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AUSTRIA
Year of EU entry 1995
Political system Federal Republic
Capital city Vienna
Total area 83,858 km2
Population 8.1 million
Currency euro |
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Overview
The Alps dominate the western and southern parts of Austria while the eastern provinces, including Vienna, the capital, lie in the Danube basin.
Until the end of the First World War, Austria was for centuries the centre of a vast empire which controlled much of central Europe. Austria is now a federal republic, consisting of nine states.
Vienna hosts a number of international organisations, including the Secretariat of the Organisation for Security and Cooperation in Europe, the International Atomic Energy Agency and the Organisation of Petroleum Exporting Countries.
The Austrian Parliament has two chambers. The National Council, or Nationalrat, has 183 members, who are elected by direct popular vote to serve a four-year term. The Federal Council, or Bundesrat, is the upper house with around 62 members who represent each province. Its members serve a four or six-year term.
Austria has a rich cultural heritage. Wolfgang Amadeus Mozart occupies a place of his own as a composer, while Franz Schubert is also one of Austria's greatest composers. In the world of philosophy and ideas, Sigmund Freud continues to provoke controversy while Ludwig Wittgenstein was one of the major influences in 20th century thinking. The paintings of Gustav Klimt are widely admired.
Austria has a mixed industrial and agricultural economy, while tourism is also an important source of income.
In cuisine, some of Austria's specialities like Wiener Schnitzel and Apfelstrudel have become international dishes which need no translation.
Economy
Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. The Austrian economy also benefits greatly from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe. The economy features a large service sector, a sound industrial sector, and a small but highly developed agricultural sector. Membership of the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the new EU economies. The current government has successfully pursued a comprehensive economic reform programme, aimed at streamlining government, creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location, pursuing a balanced budget, and implementing effective pension reforms. Weak domestic consumption and slow growth in Europe have held the economy to growth rates of 0.4% in 2002, 1.4% in 2003, 2.4% in 2004, and 1.8% in 2005. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria will need to continue restructuring, emphasising knowledge-based sectors of the economy, and encouraging greater labour flexibility and greater labour participation by its aging population.
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