Discover Tyrol : Current issues

Political System at a Glance

On the Austrian side. Austria is a parliamentary federal republic with 9 Länder (provinces), including the Land of Tyrol, comprising North Tyrol (Nordtirol in German) and East Tyrol (Osttirol). Austria's president, Alexander Van der Bellen, supported by the Greens, has been in office since his re-election in October 2022 for a second six-year term, running until 2028. As head of state, he plays a significant role in diplomacy and government appointments, although his powers are less extensive than those of the French president. The main political voice is that of the Chancellor. The Austrian Chancellor, Karl Nehammer, heads the federal government, which comprises two chambers: the National Council (which votes on legislation) and the Federal Council (the chamber of the provinces, with veto power over legislation). After Sebastian Kurz resigned in October 2021 following a corruption scandal, Nehammer took over as head of the ÖVP party and the government. Austria continues to focus on policies centered on environmental protection and immigration management, including increased surveillance of its eastern and southern borders.

Italy. The provinces of South Tyrol and Trentino, home to Bolzano and Trento respectively, continue to enjoy a special status of autonomy within the Trentino-Alto Adige region. This autonomous status is also shared with other Italian regions such as Sicily, Sardinia, Friuli-Venezia Giulia and Valle d'Aosta. Since 1972, the provinces of Bolzano and Trento have enjoyed almost all of the region's administrative, legislative and fiscal powers. The province of Bolzano is particularly noted for having the most extensive autonomous status in Europe. Politically, South Tyrol is predominantly under the influence of the SVP (South Tyrolean People's Party), while in Trentino it's the Lega, led by Matteo Salvini, that dominates following the 2018 elections. Maurizio Fugatti, backed by an agreement between the SVP and the Lega, remains president of the Trentino-Alto Adige region. At national level, since 2021, Italy has been led by the President of the Council of Ministers, Giorgia Meloni. The President of the Republic, Sergio Mattarella, elected by Parliament every seven years, occupies an essentially representative position with little direct influence on day-to-day politics. However, he does have the power to dissolve the chambers of Parliament after consultation with their presidents.

Economy at a Glance

Tyrol, historically a thriving region, is enjoying a remarkable post-pandemic economic recovery. In 2023, Italy shows clear progress, with GDP per capita of $41,061, up from $35,451 in 2020. Austria is not to be outdone, with GDP climbing to $70,889 from $49,215. These figures, well above the European average of $47,063, testify to the region's economic robustness. On the unemployment front, although specific data for Tyrol in 2023 are absent, the stabilization of the rate at 6.0% in the EU at the end of 2022 suggests a similar improvement. (Source: OECD statistics)

Industrial location. Thanks to its central location in Europe, Tyrol is a trade crossroads between Eastern and Western Europe. For several decades now, the crisis in the industrial sector has had a lasting impact on Northern Italy, particularly in the automotive sector. Nevertheless, large companies are concentrated along the main arteries: the Inn valley in Austria (Innsbruck, Schwaz, Kufstein), and the Isarco and Adige valleys in Italy (Trento, Bolzano, Vipiteno). Mechanical engineering, woodworking and food processing are among the industrial sectors with the highest representation. Last but not least, there are industries linked to winter sports and the mountains, such as Leitner, one of the leading companies specializing in cable transport, with headquarters in Vipiteno. Another example is Salewa, based in Bolzano, which designs mountain clothing and mountaineering equipment.

The role of tourism. Over the years, tourism has become one of the major pillars of the Tyrolean economy. No fewer than 10 million tourists visit the Austrian Tyrol every year, and almost 6 million in the Italian Tyrol alone. Travellers are attracted by mountain activities in search of nature, authenticity and sporting activities: sublime ski areas, well-maintained and clearly-marked hiking trails, numerous well-equipped refuges, vias ferratas, mountaineering, mountain biking... not forgetting wine tourism, which has developed extensively along the Strada del Vino south of Bolzano and in Trentino.

The role of agriculture. Tyrol still boasts a large number of family-run farms and agricultural structures, even if many have reoriented or simply diversified their activities towards tourism. The Austrian Tyrol is renowned for the quality of its cattle, sheep and pig farming (meat and dairy products). Agriculture in the Austrian Tyrol remains a minor sector, however, with Austrian farming areas concentrated along the Danube and in the east of the country. In the Italian Tyrol, apple-growing is quite impressive: in some places, you can drive dozens of kilometers past fields of apple trees! Just to give you an idea, around one in ten apples consumed in the European Union comes from South Tyrol, representing almost 2% of world production. Grape-growing also plays an important role, with around 14,000 hectares cultivated in Italian Tyrol alone. In Trentino-Alto Adige, in the heart of the Dolomites, several valleys produce a number of famous vintages. The region is also a major producer of dairy products (try Merano yoghurt!) and poultry products. Italy is also Europe's leading producer of quality products (PDO, PGI or TSG). It is also one of the leaders in organic farming in the EU and the leading producer of high value-added wines. As is often the case, the price of land remains an obstacle to the development of the agricultural sector and to the installation of young farmers in particular. Other obstacles include the cost of modernizing structures, as well as exposure to natural hazards: in 2018, storm Vaia ravaged thousands of hectares of forest and many farms, particularly in the Dolomites. And climate change is not likely to improve this situation!

Natural resources. As far as natural resources are concerned, Tyrol's subsoil is home to magnesite, graphite and iron ore. The renewable energy sector is relatively well developed: immense water reserves provide the region with hydroelectric power to cover no less than two-thirds of its electricity needs. The use of fertile soils for traditional, sustainable and organic farming is another source of income for Tyrol, and forestry contributes to the region's healthy paper industry.