Types--iron and steel, chemicals, capital
equipment, consumer goods.
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Services:  58% of 1990 GDP.

Trade (1991):  Exports--$41 billion:  iron and steel products, timber,
paper, textiles, electro-technical machinery, construction and industrial
machinery, chemical products.  Imports--$51 billion:  machinery,
vehicles, chemicals, iron and  steel, metal goods, fuels, raw materials,
foodstuffs.
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Principal partners--European Community, European Free Trade
Association, United States

Exchange rate (1991 avg.): 11 Austrian schillings=US$1.
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PEOPLE
Austrians are a homogenous people; 98% are native German speakers.
Only two significant minority groups exist--about 15,000 Slovenes in
Carinthia (south-central Austria) and some 18,000 Croatians in
Burgenland (on the Hungarian border).  The Slovenes form a closely
knit community.  Although their rights are protected by law and
respected in practice, there has been some controversy over the use of
the Slovenian language in schools where there is a Slovene majority.
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The present boundaries of Austria--once the center of the empire which
was the second largest state in Europe--were established in accordance
with the Treaty of  St. Germain in 1919.  Many Austrians, particularly
near Vienna, still have relatives in Czechoslovakia and Hungary.
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About 89% of all Austrians are Roman Catholic.  The church abstains
from political activity; however, lay Catholic  organizations are aligned
with the conservative People's Party.  The Social Democratic Party long
ago shed its anti-clerical stance.  A small Protestant minority is located
mainly in Vienna, and in the Carinthian Mountains and Burgenland.
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HISTORY
The Austrian Empire played a decisive role in Central European history.
It occupied a strategic position astride the
southeastern approaches to Western Europe and the north-south routes
between Germany and Italy.  Although present-day Austria is only a
tiny remnant of the old empire, it still occupies this strategic position.
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Soon after the Republic of Austria was established at the end of World
War I, it not only had to redesign a government meant to rule a great
empire into one that would govern only 6 million citizens but also faced
catastrophic inflation.  In the early 1930s, worldwide depression and
unemployment added to these strains and shattered traditional Austrian
society.  These economic and political conditions led in 1933 to a
dictatorship under Engelbert Dollfuss.  In February 1934, civil war
broke out, and the Social Democratic Party was suppressed.  In July,
the National Socialists attempted unsuccessfully to seize power and
assassinated Dollfuss.  In March 1938, Austria was incorporated into
the German Reich through the Anschluss.
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At the Moscow conference in 1943, the Allies declared their intention to
liberate Austria and reconstitute it as a free and independent state.  In
April 1945, both East and West forces liberated the country.
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Subsequently, Austria was divided into zones of occupation similar to
Germany's.  A Socialist elder statesman, Dr. Karl Renner, successfully
organized an Austrian administration.
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General elections were held in November 1945, and the conservative
People's Party obtained 50% of the vote and 85 seats in the National
Council (lower house of the parliament).  The Socialists won 45% and
76 seats, and the Communists won 5% and 4 seats.  The ensuing three-
party government held office until 1947, when the Communists left the
government.  During that year, the People's Party and the Socialists
formed a coalition that governed until 1966.
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Under the 1945 Potsdam agreements, the Soviets took control of
German assets in their zone of occupation.  These included
manufacturing plants, constituting 7% of all Austrian industry; oil
resources, which accounted for 95% of the nation's oil production; and
refineries, which accounted for about 80% of Austria's refinery
capacity.  These properties were returned to Austria under the Austrian
State Treaty, signed at Vienna on May 15, 1955.  The treaty came into
effect on July 27 of that year.
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Under its provisions, all occupation forces were withdrawn by October
25, 1955.  Austria became free and independent for the first time since
1938.
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GOVERNMENT
The Austrian president convenes and discontinues parliamentary
sessions and, subject to certain conditions, can dissolve parliament.
However, no Austrian president has dissolved parliament in the Second
Republic.  The custom is for parliament, itself, to enact a law calling
new elections. The president requests a party leader, usually the leader
of the strongest party, to form a government.  Upon the
recommendation of the federal chancellor, the president also appoints
cabinet ministers.   No one can become a member of the government
without the approval of the president.

 The Federal Assembly (parliament) is composed of two houses--the
National Council (Nationalrat), or lower house, and the Federal Council
(Bundesrat), or upper house.  Virtually all legislative authority is
concentrated in the National Council.  Its 183 members are elected for a
maximum  4-year term from nine electoral districts, according to a
complicated system of proportional representation.  The National
Council may dissolve itself by a simple majority vote or it may be
dissolved by the president on the recommendation of the chancellor. The
Federal Council consists of 63 members elected by the legislatures of
the nine provinces for  4- to 6-year terms.  Seats are allocated on the
basis of population, with each province guaranteed at least three.  The
Federal Council is restricted to reviewing legislation passed by the
National Council, and has only delaying, not absolute veto, powers.

 The highest courts of Austria's independent judiciary are the
Constitutional Court, which has jurisdiction over constitutional matters;
the Administrative Court, which handles bureaucratic disputes; and the
Supreme Court, for civil and criminal cases.  Cases in the
Administrative and Supreme Courts concerning constitutional issues can
be appealed to the Constitutional Court.  Justices of the three courts are
appointed by the president for specific terms.
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Austria's nine Laender (provinces) are headed by governors elected by
the provincial legislatures.  Although most authority, including police,
rests with the federal government, the provinces have considerable
responsibility for welfare matters and supervision of local
administration.  Strong provincial and local loyalties are based on
tradition and history.
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Principal Government Officials:
Federal President--Thomas Klestil
Federal Chancellor--Franz Vranitzky
Vice Chancellor--Gerhard Busek
Foreign Minister--Aolis Moch
Ambassador to the United States--Friedrich Hoess
Ambassador to the United Nations--Peter Hohenfellner
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Austria maintains an embassy in the United States at 3524 International
Court, NW, Washington, DC  20008 (tel. [phone]).  Consulates
general are located in New York, Chicago, and Los Angeles, with
honorary consulates in Atlanta, Boston, Buffalo, Cleveland, Denver,
Detroit, Honolulu, Houston,  Miami, New Orleans, Newark,
Philadelphia, San Francisco, San Juan, Seattle, and St. Paul.
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POLITICAL CONDITIONS
Since World War II, Austria has enjoyed political stability.  The two
major parties--People's Party and Social Democrats--which formed the
governing coalition during the period 1947-66, have the support of
about 75% of the electorate.  Extremist parties of the right and left have
had virtually no influence on government policy and usually receive less
than 1% of the vote.
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The Socialist Party, renamed the Social Democratic Party in June 1991,
traditionally draws its constituency from blue- and white-collar workers,
so that much of its strength lies in the urban and industrialized areas.  In
the past, the party advocated heavy state involvement in Austria's key
industries, the extension of social security benefits, and a full-
employment policy.  In the mid-1980s, the party began to swing toward
free market-oriented economic policies and balancing the federal budget,
and is now working to bring the country into the European Community
(EC).
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The People's Party's traditional constituency has been among liberal
farmers, big and small businesses, and lay Catholic groups.  Its centers
of strength are the rural regions of Austria.  In economic matters, the
party advocates conservative financial policies and privatization of much
of Austria's nationalized industry.

The Freedom Party has been a small- to medium-sized right leaning
party that attracts those who desire no association with the two major
parties. Recently, the party's mixture of populism and anti-
establishment themes have won increased support.  In provincial
elections in Vienna in 1991 the Freedom Party displaced the People's
Party to move into second position in city government. Nationally it
attracts approximately 15% of the vote.

The most recent Austrian parliamentary elections were held in October
1990 and produced a Socialist/People's Party coalition government.  In
these elections, the Social Democratic Party under its popular chairman,
Chancellor Franz Vranitzky, maintained its 43% plurality from 1986.
The People's Party, however, dropped from 41% to 32% of the vote.
The Freedom Party, under Joerg Haider, substantially increased its
share of the electorate from 10% to 17%.  Because of the new voting
patterns, the new government included a larger number of Socialist
cabinet members.
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ECONOMY
Austria has a social market economy in which the government plays an
important role.  Many of the country's largest firms were nationalized in
the early post-war period to protect them from Soviet takeover as war
reparations.  Currently, these state-owned corporations are intended to
operate largely as private businesses, and a number are being wholly or
partially privatized.  The government operates various state monopolies,
utilities, and services.  Austrian industry, banking, transportation,
services, and commercial facilities are well developed.

Although the nationalized industries, which include several iron and
steel works and chemical plants, are large industrial enterprises
employing thousands of people, most industrial and commercial
enterprises are smaller.
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Austrian farms, like those of other West European mountainous
countries, are small and fragmented.  Their products are relatively
expensive. Although Austrian farmers provide about 80% of domestic
food requirements, the agricultural contribution to gross domestic
product (GDP) has declined since 1950 to about 3.5%.
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Austria has achieved sustained economic growth in the post-war period.
During the 1950s, the average annual growth rate was more than 5% in
real terms and averaged about 4.5% through most of the 1960s.
Austria's economy through 1979 grew by 4.7% but began to taper off
in 1980. The growth rate during the past decade was still one of the
highest in the West. GDP increased by 3% in real terms in 1985.  After
a short fall to 1.2% in 1986, Austria's percentage growth climbed to a
healthy 4.6% in 1990 but fell to 3% in 1991.  Future GDP growth is
expected to be about 3% through 1996, and then to remain slightly
above the 2.2% growth expected for Europe.  The Central Bank's hard
schilling policy has helped to keep "imported" inflation to a minimum--
3.2% in 1985, and 1.4% in 1987.  In recent years, inflation has
remained relatively stable.  Prices rose 3.3% in both 1990 and 1991.
Inflation is anticipated at 3%-4% for the next several years.
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The reduction in the trade deficit,  the traditional surplus in services, and
high revenues from transit trade have resulted in a $1 billion schilling
current account surplus for 1990.  Unemployment in Austria remained
at 4.5% in 1983-84 but increased slightly to 4.8% in 1985.
Unemployment reached 5.2% and remained above the 5% level through
the end of the decade.  Levels have increased to 5.4% in 1990 and 5.8%
in 1991 and are expected to rise slightly over the next few years.
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Austria has a strong labor movement.  The Austrian Trade Union
Federation (ATUF) comprises constituent unions with a total
membership of more than 1.6 million, representing almost two-thirds of
the country's wage and salary earners.  Since 1945, the ATUF has
followed moderate policies and generally has cooperated with industry
and government anti-inflationary measures in what is known as
Austria's "social partnership."
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Exports of goods and services account for more than 40% of GDP.
Austria's main trading partners are members of the European
Community (EC), which accounted for 66% of Austrian merchandise
exports and 68% of its imports in 1991.  Since July 1, 1977, the
exchange of nearly all industrial goods between Austria and the
EC has been free from tariff barriers.  In order to share in the benefits of
the EC's internal market, Austria applied to join in July 1989.
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 Membership in the European Free Trade Association (EFTA), once an
important element in Austrian foreign trade, has lost much of its glamor
since Austria and its EFTA partners concluded bilateral free trade
agreements with the EC.  In 1991, EFTA countries accounted for 7% of
Austrian imports and 5% of exports.
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Total trade with the United States in 1991 reached $3.2 billion.  Imports
from the United States amounted to $2 billion, constituting a US market
share in Austria of 3.5%.  Austrian exports to the United States in 1991
were $1.2 billion or 3% of total Austrian exports.  As a rule, Austria has
experienced deficits in its merchandise trade, offset somewhat by
earnings from tourism and by long-term private capital.
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FOREIGN RELATIONS
The 1955 Austrian State Treaty ended the four-power occupation and
recognized Austria as an independent and sovereign state.  In October
1955, the Federal Assembly passed a constitutional law in which
"Austria declares of her own free will her perpetual neutrality."  The
second section of this law stated that "in all future times Austria will not
join any military alliances and will not permit the establishment of any
foreign military bases on her territory." In line with its desire to join the
European Community, and with the demise of the Warsaw Pact, Austria
has begun reassessing its definition of its neutrality.
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Austria shapes its foreign policy on the basis of neutrality.  Austrian
leaders also emphasize the unique role the country plays as a link
between East and West and as a moderator between the industrialized
and developing countries.  Austria is active in the United Nations and in
UN peacekeeping efforts.  It attaches great importance to participation in
the Organization for Economic Cooperation and Development  and other
international economic organizations, and has played an active role in
the Conference on Security and Cooperation in Europe (CSCE).
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Vienna is headquarters of the International Atomic Energy Agency and
the UN Industrial Development Organization.  Other international
organizations based in Vienna include the Organization of Petroleum
Exporting Countries and its Fund for International Development, and
the International Institute for Applied Systems Analysis.  Vienna hosted
the mutual and balanced force reduction talks, which resulted in the
November 1990 signing of the Treaty on Conventional Armed Forces in
Europe.  In 1986, Vienna hosted the follow-up meeting of the CSCE.
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Austria traditionally  has been active in what the Austrians call "bridge
building to the East," involving increasing contacts at all levels with
Eastern Europe and the states of the former Soviet Union.  Austrians
maintain a constant exchange of business representatives, political
leaders, students, cultural groups, and tourists, with the countries of
Central and Eastern Europe.  As a result, Austrian companies are very
active in investing and trading with the countries of Central and Eastern
Europe.  In addition, the Austrian Government and various Austrian
organizations provide assistance and training to support the changes
underway in the region.  They believe also that their country, as
gateway to the Danube River basin, is uniquely qualified for this role.
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US-AUSTRIAN RELATIONS
Austria's political leaders and people recognize and appreciate the
essential role played by US economic assistance through the Marshall
Plan in the rehabilitation of their country after World War II, and by the
United States in promoting the conclusion of the Austrian State Treaty.
It is in the interest of the United States that:
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--  The present friendly relations be maintained and strengthened;
--  Austria remain free and independent; and
--  Its political and economic stability be maintained.
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Principal US Officials:
Ambassador--Roy Michael Huffington
Deputy Chief of Mission--James W. Swihart
Counselor for Political Affairs--Alfreda E. Meyers
Counselor for Economic Affairs--Edward B. O'Donnell
Counselor Public Affairs (USIS)--Craig B. Springer
Counselor for Commercial Affairs--Benjamin N. Brown
Counselor for Administrative Affairs--Warren P. Nixon
Counselor for Agricultural Affairs--Robert J. Svec
Consul General--Mary McAteer-LeLaumier
Defense and Army Attache--Col. Peter S. Hoffman, USA
Consul General, Salzburg--Maryanne H. Martinez
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The US embassy in Austria is located at Boltzmanngasse 16, Vienna
1091 tel. (43) (1) 313-39 [After office hours: (43) (1) 319-5523].  The
US Consulate General in Salzburg is located at 51 Giselakai, 5020
Salzburg tel. (43) (662) 28-6-01.
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TRAVEL NOTES
Climate and clothing:  Vienna's climate is similar to that of the
northeastern US; clothing needs and tastes are about the same.  Wear
sweaters and light woolens during possible cool spells in summer.
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Health:  Local pharmacies are well stocked, and hospitals are adequate.
The US embassy can provide a list of English-speaking physicians and
dentists in Vienna.  Community health and sanitation are similar to that
in the United States; the Viennese are proud of their city's water, piped
in from mountain springs.
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Telecommunications:  Telegraph and telephone services are efficient.
Vienna is 6 hours ahead of eastern standard time.
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Transportation:  Public transportation in Vienna and other cities via bus,
streetcar, and subway is good.  Taxis are available 24 hours a day at
stands throughout Vienna.  Roads are good, though occasionally steep
on alpine passes.  Highways connect Vienna with Graz, Salzburg,
Innsbruck, and the German border.  The Austrian State Railway
provides service throughout the country and connections to Eastern and
Western Europe.
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Tourist attractions:  Austria has a number of widely differing tourist
areas:  Vienna and Salzburg; the  lake and mountain district of the
Salzkammergut; the Danube Valley, known for its vineyards, castles,
and monasteries; Burgenland, the easternmost province, centering on
the Lake Neusiedler Lake; Carinthia and the Alpine Provinces, for
hunting, fishing, and skiing.
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Further Information
Available from the Superintendent of Documents, US Government
Printing Office, Washington, DC  20402:
Key Officers of Foreign Service Posts   (Guide for Business
Representatives).  Revised biannually.
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For information on economic trends, commercial development,
production, trade regulations, and tariff rates, contact the Austrian desk,
IEP/EUR/OWE, Room 3411, International Trade Administration, US
Department of Commerce, Washington, DC 20230, (tel. 202-377-
2435.)
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Published by the United States Department of State  --  Bureau of Public
Affairs  Office of  Public Communication
Washington, DC  --  October 1992
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Department of State Publication 7955
Background Notes Series  --  This material is in the public domain and
may  be reprinted without permission; citation of this source is
appreciated.
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For sale by the Superintendent of Documents, US Government Printing
Office, Washington, DC  20402.   (###)
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