Picturesque shops of the Getreidegasse, Salzburg, Austria.© donstock/iStock.com
Labour and taxation
Government at various levels remains an important job provider, though to a much lesser degree than it was in the mid-20th century. Public sector jobs are protected, meaning that the government ensures automatic wage raises, certain bonuses, and most often tenure for life—conditions the private sector can hardly match. Public employment agencies are either at the federal, state, or community level or involved in such semipublic entities as social security, mandatory health insurance, public interest groups, unions, and religious administrations. They also may be in the entrepreneurial sector, as communities, states, and the federal government still engage in competitive business (e.g., real estate, housing, and even retail trade). This persistent government involvement has helped to keep unemployment in Austria at a rather low level for many years.
Government, management, and labour follow a wage-price policy that attempts to avoid social cleavages and strikes through cooperative participation in a joint wage-price commission. The representatives of the various segments of the economy—together with the chambers of commerce, agriculture, and labour and the federation of trade unions—have tried, with the active cooperation of the government, to coordinate wage and price movements. It is within this framework that collective bargaining takes place, and agricultural prices are also negotiated by the wage-price commission without infringement of the market economy.
The three important economic groups—labour, management, and farmers—have similar structures. Each has its own independent organization: the trade unions, the management association, and the farmers’ federation. At the same time, laws provide for semiofficial “chambers” for each group. This type of guild organization promotes cooperation in the governmental wage-price commission. Despite the divergent interests of the various groups, their cooperation has resulted in relative economic stability, and labour-management relations have remained unmarked by major crises.
Tax revenues are drawn chiefly from an income and wage tax and, in line with the countries of the EU, a value-added tax. Other sources of revenue include expressway usage permits, gasoline taxes, and one-time “environmental assessment” taxes on imported cars. Transportation and telecommunications
Austria has a dense road system inherited from its centuries as the hub of a vast continental empire. The country serves as an important link between western, northern, and central Europe and Italy, eastern Europe, and the Balkans. It has a highly developed transportation infrastructure of highways, passenger and freight trains, waterways, and air services.
Starting with the key link between Salzburg and Vienna, Austria has continued to develop its extensive expressway (autobahn) system. There are routes connecting Bregenz at the Swiss and German borders through Vorarlberg and Tirol, routes connecting Innsbruck with Italy, and routes connecting Salzburg and Vienna to Italy and the Balkans; these are often spectacular feats of highway engineering through unsurpassed Alpine scenery.
The Austrian rail network is controlled by Austrian Federal Railways (Österreichische Bundesbahnen; ÖBB), which is under state ownership but operates as an independent commercial enterprise. More than half of the track is electrified.
The Danube is the most important river connection between Germany and the Black Sea, and both freight and passenger vessels travel along this waterway. Although Austria is landlocked, its shipyards build vessels for Austria and for other countries.
Austrian Airlines, which began operations in March 1958, serves destinations in Europe, the Middle East, Asia, the Americas, and North Africa. Wholly owned by the Austrian government until the late 1980s, the airline was slowly privatized over the next two decades, culminating in its eventual takeover by Lufthansa in September 2009. Austria’s major airport is at Schwechat, near Vienna.
Telecommunications systems, including a fibre-optic network, are well developed. Cellular telephones are ubiquitous, and Austria boasted almost 1.5 cellular subscriptions per person in the early 21st century. During this period, rates of personal computer ownership and Internet usage were among the highest in the region, and almost three-fourths of Austrians were regular Internet users. Government and society Constitutional framework
Under the constitution of 1920—with minor changes made in 1929—Austria is a “democratic republic: its law derives from the people.” A federal republic, Austria consists of nine self-governing Länder (states): Burgenland, Kärnten (Carinthia), Niederösterreich (Lower Austria), Oberösterreich (Upper Austria), Salzburg, Steiermark (Styria), Tirol, Vorarlberg, and Wien (Vienna). The states have considerable autonomy.
In 1934 the Austrian constitution was replaced by an authoritarian regime under Chancellors Engelbert Dollfuss and Kurt von Schuschnigg. This in turn was eliminated by Adolf Hitler after Nazi Germany annexed Austria in 1938 (see Anschluss). With the liberation of Austria in 1945, the constitution of 1929 was revived and subsequently became the foundation stone of constitutional and political life in the “Second Republic.”
The federal president and the cabinet share executive authority. The president, elected by popular vote for a term of six years, acts as head of state and calls parliament into session. The president can dissolve parliament during the four-year legislative period, unless it dissolves itself by law, and can order new elections. The president also acts as commander in chief of the armed forces.
The head of government is the federal chancellor. The president appoints the chancellor, although the parliamentary majority actually determines the president’s choice. The chancellor nominates the other cabinet members, who also are officially appointed by the president. The cabinet cannot remain in office if it and its members do not enjoy the confidence of the majority of the National Council (one of the houses of parliament).
The parliament, known as the Federal Assembly, consists of two houses: the National Council (Nationalrat) and the Federal Council (Bundesrat). The National Council, wielding the primary legislative power, is elected by all citizens who are at least 16 years of age, and every citizen over age 26 is eligible to run for office. The distribution of seats in the National Council is based on a system of proportional representation. The members of the Federal Council represent the states. The assemblies, or diets, of the states elect the members by a proportional system based on the population of the state.
The legislative process originates in the National Council. Each bill—except for the budget, which is the sole prerogative of the National Council—must be approved by the Federal Council. The National Council, however, can override a Federal Council veto by a simple majority vote. Local government
Each of the nine states is administered by a government headed by a governor (Landeshauptmann); the governor is elected by the legislative diet, which in turn is elected by general ballot. The local municipalities each elect a mayor and a city council. Vienna is a unique case: as it is both a municipality and a state, its mayor functions as the governor. Justice
The administration of justice is independent of Austrian legislative and administrative authorities. Judges are not subject to any government influence: they are appointed by the cabinet upon nomination by judicial panels and can be neither dismissed nor transferred without the panels’ agreement.
Austria has three high courts: one sitting as the highest body of appeal in civil and criminal matters; a top administrative court to which citizens aggrieved by administrative decisions can appeal; and a constitutional court that decides on all constitutional matters, civil rights, and election disputes. Political process