Politics of Austria - Political Conditions

Political Conditions

Since World War II, Austria has enjoyed political stability. A Socialist elder statesman, Dr. Karl Renner, organized an Austrian administration in the aftermath of the war, and general elections were held in November 1945. In that election, the conservative People's Party (ÖVP) obtained 50% of the vote (85 seats) in the National Council, the Socialists won 45% (76 seats), and the communists won 5% (4 seats). The ensuing three-party government ruled until 1947, when the communists left the government and the ÖVP led a governing coalition with the socialists that governed until 1966. In that year, the ÖVP won an absolute majority and ruled alone for the next four years. The tables turned in 1970, when the SPÖ became the strongest party for the first time, winning an absolute majority under its charismatic leader Bruno Kreisky in 1971. Between 1971 and 1999, the SPÖ ruled the country either alone or in conjunction with the ÖVP, except from 1983–86, when it governed in coalition with the Freedom Party, until the coalition broke when the right-wing politician Jörg Haider became the leader of the Freedom Party.

After the election of 1999, despite emerging only in third place after the elections, the ÖVP formed a coalition with the right wing-populist Freedom Party (FPÖ) in early 2000. The SPÖ, which was the strongest party in the 1999 elections, and the Greens now form the opposition. As a result of the inclusion of the FPÖ on the government, the EU imposed symbolic sanctions on Austria, which were revoked six months later. The USA and Israel, as well as various other countries, also reduced contacts with the Austrian Government. The ÖVP was re-elected, this time with a plurality of votes, in the 2002 elections, and formed another coalition government with the FPÖ, this time largely ignored by other countries.

After major disputes inside the FPÖ between Haider and vice-chancellor Susanne Riess-Passer (the so-called Knittelfeld Putsch), the ÖVP broke the coalition in 2002 and called for re-elections. Riess-Passer left the FPÖ, and the former Minister of Social Services, Herbert Haupt, was appointed as new leader. In a brilliant marketing move, Chancellor Wolfgang Schüssel convinced the then very popular Minister of Finance Karl-Heinz Grasser to change from the FPÖ to the ÖVP.

Not only was the FPÖ publicly blamed for breaking the coalition and had lost Minister Grasser to the ÖVP, their style of government and broken promises also left many of their former voter disillusioned. In the elections, which were held on 24 November 2002, they suffered the biggest loss of votes in Austria's history, going down from 27% to only 10%. Most of these losses went to the ÖVP, which went up from 26% to 42%, the highest value for decades. Both Greens and Social Democrats gained votes, but not enough to form a coalition with only 85 of 183 seats.

Against public opinion, which was in favour of an ÖVP-SPÖ coalition government, Chancellor Schüssel renewed the coalition between the ÖVP and FPÖ.

Despite being exposed to fierce criticism from the opposition parties for failed or highly unfavorable privatization deals, the highest tax rates and unemployment figures since 1945, a questionable fighter jet purchase and repeated accusations that Finance Minister Grasser may have evaded taxes, the government seems to be the most stable in decades as both parties are afraid of losing votes. Recent law changes concerning the police, the national television and radio company, the federal railways and the social security system have led to an increase of the ÖVP's and FPÖ's influence in these bodies.

The Social Democratic Party of Austria emerged as strongest party in the 2006 elections forming a government with the Austrian People's Party, SPÖ party leader Alfred Gusenbauer becoming the new Chancellor.

A snap election in 2008 saw both government parties losing votes, however the coalition between SPÖ and ÖVP was renewed, with Werner Faymann, the new leader of the SPÖ, following Alfred Gusenbauer as Chancellor.