The waltz of coalitions
There are currently five parties represented on the National Council(Nationalrat):
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 SPÖ and FPÖ fall. The Conservative Party was faced with a difficult situation: the ÖVP-SPÖ "grand coalition", 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. Since 2025, the country has been governed by a three-party ÖVP-SPÖ-NEOS coalition
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 those Western countries now able to compete internationally within the EU. The adoption of the euro has added to the momentum, and Austria has rapidly become an increasingly attractive business location for entrepreneurs, given its highly skilled workforce and genuine quality of life.
In 2023, Austria boasted an unemployment rate of 5.1%, one of the lowest in Europe. In fact, Austria is one of the major beneficiaries of the European Union's eastward enlargement. Gross domestic product per capita now places Austria among the richest countries in the European Union. However, the relocation of companies to the new member states has begun to cause concern. After years of prosperity, Austria is experiencing a certain economic sluggishness, and its growth rate, which had been in excess of 4% for several years, is experiencing a sharp recession of around 1% (2024). However, a rebound is expected in 2025, along with a slight reduction in the unemployment rate.
Natural resources and agriculture
The country has a rich subsoil from which magnesite, graphite and iron ore are extracted. Along with Erzberg, Austria is home to Europe's largest iron ore mine. In addition to these mineral riches, Austria has immense water reserves, which provide two-thirds of its electricity from hydropower. And this energy is only exploited to 1/6th of its capacity! Then there's the fertile soil. The total cultivated surface area represents only 16% of the total land area. Yet the country is self-sufficient thanks to the rationalization of farming techniques and mechanization. The agricultural regions are located in the Pre-Alps, on the banks of the Danube and right up to the eastern borders. The development of organic farming is one of the components and challenges currently characterizing this sector. The development of solar energy parks is also tangible.
A dynamic and changing industry
While the Austrian economy is dominated by services, heavy industry (steelmaking, automotive) and construction are also strong performers. 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. Heavy industry is concentrated mainly in the Danube Valley and the capital - which is now increasingly home to high-tech industries such as precision engineering and electronics. The nationalized steel industry produces pig iron, crude steel and rolled steel. In terms of manufactured goods, Austria stands out for its introduction of motorcycles, locomotives and textiles. However, given the threats to the global economy and the environment, Austria is committed to finding new technologies and new production directions. Austria has set itself the goal of achieving 100% renewable electricity by 2030, and to this end is significantly expanding the use of solar energy, with huge state-of-the-art parks. In 2023, the country's largest photovoltaic park was inaugurated in Bärnbach and Rosental, on a former landfill site, covering an area of 28 soccer pitches and capable of supplying electricity to 5,700 families.
Tourism: an important part of 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.
