Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0006.TXT

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National Trade Data Bank
ITEM ID     : ST BNOTES AUSTRIA
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - AUSTRIA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1993
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | AUSTRIA

BACKGROUND NOTES:  AUSTRIA
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE

OCTOBER 1992
Official Name:  Republic of Austria


PROFILE

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.

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%.

Government
Type:  Parliamentary democracy.  Constitution:  1920 (reinstated
December 1945).

Branches:  Executive--Federal President (chief of state),
chancellor (head of government), cabinet.  Legislative--bicameral

Federal Assembly (parliament).  Judicial--Constitutional Court,
Administrative Court, Supreme Court.

Political parties (in parliament):  Social Democratic Party,
People's Party, Freedom Party, Green-Alternative Movement
(environmental party).  Suffrage:  Universal over 19.

Administrative subdivisions:  Nine Laender (provinces).

Defense (est.):  1% of GDP.

Flag:  Three horizontal bands--red, white, and red; flag may also
have the national emblem, a black eagle, centered in the white
band.

Economy
GDP (1991):  $163 billion.  Per capita income (1991):  $20,820.
Natural resources:  Iron ore, crude oil, natural gas, timber,
tungsten, magnesite, lignite, cement.

Agriculture (3.3% of 1991 GDP):  Products--livestock, forest
products, grains, sugar beets, potatoes.

Industry (40% of 1991 GDP):  Types--iron and steel, chemicals,
capital equipment, consumer goods.

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.

Principal partners--European Community, European Free Trade
Association, United States

Exchange rate (1991 avg.): 11 Austrian schillings=US$1.

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.

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.

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.

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.

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.

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.

Subsequently, Austria was divided into zones of occupation
similar to Germany's.  A Socialist elder statesman, Dr. Karl
Renner, successfully organized an Austrian administration.

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.

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.

Under its provisions, all occupation forces were withdrawn by
October 25, 1955.  Austria became free and independent for the
first time since 1938.

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.

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.

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


Austria maintains an embassy in the United States at 3524
International Court, NW, Washington, DC  20008 (tel.
202-895-6700).  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.

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.

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).

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.

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.

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%.

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.

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.

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."

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.

 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.

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.

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.

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).

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.

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.

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:

--  The present friendly relations be maintained and
strengthened;
--  Austria remain free and independent; and
--  Its political and economic stability be maintained.

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

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.

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.

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.

Telecommunications:  Telegraph and telephone services are
efficient. Vienna is 6 hours ahead of eastern standard time.

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.

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.

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.

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. [phone].)

Published by the United States Department of State  --  Bureau of
Public Affairs  Office of  Public Communication
Washington, DC  --  October 1992

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.

For sale by the Superintendent of Documents, US Government
Printing Office, Washington, DC  20402.