Austrian, adj., n.
/aw"stree euh/, n.
a republic in central Europe. 8,054,078; 32,381 sq. mi. (83,865 sq. km). Cap.: Vienna. German, Österreich.

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Introduction Austria
Background: Once the center of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law of that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. This neutrality, once ingrained as part of the Austrian cultural identity, has been called into question since the Soviet collapse of 1991 and Austria's entry into the European Union in 1995. A prosperous country, Austria entered the European Monetary Union in 1999. Geography Austria -
Location: Central Europe, north of Italy and Slovenia
Geographic coordinates: 47 20 N, 13 20 E
Map references: Europe
Area: total: 83,858 sq km water: 1,120 sq km land: 82,738 sq km
Area - comparative: slightly smaller than Maine
Land boundaries: total: 2,562 km border countries: Czech Republic 362 km, Germany 784 km, Hungary 366 km, Italy 430 km, Liechtenstein 35 km, Slovakia 91 km, Slovenia 330 km, Switzerland 164 km
Coastline: 0 km (landlocked)
Maritime claims: none (landlocked)
Climate: temperate; continental, cloudy; cold winters with frequent rain in lowlands and snow in mountains; cool summers with occasional showers
Terrain: in the west and south mostly mountains (Alps); along the eastern and northern margins mostly flat or gently sloping
Elevation extremes: lowest point: Neusiedler See 115 m highest point: Grossglockner 3,798 m
Natural resources: iron ore, oil, timber, magnesite, lead, coal, lignite, copper, hydropower
Land use: arable land: 16.89% permanent crops: 0.99% other: 82.12% (1998 est.)
Irrigated land: 457 sq km (2000 est.)
Natural hazards: landslides; avalanches; earthquakes Environment - current issues: some forest degradation caused by air and soil pollution; soil pollution results from the use of agricultural chemicals; air pollution results from emissions by coal- and oil-fired power stations and industrial plants and from trucks transiting Austria between northern and southern Europe Environment - international party to: Air Pollution, Air
agreements: Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution- Sulphur 94, Air Pollution-Volatile Organic Compounds, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Antarctic-Environmental Protocol, Climate Change-Kyoto Protocol
Geography - note: landlocked; strategic location at the crossroads of central Europe with many easily traversable Alpine passes and valleys; major river is the Danube; population is concentrated on eastern lowlands because of steep slopes, poor soils, and low temperatures elsewhere People Austria
Population: 8,169,929 (July 2002 est.)
Age structure: 0-14 years: 16.4% (male 686,205; female 652,840) 15-64 years: 68.2% (male 2,814,866; female 2,756,777) 65 years and over: 15.4% (male 484,313; female 774,928) (2002 est.)
Population growth rate: 0.23% (2002 est.)
Birth rate: 9.58 births/1,000 population (2002 est.)
Death rate: 9.73 deaths/1,000 population (2002 est.)
Net migration rate: 2.45 migrant(s)/1,000 population (2002 est.)
Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.62 male(s)/ female total population: 0.95 male(s)/ female (2002 est.)
Infant mortality rate: 4.39 deaths/1,000 live births (2002 est.) Life expectancy at birth: total population: 78 years female: 81.31 years (2002 est.) male: 74.85 years
Total fertility rate: 1.4 children born/woman (2002 est.) HIV/AIDS - adult prevalence rate: 0.1% (2001 est.) HIV/AIDS - people living with HIV/ 843 (2001 est.)
HIV/AIDS - deaths: 8 (2001 est.)
Nationality: noun: Austrian(s) adjective: Austrian
Ethnic groups: German 88%, non-nationals 9.3% (includes Croatians, Slovenes, Hungarians, Czechs, Slovaks, Roma), naturalized 2% (includes those who have lived in Austria at least three generations)
Religions: Roman Catholic 78%, Protestant 5%, Muslim and other 17%
Languages: German
Literacy: definition: age 15 and over can read and write total population: 98% male: NA% female: NA% Government Austria
Country name: conventional long form: Republic of Austria conventional short form: Austria local short form: Oesterreich local long form: Republik Oesterreich
Government type: federal republic
Capital: Vienna Administrative divisions: 9 states (Bundeslaender, singular - Bundesland); Burgenland, Kaernten, Niederoesterreich, Oberoesterreich, Salzburg, Steiermark, Tirol, Vorarlberg, Wien
Independence: 1156 (from Bavaria)
National holiday: National Day, 26 October (1955); note - commemorates the State Treaty restoring national sovereignty and the end of occupation and the passage of the law on permanent neutrality
Constitution: 1920; revised 1929 (reinstated 1 May 1945)
Legal system: civil law system with Roman law origin; judicial review of legislative acts by the Constitutional Court; separate administrative and civil/penal supreme courts; accepts compulsory ICJ jurisdiction
Suffrage: 18 years of age; universal; compulsory for presidential elections
Executive branch: chief of state: President Thomas KLESTIL (since 8 July 1992) head of government: Chancellor Wolfgang SCHUESSEL (OeVP)(since 4 February 2000); Vice Chancellor Susanne RIESS-PASSER (FPOe) (since 4 February 2000) cabinet: Council of Ministers chosen by the president on the advice of the chancellor elections: president elected by direct popular vote for a six-year term; presidential election last held 19 April 1998 (next to be held in the spring of 2004); chancellor traditionally chosen by the president from the plurality party in the National Council; in the case of the current coalition, the chancellor was chosen from another party after the plurality party failed to form a government; vice chancellor chosen by the president on the advice of the chancellor note: government coalition - OeVP and FPOe election results: Thomas KLESTIL reelected president; percent of vote - Thomas KLESTIL 63%, Gertraud KNOLL 14%, Heide SCHMIDT 11%, Richard LUGNER 10%, Karl NOWAK 2%
Legislative branch: bicameral Federal Assembly or Bundesversammlung consists of Federal Council or Bundesrat (64 members; members represent each of the states on the basis of population, but with each state having at least three representatives; members serve a four- or six-year term) and the National Council or Nationalrat (183 seats; members elected by direct popular vote to serve four-year terms) election results: National Council - percent of vote by party - SPOe 33.2%, OeVP 26.9%, FPOe 26.9%, Greens 7.4%; seats by party - SPOe 65, OeVP 52, FPOe 52, Greens 14 elections: National Council - last held 3 October 1999 (next to be held in the fall of 2003)
Judicial branch: Supreme Judicial Court or Oberster Gerichtshof; Administrative Court or Verwaltungsgerichtshof; Constitutional Court or Verfassungsgerichtshof Political parties and leaders: Austrian People's Party or OeVP [Wolfgang SCHUESSEL]; Freedom Party of Austria or FPOe [Susanne RIESS- PASSER]; Social Democratic Party of Austria or SPOe [Alfred GUSENBAUER]; The Greens Alternative or GA [Alexander VAN DER BELLEN] Political pressure groups and Austrian Trade Union Federation
leaders: (primarily Socialist) or OeGB; Federal Economic Chamber; OeVP- oriented League of Austrian Industrialists or VOeI; Roman Catholic Church, including its chief lay organization, Catholic Action; three composite leagues of the Austrian People's Party or OeVP representing business, labor, and farmers International organization AfDB, AsDB, Australia Group, BIS,
participation: BSEC (observer), CCC, CE, CEI, CERN, EAPC, EBRD, ECE, EIB, EMU, ESA, EU, FAO, G- 9, IADB, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ISO, ITU, MINURSO, NAM (guest), NEA, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, PFP, UN, UNCTAD, UNDOF, UNESCO, UNFICYP, UNHCR, UNIDO, UNIKOM, UNITAR, UNMEE, UNMIBH, UNMIK, UNMOGIP, UNMOT, UNOMIG, UNTSO, UPU, WCL, WEU (observer), WFTU, WHO, WIPO, WMO, WToO, WTrO, ZC Diplomatic representation in the US: chief of mission: Ambassador Peter MOSER chancery: 3524 International Court NW, Washington, DC 20008-3035 consulate(s) general: Chicago, Los Angeles, and New York FAX: [1] (202) 895-6750 telephone: [1] (202) 895-6700 Diplomatic representation from the chief of mission: Ambassador William
US: Lee LYONS BROWN, Jr. embassy: Boltzmanngasse 16, A-1091, Vienna mailing address: use embassy street address telephone: [43] (1) 31339-0 FAX: [43] (1) 3100682
Flag description: three equal horizontal bands of red (top), white, and red Economy Austria -
Economy - overview: Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to EU aspirant economies. Slowing growth in Germany and elsewhere in the world slowed the economy to only 1.2% growth in 2001; the economy is expected to do little better in 2002. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy, continue to deregulate the service sector, and lower its tax burden.
GDP: purchasing power parity - $220 billion (2001 est.)
GDP - real growth rate: 1.2% (2001 est.)
GDP - per capita: purchasing power parity - $27,000 (2001 est.) GDP - composition by sector: agriculture: 2% industry: 29% services: 69% (2001) Population below poverty line: NA% Household income or consumption by lowest 10%: 4.4%
percentage share: highest 10%: 19.3% (1992) Distribution of family income - Gini 23.1 (1987)
index: Inflation rate (consumer prices): 2.6% (2001)
Labor force: 4.3 million (2001) Labor force - by occupation: services 67%, industry and crafts 29%, agriculture and forestry 4% (2001 est.)
Unemployment rate: 4.8% (2001)
Budget: revenues: $53 billion expenditures: $54 billion, including capital expenditures of $NA (2001 est.)
Industries: construction, machinery, vehicles and parts, food, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism Industrial production growth rate: 3.8% (2001 est.) Electricity - production: 60.285 billion kWh (2000) Electricity - production by source: fossil fuel: 28.46% hydro: 68.64% other: 2.9% (2000) nuclear: 0% Electricity - consumption: 54.764 billion kWh (2000)
Electricity - exports: 15.11 billion kWh (2000)
Electricity - imports: 13.809 billion kWh (2000)
Agriculture - products: grains, potatoes, sugar beets, wine, fruit; dairy products, cattle, pigs, poultry; lumber
Exports: $70 billion (f.o.b., 2001) (2000 est.)
Exports - commodities: machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel; textiles, foodstuffs
Exports - partners: EU 63% (Germany 35%, Italy 9%, France 5%), Switzerland 5%, US 5%, Hungary 4% (2000)
Imports: $73 billion (c.i.f., 2001)
Imports - commodities: machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products; foodstuffs
Imports - partners: EU 68% (Germany 42%, Italy 7%, France 5%), US 6%, Switzerland 3%, Hungary 2% (2000)
Debt - external: $12.1 billion (2001 est.)
Economic aid - donor: ODA, $410 million (2000)
Currency: euro (EUR); Austrian schilling (ATS) note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by the financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries
Currency code: EUR; ATS
Exchange rates: euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); Austrian schillings per US dollar - 11.86 (January 1999), 12.91 (1999), 12.379 (1998), 12.204 (1997)
Fiscal year: calendar year Communications Austria Telephones - main lines in use: 4 million (consisting of 3,600,000 analog main lines plus 400,000 Integrated Services Digital Network connections); in addition, there are 100,000 Asymmetric Digital Services lines (2001) Telephones - mobile cellular: 6 million (2001)
Telephone system: general assessment: highly developed and efficient domestic: there are 48 main lines for every 100 persons; the fiber optic net is very extensive; all telephone applications and Internet services are available international: satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Eutelsat; in addition, there are about 600 VSAT (very small aperture terminals) (2002) Radio broadcast stations: AM 2, FM 160 (plus several hundred repeaters), shortwave 1 (2001)
Radios: 6.08 million (1997) Television broadcast stations: 45 (plus more than 1,000 repeaters) (2001)
Televisions: 4.25 million (1997)
Internet country code: .at Internet Service Providers (ISPs): 37 (2000)
Internet users: 3 million (2000) Transportation Austria
Railways: total: 6,095.2 km (3,643.3 km electrified) standard gauge: 5,564.2 km 1.435- m gauge (3,521.2 km electrified) narrow gauge: 33.9 km 1.000-m gauge (28.1 km electrified); 497.1 km 0.760-m gauge (94 km electrified) (2001 est.)
Highways: total: 133,361 km paved: 133,361 km (including 1,613 km of expressways) unpaved: 0 km (1998)
Waterways: 358 km (1999)
Pipelines: crude oil 777 km; natural gas 840 km (1999)
Ports and harbors: Linz, Vienna, Enns, Krems
Merchant marine: total: 10 ships (1,000 GRT or over) totaling 46,563 GRT/59,278 DWT ships by type: bulk 1, cargo 6, combination bulk 1, container 2 (2002 est.)
Airports: 55 (2001) Airports - with paved runways: total: 24 over 3,047 m: 1 2,438 to 3,047 m: 5 914 to 1,523 m: 3 under 914 m: 14 (2001) 1,524 to 2,437 m: 1 Airports - with unpaved runways: total: 31 1,524 to 2,437 m: 1 914 to 1,523 m: 3 under 914 m: 27 (2001)
Heliports: 1 (2001) Military Austria
Military branches: Land Forces (KdoLdSK), Air Forces (KdoLuSK) Military manpower - military age: 19 years of age (2002 est.) Military manpower - availability: males age 15-49: 2,092,623 (2002 est.) Military manpower - fit for military males age 15-49: 1,728,191 (2002
service: est.) Military manpower - reaching military males: 50,580 (2002 est.)
age annually: Military expenditures - dollar $1,497.1 million (FY01/02)
figure: Military expenditures - percent of 0.8% (FY01/02)
GDP: Transnational Issues Austria Disputes - international: minor disputes with Czech Republic and Slovenia continue over nuclear power plants and post-World War II treatment of German-speaking minorities
Illicit drugs: transshipment point for Southwest Asian heroin and South American cocaine destined for Western Europe

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officially Republic of Austria

Country, south-central Europe.

Area: 32,378 sq mi (83,859 sq km). Population (2002 est.): 8,077,000. Capital: Vienna. Language: German (official). Religion: Roman Catholicism (three-fourths). Currency: euro. Austria can be divided into three regions. The Alpine region in the west covers about two-thirds of the country and includes its highest point, the Grossglockner. The Bohemian Forest is a highland region that extends north into the Czech Republic. The lowland region, including the Vienna Basin, lies in the east; it supports mainly agricultural activities. The Danube River and its tributaries drain nearly the entire country. Austria has a developed mixed free-market and government-operated economy based on manufacture and commerce; tourism is also important. It is a republic with two legislative houses. Austria's chief of state is the president and its head of government is the chancellor. Its greatest cultural contribution has been in music (see Joseph Haydn; Wolfgang Amadeus Mozart; Franz Schubert; Alban Berg; Anton Webern). Major cultural figures in other fields include Oskar Kokoschka in art, Sigmund Freud in psychoanalysis, and Ludwig Wittgenstein in philosophy. Settlement in Austria goes back some 3,000 years, when Illyrians were probably the main inhabitants. The Celts invaded с 400 BC and established the kingdom of Noricum. The Romans arrived after 200 BC and established the provinces of Raetia, Noricum, and Pannonia; prosperity followed and the population became Romanized. With the fall of Rome in the 5th century AD, many tribes invaded, including the Slavs; they were eventually subdued by Charlemagne, and the area became ethnically Germanic. The distinct political entity that would become Austria emerged in 976 with Leopold I of Babenberg as margrave. In 1278 Rudolf IV of Habsburg (later Rudolf I of the Holy Roman Empire) conquered the area; Habsburg rule lasted until 1918. While in power, the Habsburgs created a kingdom centred on Austria, Bohemia, and Hungary. The Napoleonic Wars brought about the end of the Holy Roman Empire (1806) and the creation of the Austrian Empire. Count von Metternich tried to assure Austrian supremacy among Germanic states, but war with Prussia led Austria to divide the empire into the Dual Monarchy of Austria-Hungary. Nationalist sentiment plagued the kingdom, and the assassination of Francis Ferdinand by a Serbian nationalist in 1914 triggered World War I, which destroyed the Austro-Hungarian Empire. In the postwar carving up of Austria-Hungary, Austria became an independent republic. It was annexed by Nazi Germany in 1938 (see Anschluss) and joined the Axis powers in World War II. The republic was restored in 1955 after 10 years of Allied occupation. Austria became a full member of the European Union (EU) in 1995. After a half-century of military neutrality, Austria was one of the few members of the EU that was not a member of NATO at the outset of the 21st century.
(as used in expressions)
Republic of Austria
Austria Hungary

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▪ 2009

83,871 sq km (32,383 sq mi)
(2008 est.): 8,338,000
Chief of state:
President Heinz Fischer
Head of government:
Chancellors Alfred Gusenbauer and, from December 2, Werner Faymann

      In the first half of 2008, Austrian politics were characterized by deep distrust between the two governing coalition partners, the Social Democratic Party (SPÖ) and the centre-right Austrian People's Party (ÖVP), which resulted in the collapse of the federal government in July. Relations between the SPÖ and the ÖVP had been strained from the government's inception in January 2007, largely as a result of the ÖVP's refusal to acknowledge its role as the “junior” partner in the coalition. The government fell when the two coalition partners failed to agree on health care reforms and on EU policy, with the SPÖ insisting that all future EU treaties be subject to a referendum. An early election was held on September 28, with the SPÖ emerging as the largest party (29.3% of the vote) and the ÖVP (26%) as the second largest. The Freedom Party (FPÖ) and the Alliance for the Future of Austria (BZÖ) performed well, winning 17.5% and 10.7% of the vote, respectively, while the Green party received only 10.4% of the vote. On October 11 the BZÖ's charismatic leader, Jörg Haider (Haider, Jorg ), died in a car crash; the party's future without Haider remained uncertain.

      Following nearly two months of negotiations, on November 23 a “grand” coalition was revived between the SPÖ and the ÖVP. The distribution of ministries between the two parties remained largely unchanged, but the new grand coalition was likely to be characterized by more cooperation than the previous one. Both parties made significant concessions in the coalition negotiations, and the new chancellor, Werner Faymann of the SPÖ, and vice-chancellor, Josef Proll of the ÖVP, had a good working relationship. Several new ministers had previously represented social partners, which indicated a return to the traditional consensual approach that dominated Austrian politics until 2000.

      Despite the political turmoil in 2008, the old and new coalition governments both reached agreement on a number of reforms. On March 5 the Ministry for Transport, Innovation and Technology earmarked €10.7 billion (€1 = about $1.50) for railway improvements and €8.1 billion for motorway expansion and renovation by 2013. The largest infrastructure project was the creation of a tunnel under the Brenner Pass, linking Italy with southern Tyrol. The completion of this tunnel would help to shift some of the transport between Germany and Italy from roads to railways. This would reduce Austria's carbon dioxide emissions, a significant concern since Austria was on track to miss its Kyoto Protocol targets. The ÖVP-SPÖ coalition also developed a package of measures aimed at boosting consumer purchasing power in the face of high inflation. This package reduced price hikes for apartment rents (many of which were still regulated), as well as for some services such as railway tickets. In October the new coalition agreed on a set of measures to shore up liquidity in the banking sector, offering up to €100 billion in aid to commercial banks, of which €85 billion would be in deposit guarantees and the remaining €15 billion in the form of new equity to boost banks' capital levels. On November 6 the SPÖ and the ÖVP agreed on a new medium-term fiscal framework that aimed to stimulate the economy while keeping the general government budget deficit below 3% of GDP through 2013. The new government also agreed on the main points of income tax reform, to be implemented in 2009 instead of 2010 as originally agreed by the previous government.

      The economy slowed significantly in 2008 as household spending and investment demand declined in the face of high inflation and tight credit-lending conditions. After years of robust business investment in Austria's booming manufacturing sector, there was a slowdown in manufacturing in 2008. Demand for Austrian exports slowed as well but nevertheless remained strong, particularly from neighbouring Germany. Employment growth increased in 2008, while unemployment fell.

Megan Greene

▪ 2008

83,871 sq km (32,383 sq mi)
(2007 est.): 8,319,000
Chief of state:
President Heinz Fischer
Head of government:
Chancellors Wolfgang Schüssel and, from January 11, Alfred Gusenbauer

      In January 2007 a majority “grand coalition” government comprising the Social Democratic Party (SPÖ) and the centre-right Austrian People's Party (ÖVP) entered office. This brought an end to more than three months of negotiations between the parties after the inconclusive result of the general election in October 2006, when an unlikely victory for the SPÖ over the ÖVP had left neither party able to form a stable majority with its preferred political allies.

      The coalition's first year in office was marked by bitter fighting as both parties took time to adapt to political realities. Naturally eager to stamp its authority on the coalition after seven years in opposition, the SPÖ leadership was nevertheless hampered by its decision during the postelection talks to concede most of the prestigious cabinet posts (including finance, foreign affairs, and economy) to the ÖVP—a move that drew strong criticism of the new SPÖ chancellor, Alfred Gusenbauer, from party supporters. With the ÖVP reeling from its poor performance at the election and disinclined to acknowledge the SPÖ's more “senior” role in the coalition, relations between the parties were far from cordial. In July, Austrian Pres. Heinz Fischer publicly admonished the behaviour of both parties, calling on them to show more mutual respect.

      Despite these tensions, the coalition reached agreement on a number of important reforms, including the introduction of a national minimum monthly wage (from 2008), increased investment on education and transport infrastructure, and the partial opening of the labour market to workers from the 10 EU member states that joined the EU in 2004 (in response to evidence of a shortage of skilled workers in certain sectors of the economy). SPÖ supporters were far from pleased, however, with the party's decision to backtrack on two key preelection pledges: namely, to abolish university tuition fees (which had been originally signed by an ÖVP-led government in 2003) and to cancel a controversial €2 billion (about $2.77 billion) contract for the purchase of 18 Eurofighter military jets. After months of debate and a truncated parliamentary investigation into allegations of corruption over the Eurofighter deal, the SPÖ defense minister reached a revised agreement in June to purchase 15 military aircraft at a total cost of €1.6 billion (about $2.2 billion). The ÖVP and the SPÖ each laid claim to having achieved “the best possible deal for Austria,” but neither side emerged from the long-running (and at times rather murky) affair with much credit.

      In early 2007 the government clashed with the European Commission over the latter's rejection of a quota system for medical students at Austrian universities. The system had been introduced in 2005 in an effort to stem a surge in applications from German students, many of whom had been unable to obtain a place in their national universities because of stricter admittance rules than those in Austria. The government argued that a quota system was necessary to safeguard the future of the university sector and prevent the crowding out of domestic applicants, but the Commission ruled that it was discriminatory and should be abolished.

      Pope Benedict XVI made a three-day trip to Austria in September. During his stay the pontiff strongly urged Roman Catholics to return to traditional values. Crowds were smaller than expected—only partly, it was said, because of miserable weather conditions.

      The economy grew at its fastest rate in eight years in 2007, driven by strong demand for Austrian exports (particularly from Germany) and robust business investment in the booming manufacturing and construction sectors. Household spending was relatively subdued. In June, Voestalpine, a domestic steel group, bought specialist steelmaker Böhler-Uddeholm, forming the country's second largest industrial company.

Neil Prothero

▪ 2007

83,871 sq km (32,383 sq mi)
(2006 est.): 8,263,000
Chief of state:
President Heinz Fischer
Head of government:
Chancellor Wolfgang Schüssel

      During the first half of 2006, Austria's government assumed the rotating six-month EU presidency. The list of objectives included measures aimed at reviving the derailed EU constitution and the euro zone's flagging economy while also attempting to restore the trust and confidence of citizens in the EU. In the event, the Austrian presidency was largely overshadowed by global events. Although little substantial progress was reached regarding the future direction of the constitution or the prospects for EU enlargement, the Austrian presidency could claim some success in having agreed on a new EU budget and a new services directive, as well as having made progress toward a common European energy policy.

      In February the attention of the world's media was briefly focused on Austria after a Vienna court sentenced British historian David Irving to three years in jail for speeches that he had made in 1989 in which he denied the occurrence of the Holocaust. Austria had some of the toughest Holocaust-denial laws in Europe, but the verdict was still harsher than many legal experts had predicted. The global media descended on Austria again in August following reports that 18-year-old Natascha Kampusch had escaped from a house in a quiet suburb of Vienna after having been held captive in an underground cell for eight years. The disappearance of Kampusch in 1998, at the age of 10, had shocked Austria and triggered a massive police hunt. The kidnapper, 44-year-old communications technician Wolfgang Priklopil, committed suicide immediately following Kampusch's escape, and his motives for the kidnapping remained unclear.

 On October 1 the country's parliamentary elections were held. From early in the year, the main opposition Social Democratic Party (SPÖ) appeared on course to mount a successful challenge to the centre-right Austrian People's Party (ÖVP), the senior partner in the outgoing ruling coalition. The SPÖ suffered a setback in March following a scandal that involved Austria's fourth largest bank, Bawag, which was owned by the country's trade union federation. Bawag came close to financial collapse when reports emerged that the bank's involvement in speculative transactions in the U.S. and the Caribbean in the late 1990s had resulted in financial losses of €1.3 billion (about $1.55 billion). Only a last-ditch bail-out package by the government averted Bawag's impending insolvency. The credibility of the SPÖ, meanwhile, was badly damaged. The public's close association of the party with the trade union movement (whose president was forced to resign over the scandal) led to a slump in support. When the ballots were finally counted, however, the SPÖ had narrowly beaten the ÖVP to take first place. Pres. Heinz Fischer asked SPÖ leader Alfred Gusenbauer to form a new government. At year's end the most likely outcome of ongoing negotiations was the formation of a “grand coalition” between the ÖVP and SPÖ. One of the reasons given for the ÖVP's poor performance was the reemergence as a political force of the far-right Freedom Party (FPÖ), which ran a strongly xenophobic and anti-immigration campaign.

      The Austrian economy grew at its fastest rate in six years in 2006, boosted by strong export demand (particularly in neighbouring Germany) and rising investment. Household spending was subdued, despite earlier tax cuts. In May plans for a merger between Austria's largest energy supplier and an oil and gas group collapsed amid fears that the utility's extensive hydropower resources would be acquired by foreign investors. In the same month, the government extended to 2009 the restrictions on labour-market access for citizens from the 10 new EU member states.

Neil Prothero

▪ 2006

83,871 sq km (32,383 sq mi)
(2005 est.): 8,168,000
Chief of state:
President Heinz Fischer
Head of government:
Chancellor Wolfgang Schüssel

      Austria officially designated 2005 a jubilee year as it celebrated 60 years since the founding of the Second Republic after the end of World War II, 50 years since the country regained full independence following the signing of the State Treaty, and 10 years since it joined the EU. Chancellor Wolfgang Schüssel, the leader of the senior party in the ruling coalition, the centre-right Austrian People's Party (ÖVP), might have hoped that these celebrations would help to boost his standing (and that of the ÖVP) among the electorate prior to the general election in 2006.

      Attention was focused instead on the ÖVP's junior coalition partner, the far-right Freedom Party (FPÖ). In April a bitter dispute between opposing factions in the party came to a head when Jörg Haider—the populist former party leader and governor of Carinthia—together with most of the FPÖ leadership and parliamentarians broke away to form a new party, the Alliance for the Future of Austria (BZÖ). This unexpected development followed a period of acrimonious fighting within the FPÖ; tensions flared between the party leadership, which mostly comprised representatives of its moderate wing, and prominent hard-line members of the FPÖ over the future course of the party in the wake of a stream of poor election results. The BZÖ was formally established on April 17 and subsequently replaced the FPÖ as the junior partner in government; the new coalition retained a small majority in the Nationalrat (lower house of parliament). To the surprise of many Austrians and to the frustration of opposition parties, which had demanded an early general election amid claims that the ÖVP-BZÖ coalition no longer had the support of the electorate, the new right-of-centre alliance held together. Despite a disappointing performance by both parties in important state elections held in three of Austria's nine states in October, the government seemed likely to remain in office until the end of the legislative term in 2006.

      Having implemented a range of structural-reform measures in recent years, including a major tax reform (cuts in business and income tax came into effect at the start of 2005) and a significant restructuring of the state pension system, the government turned its policy focus to the problem of rising unemployment. In May a range of job-creation measures were unveiled, and in August the government presented a €1.2 billion (about $1.5 billion) Regional Employment and Growth Campaign. Meanwhile, a controversial new asylum bill was approved, and the length of compulsory military service was reduced (from eight to six months) as part of a wider military reform. The more expansive fiscal policy adopted by the government contributed to a deterioration in the budget deficit, but overall the economy continued to grow at a slightly faster rate than the average for the euro area.

 In May the Austrian parliament ratified the EU constitutional treaty, although the entire ratification process was then thrown into disarray when the constitution was rejected by French and Dutch voters. The start of accession negotiations between Turkey and the EU in October prompted fierce debate in Austria; there was considerable opposition to Turkey's future EU membership. Meanwhile, surveys showed that support for the EU in general in Austria was among the lowest of all member states—a situation that was not improved following a ruling by the European Court of Justice in July that forced Austria to revise its admission rules for foreign students. In August torrential rain caused flooding in western Austria, with areas of Tirol particularly badly hit. Nine German tourists died in September in the Tyrolean ski resort of Sölden after a helicopter accidentally dropped a concrete block onto a cable car in which they were traveling.

      In November Austria arrested British historian David Irving for speeches he made in 1989 that allegedly violated an Austrian law against Holocaust denial.

Neil Prothero

▪ 2005

83,871 sq km (32,383 sq mi)
(2004 est.): 8,105,000
Chief of state:
Presidents Thomas Klestil, Andreas Khol (acting) from July 6 to 8, and, from July 8, Heinz Fischer
Head of government:
Chancellor Wolfgang Schüssel

      The Austrian electorate had a busy time at the ballot box in 2004, with important state elections taking place in March, a new president elected in April, and elections to the European Parliament in June. The two parties in the ruling coalition—the centre-right Austrian People's Party (ÖVP) and its junior partner, the populist far-right Freedom Party (FPÖ)—experienced contrasting fortunes, but on the whole the government ended the year in a stronger position than many had thought possible 12 months earlier.

      Relations between the coalition partners improved. The degree of turbulence within the FPÖ declined, which reflected the presence of a larger number of respected figures who were willing to accept the responsibility of high office. The appointment of Hubert Gorbach, a notable representative of the FPÖ's liberal wing, as vice-chancellor in late 2003 brought stability to the coalition, as did the appointment of Ursula Haubner, a popular and respected junior minister, as the FPÖ's new leader in June. Haubner's brother was Jörg Haider, the xenophobic former party leader (who continued to apply his opportunistic style in political affairs at the federal level), but she was a moderate and showed signs of developing a constructive relationship with the ÖVP (and particularly the chancellor, Wolfgang Schüssel).

      The FPÖ nevertheless struggled at the polls in 2004. Support for the party declined sharply in the Salzburg state election in March and at the European Parliament elections. The FPÖ did fare better in Carinthia, where Haider was unexpectedly reelected governor, although this was attributed to his highly personalized campaign, in which the FPÖ's name hardly featured. The main opposition Social Democratic Party (SPÖ) was victorious in the Salzburg election and in the presidential contest, where Heinz Fischer narrowly topped the ÖVP candidate, Foreign Minister Benita Ferrero-Waldner. Fischer's inauguration on July 8 was overshadowed by the death two days earlier of his predecessor, Thomas Klestil. (See Obituaries (Klestil, Thomas ).) In June Austria gave its full support to the new EU constitutional treaty, having played a key role in defending the position of smaller member states during the lengthy negotiation process. Ferrero-Waldner began work in November as Austria's new EU commissioner with responsibility for external relations.

      During 2004 the government continued to push through elements of a comprehensive structural-reform program for the economy and reached agreement on major tax cuts (in 2005), a further restructuring of the state pension system, and efficiency savings within the health care system. Opposition, particularly from trade unions, to the scale of some of the reforms was anticipated by the government, although the extent of protests was considerably more muted than had been the case in 2003. That year opposition to a major pension reform resulted in the largest public- and private-sector strikes in Austria for more than 50 years.

      The global economic recovery in 2004 led to a gradual strengthening of the Austrian economy following three years of below-trend growth. Household spending remained relatively subdued, but capital investment was boosted by a government stimulus package and plans to upgrade the country's transport infrastructure, particularly to Austria's eastern neighbours following the enlargement of the EU in May. Rising demand in many of Austria's key trading-partner countries (including Germany) resulted in a modest pickup in exports, although an appreciating euro and strengthening imports meant that the foreign sector as a whole contributed little to overall growth. Protests continued throughout the year in Tyrol against the increasing amount of heavy-goods traffic and pollution following the decision by the EU to ease trucking restrictions at the end of 2003.

Neil Prothero

▪ 2004

83,871 sq km (32,383 sq mi)
(2003 est.): 8,054,000
Chief of state:
President Thomas Klestil
Head of government:
Chancellor Wolfgang Schüssel

      Following the collapse in September 2002 of the coalition that comprised the centre-right Austrian People's Party (ÖVP) and the far-right populist Freedom Party (FPÖ), the opening months of 2003 saw the four main political parties in Austria involved in negotiations on the formation of a new government. The ÖVP was in the box seat, having emerged from the November 2002 general election as the largest party in Austria for the first time in 36 years, gaining 42% of the vote.

      The expectation was that the ÖVP would once again join forces with its nearest rival, the Social Democratic Party (SPÖ), to form a “grand coalition,” an arrangement that had cornered power in Austria for decades prior to the FPÖ's entering government in 2000. This development appeared to be the preferred outcome for the majority of Austrians, including the business community, which hoped that such a coalition would be able to build a more broad-based consensus (including the trade unions) in support of the program of structural reforms required in the Austrian economy. The talks eventually broke down, however, when the parties were unable to reach agreement on a range of issues.

      The ÖVP then turned its attention to the Greens, a party that was looking to enter government for the first time. Initially this alliance appeared an attractive proposition to both sides, but it soon became clear that significant differences of opinion again existed between the parties over proposed pension reforms and the costly purchase of a fleet of Eurofighter aircraft. Thus, the ÖVP leader and chancellor, Wolfgang Schüssel, looked instead to reviving the coalition with the FPÖ. Not surprisingly, large sections of the ÖVP were highly skeptical about the merits of working alongside the far-right party for a second time, given that the FPÖ had made heavy weather of reconciling its brand of protest politics to the responsibilities of high office in the previous legislative term, when the significant internal divisions within the party had often been exposed. Nevertheless, amid signs of increasing impatience among the electorate over the length of the postelection talks, as well as the desire to have a government in place before the onset of any military action in Iraq, the two parties reached agreement, and the new coalition was sworn in on February 28.

      The decision was greeted with widespread dissatisfaction across Austria, which was hardly tempered by the announcement of the government's program for the legislative term, which included proposals for a wide-ranging reform of the generous state pension scheme and the country's health care system. Tensions also quickly emerged between the coalition partners, owing largely to the destabilizing influence of the FPÖ's erstwhile leader Jörg Haider (still widely regarded as the dominant figure in the party). In May, Austria's largest public- and private-sector strikes in more than 50 years were held to protest the package of pension-reform measures, which envisaged a reduction in benefits by an average of 10–15%. The strikes provided Haider with a perfect opportunity to boost both his own profile and the flagging fortunes of the FPÖ. His headline-grabbing campaigns—often contrasting sharply with the government's positions—served to underscore the sharp divisions between moderates in the party and more extreme elements. In September the FPÖ performed disastrously at the polls in two provincial (state) elections, raising further doubts over the future of the ruling coalition.

      The sluggish performance of the Austrian economy in 2003 mirrored the situation in most European countries. Foreign demand remained weak, negating any stimulus from the export sector, while businesses continued to hold back on their investment plans, given the uncertain economic climate. Households recorded a modest increase in spending despite a rise in unemployment, but this could not prevent the economy from recording its third consecutive year of below-average growth.

Neil Prothero

▪ 2003

83,858 sq km (32,378 sq mi)
(2002 est.): 8,077,000
Chief of state:
President Thomas Klestil
Head of government:
Chancellor Wolfgang Schüssel

      The beginning of 2002 saw the second anniversary of the formation of Austria's controversial coalition government, comprising the centre-right People's Party (ÖVP) and the populist, sometimes xenophobic Freedom Party (FPÖ). This coincided with the beginning of a series of crises within the fractious FPÖ that broke out intermittently in the first half of the year as moderates in the cabinet clashed with more extreme elements led by the party's erstwhile leader Jörg Haider.

      In an attempt to boost his own profile and the party's flagging support, Haider launched a number of headline-grabbing campaigns, caring little whether these were at variance with his own government's positions. Playing on widespread fears about a Soviet-era nuclear power station in the Czech Republic only 50 km (30 mi) from the Austrian border, for example, he demanded that the government use every means at its disposal to pressure the Czechs into shutting down the plant. Most controversially, this included Haider's advocating the use of Austria's membership in the European Union to veto Czech attempts to join the organization. Relations with Prague deteriorated further when Haider again advocated the use of Austria's EU veto on Czech membership unless it repealed laws still on the books that allowed the expulsion of German-speakers after World War II.

      By midyear it was clearly only a matter of time before the FPÖ would fall apart. The final sign came from the heavens; in August persistent heavy rainfall caused the worst flooding in half a century. The cleanup and rebuilding costs took their toll on the public finances, forcing the government to abandon promised tax cuts. Refusing to accept this, Haider led an intraparty revolt, effectively deposing the FPÖ leader and vice-chancellor, Susanne Riess-Passer. Her resignation from both positions in turn led the ÖVP to declare the coalition arrangement with the FPÖ unworkable and call an early general election.

      In the voting on November 24, the Freedom Party saw its support plummet from 27% in the most recent general election (1999) to a mere 10%. Voters abandoned the party for a number of reasons. Austrians traditionally tended to punish any party that failed to see out its four-year term in office. More significant, though, was the party's poor record in government. Having swept to power in 1999 on a wave of popular discontent with the two largest parties, which had cornered power for decades, the FPÖ saw its failure to implement change, for ill or good, prompted supporters to desert in droves.

      The big winner in the election was the senior coalition partner, the ÖVP. By taking 42% of the vote, up from 27% in 1999, it leapfrogged its nearest rivals, the Social Democrats (SPÖ), to become the largest party for the first time in more than three decades. This gave its leader, Chancellor Wolfgang Schüssel, the choice of making a coalition with any one of the other three parties represented in the Federal Assembly—the FPÖ, SPÖ, or the environmentalist Greens. Talks on the formation of a new coalition continued into the final month of the year.

      As in the rest of Europe, and indeed much of the world, the Austrian economy faltered in 2002. The export sector stagnated as foreign demand dried up, consumers curtailed their spending, and businesses took a gloomy view of future prospects and slashed investments. The result was a sharp uptick in employment, though with 5.5% of the labour force out of work, Austria continued to enjoy one of the lowest levels of joblessness in Europe.

Dan O'Brien

▪ 2002

83,858 sq km (32,378 sq mi)
(2001 est.): 8,069,000
Chief of state:
President Thomas Klestil
Head of government:
Chancellor Wolfgang Schüssel

      Austria's right-of-centre coalition government, comprising the moderate People's Party (ÖVP) and the populist—and occasionally xenophobic—Freedom Party (FPÖ), completed its first full year in office in 2001. Allaying early fears that the inclusion of the FPÖ in government heralded a lurch to the reactionary right in Austria, the coalition's policies and actions remained on a moderate and largely uncontroversial course throughout the year. This was largely because the ÖVP continued to dominate the arrangement, remaining in almost complete control of the political and policy agenda, while the inexperienced FPÖ made an impact only occasionally.

      This inability to make its mark contributed to a significant loss of support for the FPÖ and led to calls from within the party for a return to opposition. More moderate elements successfully resisted this, helped by an understanding among members and supporters that withdrawal from the government would likely precipitate an election in which the party would lose considerable ground. To add to its woes during 2001, the FPÖ was bedeviled by unsightly public squabbles, often over trivial personal rivalries.

      Vienna was the only one of the nine federal provinces to go to the polls in 2001. As expected, the opposition Social Democrats (SPÖ) and the Green Party made gains at the expense of the FPÖ, while ÖVP support remained static. The result allowed the centre-left SPÖ to win outright control of the city's legislature and end its former coalition arrangement with the ÖVP.

      The most fundamental change undertaken by the federal government was its continued efforts to limit the role of Austria's powerful social partnership, which had traditionally given trade unions, employers, and other interest groups an important role in the formulation of economic and social policies. Since coming to power in 2000, the government had sought to wrest from the SPÖ the leverage it had on policy (even while in opposition) via its close links with the trade union movement and to remove those individuals not affiliated with either the ÖVP or the FPÖ from positions of power in public institutions. The trade unions fought a rearguard action, however, and this resulted in the souring of the industrial relations climate and in occasional street demonstrations—unusual occurrences in socially stable Austria.

      In terms of foreign relations, it was a mixed year. A government attempt to forge closer links with former communist countries attempting to join the European Union had little success, probably because those countries were sensitive to any appearance that Austria would take a leading role in the region. Meanwhile, the government moved closer to NATO. Although the country had been militarily neutral since 1955, both government parties had supported Austrian membership in NATO since the end of the Cold War in the early 1990s, arguing that neutrality no longer served Austria's security interests. Given public opposition, however, the government conceded that NATO membership would not be contemplated in the foreseeable future.

      In line with developments globally and in Europe, the rate of economic growth slowed throughout 2001. Despite this, unemployment remained below 5%—one of the lowest rates in the industrialized world. Inflation, though higher than in 2000, remained low and stable, easing back during the course of the year. The government's main economic policy goal going into 2001 was to cut public spending in order to balance the government budget by 2002. Although some progress was made in reducing the deficit level in 2001, the slowdown in the economy depressed tax revenues and pushed expenditure above expected levels.

Dan O'Brien

▪ 2001

83,858 sq km (32,378 sq mi)
(2000 est.): 8,091,000
Chief of state:
President Thomas Klestil
Head of government:
Chancellors Viktor Klima and, from February 4, Wolfgang Schüssel

      In its post-World War II history, Austria had rarely had such an eventful year as 2000. Following the inconclusive general election in October 1999, negotiations between the centre-left and centre-right coalition partners dragged on into early 2000. Contrary to expectations, the two parties, which had been in power since 1986, failed to renew their partnership.

      Talks finally broke down in late January, and the conservative Austrian People's Party (ÖVP) quickly agreed to enter into coalition with the populist right-wing Freedom Party (FPÖ). The participation in government of the FPÖ, and especially of party leader Jörg Haider, provoked an unexpectedly strong reaction at home and abroad. Domestically, the ÖVP's erstwhile partner, the Social Democratic Party of Austria (SPÖ), and others reacted angrily to the inclusion in government of the FPÖ, which had been considered too extremist to participate. Frequent outbursts by FPÖ members expressing anti-immigrant sentiments and lightly veiled admiration of Nazism gained the party notoriety in Europe and beyond.

      Widespread street demonstrations ensued. Although these protests were peaceful and dwindled within weeks, they heralded the beginnings of a more adversarial style of politics in Austria, with the new right-leaning coalition set against the centre-left SPÖ and the Green Party.

      International opprobrium was heaped upon the new government, and concerns for the civil and political liberties of some groups in Austrian society were voiced. A number of European governments seemed to fear that right-wing populists in their own countries would get a boost from the successes of the FPÖ. This possibility in part underlay the decision of Austria's 14 European Union (EU) partners to impose bilateral diplomatic sanctions. Although no action was taken by the EU itself, Austria found itself diplomatically isolated. Most Austrians, including many of those opposed to the new government, resented the sanctions; indeed, Austria's ostracism by its allies muted internal opposition to the new government as a sense of national victimhood developed. The sanctions also gave Freedom Party populists a rare chance to set the political agenda. (Since that party's entrance into the government, the more experienced ÖVP had led the way on other major issues.)

      While the government worked furiously abroad to have the sanctions lifted, the FPÖ pushed for a consultative referendum that would demonstrate that the citizens stood behind the government and against the sanctions. The referendum was canceled, however, after the sanctions were lifted on September 12. A report by an international team of experts had found that Austria was not guilty of mistreating its minorities or anyone else.

      In the coming months, domestic politics normalized, and the more mundane issues of budget cuts and industrial relations came to the fore. Although Austria's position on the EU had not officially changed, the sanctions episode left a bad taste, and the country seemed likely to take a more cautious, less enthusiastic view toward future cooperation with some of its EU partners. By December disenchantment with EU membership prompted 100,000 Austrians to sign a petition that called for a referendum on whether Austria should quit the EU.

      The turmoil in the spring and summer had no discernible effect on Austria's booming economy. With their gross domestic product expanding by an estimated 3.3%, its strongest performance in years, Austrians enjoyed a rosy combination of low unemployment, rapidly growing exports, and relatively subdued inflation. On almost any scale, Austria was one of the best-performing economies in the EU in 2000. Predictably, economic policy shifted to the right as the new government found its stride, although the changes were hardly radical. Committing to balancing the budget by 2002—a year earlier than anticipated, promising pension and welfare reform, and pledging less state involvement in various sectors of the economy, the new government shook up Austria in more ways than one.

Dan O'Brien

▪ 2000

83,859 sq km (32,378 sq mi)
(1999 est.): 8,080,000
Chief of State:
President Thomas Klestil
Head of Government:
Chancellor Viktor Klima

      At the end of 1999, Austria's main political parties—the centre-left Social-Democratic Party of Austria (SPÖ), the right-wing Freedom Party of Austria (FPÖ), and the centre-right Austrian People's Party (ÖVP)—were still locked in talks to form a new government following the October 3 general election. In a year dominated by elections—to state legislatures in March, the European Parliament in June, and, most important, the federal parliament in the autumn—the FPÖ gains attracted great attention and concern internationally because of the expression of extremist views by some party members.

      The FPÖ's first electoral breakthrough came when party leader Jörg Haider became governor of the state of Carinthia in April following his party's best-ever performance in any election. (See Biographies. (Haider, Jorg )) This presaged the party's gains in the October general election, in which it overtook the ÖVP by the narrowest of margins to become the country's second largest party. This did not herald a resurrection of the extreme right, however. The five-percentage-point increase in FPÖ support, to 27%, was instead a vote of protest against the dominance of the SPÖ and ÖVP, which together had controlled politics in Austria for most of the second half of the century. The FPÖ's populist policies, which promised to insulate Austrians from globalization and other perceived sources of economic insecurity, notably immigration, were also vote winners.

      Forming a new government hinged on two difficult issues. First, the ÖVP was reluctant—and the SPÖ flatly refused—to join with the FPÖ, which, while not as extremist a group as sometimes suggested, was nonetheless unpredictable, untested in government, and internationally reviled. Second, ÖVP leader Wolfgang Schüssel refused to go back on his pledge to return to opposition if his party finished in third place.

      The long-running debate on Austria's 45-year policy of military neutrality was fueled by the intervention of NATO in events in Yugoslavia. Supporters of NATO membership for Austria pointed out that the country's eastern neighbours—the Czech Republic, Hungary, and Poland—had joined the alliance in March and suggested the need for Austria to participate in Europe's main collective security structure. Opponents cited the success of neutrality in keeping Austria free from military entanglements and the cost of upgrading its military to make it compatible with NATO forces. Despite the support of two of the three largest parties, public opinion was overwhelmingly opposed to NATO membership.

      Only four years after joining the European Union, Austria abandoned its currency, the schilling, for the newly created euro, shared by 11 of the EU's 15 member states. (See European Union: Sidebar. (Euro's First Birthday )) Despite some protests in Austria and elsewhere, the euro was launched smoothly at the beginning of 1999. The success of the new currency and satisfactory performance of the European Central Bank effectively ended the debate on Austria's adoption of the euro.

      Following a sharp deceleration in economic growth at the turn of the year as a result of economic crises in Asia and Russia and a collapse in international business confidence, the Austrian economy bounced back after mid-1999. Performance above the EU average was largely the result of the enduring strength of the domestic economy as consumers shrugged off the effects of the crises and continued to spend. The sluggish demand for exports accounted almost entirely for the downturn in growth of gross domestic product from 3.3% in 1998 to an estimated 2% in 1999. The rate of unemployment, already among the lowest in Europe, fell further in 1999. Inflation fell to a 40-year low, remaining below 1% throughout the year.

Dan O'Brien

▪ 1999

      Area: 83,859 sq km (32,378 sq mi)

      Population (1998 est.): 8,070,000

      Capital: Vienna

      Chief of state: President Thomas Klestil

      Head of government: Chancellor Viktor Klima

      Austria's coalition government, led by Social-Democratic Party of Austria (SPÖ) leader Viktor Klima, consolidated its position in 1998, boosting its prospects in the federal elections that were to be held before the end of 1999. The junior party in the government, the centre-right Austrian People's Party (ÖVP), partially reversed the decline it had suffered in previous years with good results in state elections in April and consistently high opinion poll ratings throughout the year. The ÖVP had been in danger of being squeezed between its coalition partner on the left and the radical Freedom Party of Austria (FPÖ) on the right. The ÖVP was helped by accelerating economic growth and the end-to-austerity measures after Austria met the criteria for participation in the European Union's (EU) single currency. The party also won back supporters from the FPÖ after a financial scandal badly dented the former's image as an anticorruption party free from SPÖ-ÖVP influences.

      The prestige associated with Austria's tenure of the rotating EU presidency during the last half of the year strengthened the government and did much to cement the coalition. Ministers were obligated to work together on a tight schedule, and the parties cooperated to maintain a united front while Austria was in the European spotlight. Discord between the coalition parties lingered below the surface, notably over the issue of Austria's neutrality and, in particular, relations with NATO. In March 1996 a parliamentary committee had been established to assess alternative security options. The SPÖ, in line with public opinion, opposed joining NATO, whereas the ÖVP was strongly in favour. Agreement could not be reached, and the committee's report remained unpublished.

      The sense of active participation in European affairs during Austria's EU presidency may have helped tilt public opinion in favour of membership, but there was still great concern that when the EU was enlarged, workers from the new member states would have the right to live and work in Austria. Opinion polls suggested that most Austrians opposed such a move, fearing a large influx of economic migrants. The FPÖ, a party whose reputation was built in recent years by scapegoating foreign residents, ably exploited these fears. Popular concern was also evident at the rising level of foreign, particularly German, acquisitions of Austrian businesses. The wave of takeovers that followed accession to the EU continued in 1998, most notably when food retail group Julius Meinl AG, a national institution, was absorbed by a large German concern.

      The Austrian economy enjoyed strong growth with low inflation and low unemployment in 1998. Economic growth accelerated as the upturn in the wider European economy increased exports of goods and services. High levels of investment also boosted growth as both Austrian and foreign-owned firms geared up to meet expected higher demand in Europe and increase penetration into former communist bloc countries to the east. Unemployment remained under 5%—one of the lowest in the EU—without triggering any upward pressure on inflation. Another important factor in the improved economic performance was the resurgence of tourism, an industry that was proportionately more significant to the gross domestic product of Austria than to that of other tourism centres such as Spain and Greece. Following a decline in the mid-1990s and thanks to a strong schilling and proliferation of cheap airline fares from overseas, the number of tourist visits rose slightly. Equally important, growth was registered in the key German tourist market, and unfavourable exchange-rate adjustments were partially reversed.


▪ 1998

      Area: 83,859 sq km (32,378 sq mi)

      Population (1997 est.): 8,087,000

      Capital: Vienna

      Chief of state: President Thomas Klestil

      Head of government: Chancellors Franz Vranitzky and, from January 28, Viktor Klima

      The beginning of 1997 was marked in Austria by a change in government leadership. Chancellor Franz Vranitzky, who had taken office in June 1986, resigned on January 19, saying that 10 years were "a sufficient spell" for the job and that he wanted to make way for a younger generation.

      Vranitzky designated as his successor Finance Minister Viktor Klima, who was sworn in as chancellor on January 28. Klima, who was well known for having successfully brokered a difficult 1996-97 budget, quickly appointed a new Cabinet and in his formal declaration of government policy called maintaining a high level of employment in Austria "the central question for the future."

      Despite the smooth transition of power, Vranitzky's resignation came at an uncertain time for the country's ruling two-party coalition, made up of the Social-Democratic Party of Austria (SPÖ) and the right-of-centre Austrian People's Party (ÖVP). Local elections showed declining support for the ÖVP and the growing popularity of the extreme nationalist party, the Freedom Party of Austria (FPÖ), led by the outspoken Jörg Haider. The FPÖ was renowned for its controversial anti-immigrant stance and its severe criticism of the European Union (EU). Increasingly, however, it became clear that the party's appeal lay partly in its opposition to the long-standing privileges enjoyed by the two coalition members and to the exclusion of other parties from established political processes.

      The long-delayed privatization of the state-owned Creditanstalt Bankverein, a bank heavily influenced by the ÖVP, seemed only to confirm the political establishment's resistance to change and fear of outside influence. A non-Austrian consortium had been interested in purchasing Creditanstalt since 1994, but the government's desire to sell the bank to an Austrian investor was not a secret. In January Creditanstalt was finally sold to the country's leading bank, Bank Austria AG, which had ties to the SPÖ.

      Fear of change no doubt stemmed from the fact that the Austrian economy had been sluggish ever since the country joined the EU in 1995. By 1997 economic growth was slowly accelerating, thanks to exports and business investment in machinery and equipment, but growth in gross domestic product was only an estimated 1.6%, still below the EU average. The government's attempts at pension reform proved unpopular, and Austrians endured their second year of harsh government budget cuts designed to ensure Austria's qualification to take part in a single European currency, which was due to take place in 1999.

      Despite accusations that the government was too slow to change, the new chancellorship did seem to herald a shift in emphasis for the policies of the dominant SPÖ. Under the leadership of Vranitzky, the SPÖ had moved closer to the centre ground of politics, and Klima moved the party even farther in this direction, tightening up on immigration laws and pushing ahead with privatization, both traditional policies of the right. Unlike his predecessor, however, Klima was willing to communicate with Haider, although by the end of the year, the political threat posed by the FPÖ had become less significant.

      The economy finally seemed on the path to recovery, and unemployment had begun to fall. In October the ÖVP defied opinion polls by gaining seats in the local parliamentary elections in Upper Austria. Moreover, the budget was well on course to meet the requirements for joining the EU's economic and monetary union.

      Having endured some difficulties in its first two years as a member of the European Union, Austria looked forward to being in a strong position when it took over the six-month rotating presidency of the EU at the beginning of July 1998.


▪ 1997

      The federal republic of Austria is a landlocked state of central Europe. Area: 83,858 sq km (32,378 sq mi). Pop. (1996 est.): 8,102,000. Cap.: Vienna. Monetary unit: Austrian Schilling, with (Oct. 11, 1996) a free rate of 10.77 Schillings to U.S. $1 (16.97 Schillings = £1 sterling). President in 1996, Thomas Klestil; chancellor, Franz Vranitzky.

      Austria celebrated its 1,000-year history in 1996, commemorating the first documentary record in AD 996 of a territory called Ostarrîchi. (See SIDEBAR (AUSTRIA: Austria Turns 1,000 ).) For all the millennium celebrations, however, 1996 was a difficult year. Twelve months into its membership in the European Union (EU), Austria began the year with no government, a slow-growing economy, and an electorate increasingly dissatisfied with EU membership. By the second half of 1996, the political scene was even more clouded. The extreme nationalist party, Die Freiheitlichen (the Freedom Alliance, or Freedom Movement), formerly the Freedom Party (FPÖ), was enjoying a resurgence in popularity under its outspoken leader, Jörg Haider; bomb threats had been directed at Chancellor Franz Vranitzky by a neo-Nazi group, the Bajuvarian Liberation Army; and Pres. Thomas Klestil was seriously ill with pneumonia.

      The country lacked a government at the beginning of the year because an early election had been called in December 1995 when the two ruling parties, the Austrian Social Democratic Party (SPÖ) and the right-of-centre Austrian People's Party (ÖVP), had been unable to agree on the details of an austere 1996 federal budget. The SPÖ and ÖVP won the election but avoided forming an official government until a new budget that would meet the EU's strict criteria was agreed to in March. Meanwhile, the day-to-day duties of government continued uninterrupted.

      A tough two-year budget was announced when the government was formed on March 12. Austerity measures included an increase in the personal tax burden, cuts in cash benefits to families (such as child allowance), and a freeze on the recruitment of civil servants. Because the economy was not growing strongly, the government largely avoided cuts or tax increases that might have damaged businesses.

      Unemployment rose in the first half of the year, and more than 1,600 companies went bankrupt in the first nine months of 1996. Although EU membership did not directly cause the slowdown, increased competitive pressure on the Austrian economy after it joined the organization made many associate the EU with the country's economic woes. Some large, well-known Austrian companies were taken over by foreign buyers in 1996, which made Austrians nervous about foreign influences. This in turn led to delays in privatizing state-owned companies and to a renewed and heated debate about Austria's neutrality. The government also ran into trouble with the EU over highway tolls, which the European Commission found to be against EU rules.

      A key by-product of the electorate's general dissatisfaction with EU membership was a resurgence of the far-right and vehemently "Euroskeptic" Freedom Alliance. In June the party gained a foothold in provincial government for the first time when it won seats in the government of Burgenland, supposedly a pro-EU province. On October 13 the Freedom Alliance matched the SPÖ's performance in the country's first European Parliament elections, with six seats each. The ÖVP finished just ahead, with seven seats. In provincial elections on the same day in Vienna, traditionally a socialist stronghold, the SPÖ lost 10 seats and its absolute majority, the ÖVP lost 2 seats, and the Freedom Alliance gained 7.


▪ 1996

      The federal republic of Austria is a landlocked state of Central Europe. Area: 83,858 sq km (32,378 sq mi). Pop. (1995 est.): 8,063,000. Cap.: Vienna. Monetary unit: Austrian Schilling, with (Oct. 6, 1995) a free rate of 10.04 Schillings to U.S. $1 (15.87 Schillings = £1 sterling). President in 1995, Thomas Klestil; chancellor, Franz Vranitzky.

      The year 1995 was an eventful one in Austria. On January 1 the country became a member of the European Union (EU). Vienna was allowed to remain neutral for the time being but would cooperate in the construction of a future European Security System. Austria, which had already joined the "Partnership for Peace," aspired to membership in the coming European economic and currency union. Although the country had a hard currency and was the third wealthiest country in the EU, as measured in purchasing power, it might not meet the EU's stringent criteria for economic stability. Franz Fischler, the Austrian minister of agriculture, became commissioner of agriculture and rural development for the EU.

      After the October 1994 national parliamentary election, in which both the Social Democrats (SPÖ) and the Austrian People's Party (ÖVP) lost seats, the parties concluded a coalition agreement that November. Erhard Busek subsequently lost his positions as vice-chancellor and as chairman of the ÖVP. He was replaced in both offices by Wolfgang Schüssel, who also took over the Foreign Ministry from Alois Mock.

      In spite of a favourable business cycle, economic growth, higher employment, and a rate of inflation finally lowered to 2-3%, the gap between state revenues and expenditures had been wide for quite some time, and the budget deficit and state indebtedness became even greater in 1995. In order to hold the value of the schilling and to meet the EC criteria, it would be necessary to bring the budget deficit to 2.7% and state expenditures to 65% of gross domestic product by 1998.

      Disagreements over how to achieve this soon arose, however. The SPÖ, which supported higher taxes, and the ÖVP, which sought greater spending cuts, failed to reach a compromise. The coalition collapsed on October 12, and Chancellor Franz Vranitzky scheduled new elections for December 17. When the elections were held, Austrians rejected the sharp turn to the right many had predicted and gave the SPÖ 38.3% of the vote. Schüssel, leader of the ÖVP, lost his chance to form a rightist coalition government when his party garnered only 28.3%, and Jörg Haider's right-wing Freedom Party—third, with 22.1%—suffered its first electoral setback since 1986.

      The unsolved murders of four Gypsies and a series of letter-bomb attacks caused anxiety among the populace and revealed differences of opinion on the relative importance of safety and civil liberties—for example, on the question of wiretapping. One leader of a neo-Nazi radical-right group was sentenced to a prison term. Meanwhile, an Austrian national fund for the victims of the Nazis in World War II was set up, with an initial capitalization of 500 million Schillings.

      Accusations of sexual abuse of seminarians at the hands of the nation's highest Roman Catholic dignitary, Hans Hermann Cardinal Groer, caused a wave of revolt among the laity, many of whom had been unhappy with the leadership of the church for some time. The consequences were a massive flight from the churches, financial disaster, and a popular initiative signed by more than 400,000 people. Groer's successor as archbishop of Vienna, Christoph Schönborn, sought a way to mediate between the unpopular conservative leaders and the reformers, who demanded, among other things, more consultation on appointments, relaxation of celibacy requirements, admission of women to the priesthood, and less interference by the church in sexual matters.

      The number and severity of commercial insolvencies in 1994-95 reached heights heretofore unknown. The loss for 1995 was reckoned to be between 50 and 60 billion Schillings. In the foreground was the bankruptcy of Konsum, the flagship of the Social Democrats and the unions.


▪ 1995

      The federal republic of Austria is a landlocked state of Central Europe. Area: 83,859 sq km (32,378 sq mi). Pop. (1994 est.): 8,027,000. Cap.: Vienna. Monetary unit: Austrian Schilling, with (Oct. 7, 1994) a free rate of 10.85 Schillings to U.S. $1 (17.25 Schillings = £1 sterling). President in 1994, Thomas Klestil; chancellor, Franz Vranitzky.

      In a referendum in June 1994, Austrians voted two to one in favour of joining the European Union (EU). This was the most significant development in Austrian history since 1955, when the state treaty that ended the post-World War II Allied occupation and restored Austrian sovereignty was signed. Accession to the EU, to take effect on Jan. 1, 1995, signified no compromise of the country's constitutionally mandated neutrality. As an EU member, Austria would not station foreign soldiers on its territory, take part in any war, or sign any military pact. The question of Austria's later participation in a European defense pact remained open.

      In March elections were held to the regional parliaments in Kärnten, Tirol, and Salzburg. Losses by the Social Democrats (SPÖ) led to the resignations of the party leaders in Kärnten and Tirol. The Christian-democratic Austrian People's Party (ÖVP) lost in Salzburg and Tirol. The right-wing Austrian Freedom Party (FPÖ), under the leadership of millionaire Jörg Haider, registered gains. The Greens advanced, but the Liberal Forum scored no breakthrough and did not win representation in any regional parliament. Kärnten saw weeklong "political theatre" that ended in an electoral standoff; the state governor's job was retained by the chief of the ÖVP, the smallest faction in the Kärnten parliament.

      A similar pattern emerged in the parliamentary elections in early October. The share of votes cast for the SPÖ fell from 42.8% in 1990 to 35.2% and that of the ÖVP dropped from 32% to 27.7%, while the FPÖ gained. (For tabulated results, see Political Parties, above.) For the first time, the two main parties lost their joint absolute majority in the parliament, which was required for the passage of laws, and would be forced to negotiate with the FPÖ. Several weeks after the elections, the partners in the shaky caretaker coalition still had not managed to sort out allocations of power and responsibility, notably on questions of who was to be in charge of Austria's European Union policy and if and how the government's economic-austerity program would be implemented.

      Problems were caused anew by the influx of foreigners into Austria. By mid-1994 immigrants numbered 300,266, including some 150,000 from the former Yugoslavia and about 54,000 from Turkey. Besides these legal immigrants there were tens of thousands of "illegals," many of whom were prostitutes and criminals. Pressures on the housing market were immense (causing a housing shortfall of some 300,000 units), rents rose, and young people grew increasingly frustrated. The official policy established on the basis of the strict asylum law passed in 1992 was especially explosive. Assailed as too rigorous and inhumane, it was frequently cause for public criticism, even by the UN. The "invasion" of foreigners was unpopular, strengthened radicalism, and led in some cases to violence. A special unit of border defense troops to secure Austria's eastern borders—which, beginning in 1995, would be those of the EU as well—was being established.

      The economic recession of 1993 played out somewhat more mildly than had been feared, thanks to government countermeasures. A new upturn began in 1994, and a growth rate of 2.5% for the year (rising to 3% in 1995) was projected, with between 18,000 and 27,000 new job openings. Industrial production and exports led the way as Austria enhanced its role as a major conduit for trade and investment between the EU and the emerging economies of Eastern Europe. On the downside were the budget deficit (66.4 billion Schillings in 1992, 100 billion Schillings in 1993, and at least the same level in 1994) and the national debt (projected to reach 1.2 billion Schillings by the end of 1994), burdened with an annual interest of 70 billion-80 billion Schillings. In addition, net payments of some 20 billion Schillings into the EU would begin in 1995.

      Environmentalists and citizens' groups had long been concerned about the nuclear power plant at Temelin, Czech Republic, near the Austrian border. With the help of a $300 million ExImBank loan, the plant, which many feared was technologically unsound, was to be completed in 1995. Strong representations by Austrian politicians in the Czech Republic and the U.S. proved futile.


▪ 1994

      The federal republic of Austria is a landlocked state of Central Europe. Area: 83,859 sq km (32,378 sq mi). Pop. (1993 est.): 7,938,000. Cap.: Vienna. Monetary unit: Austrian Schilling, with (Oct. 4, 1993) a free rate of 11.42 Schillings to U.S. $1 (17.31 Schillings = £1 sterling). President in 1993, Thomas Klestil; chancellor, Franz Vranitzky.

      Negotiations began on Feb. 1, 1993, on Austria's full membership in the European Community (EC). Areas for discussion included Austria's agricultural policy, land titles, and neutrality; maintaining the country's high social and environmental standards; and, above all, ensuring that the Transit Treaty between Austria and the EC remained in force until the year 2004. Austria was to hold a referendum on the issue and could accede to the EC as early as Jan. 1, 1995.

      The economy was expected to contract by about 2% in 1993. Austria also experienced a massive fall in exports, a rapid decline in industrial production, and a series of failures of large enterprises. Particularly affected were steel, iron, chemical, paper, and textile production, where state-owned heavy industry saw losses of several billion Schillings. Unemployment reached its highest level in 40 years, with an average of 130,000 people out of work in 1993. Struggling to restructure itself under acute pressure from Eastern European markets, with their lower wage and price structures, Austrian industry badly needed an upturn in the economy.

      All sides clamoured for subsidies in order to stem a tide of bankruptcies that caused losses exceeding 35 billion Schillings by the end of the third quarter. These demands put pressure on the 1994 budget, originally to have been an austerity plan but in the event having to include a 3% deficit. Even worse, the national debt crossed the significant billion-Schilling threshold in March. The lean year of 1993 was also characterized by further privatization of state property, curtailment of social services, and rising taxes. With the increase in the capital gains tax to 22%, very low interest, and rising inflation rates, many bank depositors found that they were losing money.

      As a result, the two major political parties, the social-democratic Austrian Socialist Party and the Christian-democratic Austrian People's Party, suffered heavy losses in regional elections in Niederösterreich, Salzburg, and Graz. The winners at the ballot box were the right-wing Austrian Freedom Party (FPÖ), the Greens, and the splinter parties. Nationalism and the radical right also grew stronger in Austria, as was the case elsewhere in Europe. The FPÖ launched a rather unsuccessful antiforeigner petition drive at the end of January, and at the same time, a number of laws regulating the status of foreigners were rescinded. Action groups such as "SOS-Our Fellow Man" and "Laws, Not Foreigner Bashing" staged a large "sea of light" candlelight demonstration, in which some 200,000 persons participated. In early February five dissidents under FPÖ deputy head Heide Schmidt left the party to found the Liberal Forum and set up a separate parliamentary faction. This group, in turn, joined the Liberal International, from which the FPÖ resigned in order to avoid likely expulsion. In December right-wing extremists were blamed for a series of letter-bomb attacks, one of which injured the mayor of Vienna.

      In June, after decades of tension caused by Austria's refusal to accept any responsibility for Nazi crimes, the pro-Arab policies of former chancellor Bruno Kreisky, and the outrage over the election of Kurt Waldheim as federal president, the country's relations with Israel began an entirely new chapter. During the first visit to Israel by an Austrian head of state, Chancellor Franz Vranitzky acknowledged Austria's collective responsibility for the victims of Nazi crimes. Various agreements were signed that greatly broadened cooperation between the two countries.

      A number of former officials—including Chancellor Fred Sinowatz, Foreign Minister Leopold Gratz, and Interior Minister Karl Blecha—faced trial in June for alleged involvement in the illegal export of arms to Iran; only Blecha was convicted. The largest conference in UN history—and the first World Conference on Human Rights in 25 years—took place in June as delegates from 171 countries gathered in Vienna. (ELFRIEDE DIRNBACHER)

* * *

Austria, flag of   largely mountainous, landlocked country of south-central Europe. Together with Switzerland, it forms what has been characterized as the neutral core of Europe, notwithstanding Austria's full membership since 1995 in the supranational European Union (EU).

      A great part of Austria's prominence can be attributed to its geographic position. It is at the centre of European traffic between east and west along the great Danubian (Danube River) trade route and between north and south through the magnificent Alpine passes, thus embedding the country within a variety of political and economic systems. In the decades following the collapse in 1918 of Austria-Hungary, the multinational empire of which it had been the heart, this small country experienced more than a quarter century of social and economic turbulence and a Nazi (Nazi Party) dictatorship. Yet the establishment of permanent neutrality in 1955, associated with the withdrawal of the Allied troops that had occupied the country since the end of World War II, enabled Austria to develop into a stable and socially progressive nation with a flourishing cultural life reminiscent of its earlier days of international musical glory. Its social and economic institutions too have been characterized by new forms and a spirit of cooperation, and, although political and social problems remain, they have not erupted with the intensity evidenced in other countries of the Continent. The capital of Austria is historic Vienna (Wien), the former seat of the Holy Roman Empire and a city renowned for its architecture.

Land (Austria)
      Austria is bordered to the north by the Czech Republic, to the northeast by Slovakia, to the east by Hungary, to the south by Slovenia, to the southwest by Italy, to the west by Switzerland and Liechtenstein, and to the northwest by Germany. It extends roughly 360 miles (580 km) from east to west.

      Mountains and forests give the Austrian landscape its character, although in the northeastern part of the country the Danube River winds between the eastern edge of the Alps and the hills of Bohemia and Moravia in its journey toward the Alföld, or Hungarian Plain. Vienna lies in the area where the Danube emerges from between the mountains into the drier plains.

 The Austrian Alps form the physical backbone of the country. They may be subdivided into a northern and a southern limestone range, each of which is composed of rugged mountains. These two ranges are separated by a central range that is softer in form and outline and composed of crystalline rocks. The Alpine landscape offers a complex geologic and topographical pattern, with the highest elevation—the Grossglockner (12,460 feet [3,798 metres])—rising toward the west. The western Austrian Länder (states) of Vorarlberg, Tirol, and Salzburg are characterized by the majestic mountains and magnificent scenery of the high Alps. This high Alpine character also extends to the western part of the state of Kärnten (Carinthia), to the Salzkammergut region of central Austria, and to the Alpine blocks of the state of Steiermark (Styria).

      North of the massive Alpine spur lies a hilly subalpine region, stretching between the northern Alps and the Danube and encompassing the northern portion of the state of Oberösterreich (Upper Austria). To the north of the river is a richly wooded foothill area that includes a portion of the Bohemian Massif, which extends across the Czech border into the state of Niederösterreich (Lower Austria). This part of Austria is furrowed by many valleys that for centuries served as passageways leading to the east and southeast of Europe and even—in the case of medieval pilgrims and Crusaders—to the Holy Land. The lowland area east of Vienna, together with the northern part of the state of Burgenland, may be regarded as a western extension of the Little Alföld (Little Alfold) (Little Hungarian Plain).

      Austria is a land of lakes, many of them a legacy of the Pleistocene Epoch (from about 1,600,000 to about 10,000 years ago), during which glacial erosion scooped out mountain lakes in the central Alpine district, notably around the Salzkammergut. The largest lakes—lying partly in the territory of neighbouring countries—are Lake Constance (Constance, Lake) (Bodensee) in the west and the marshy Neusiedler Lake (Neusiedlersee) in the east.

 Nearly all Austrian territory drains into the Danube River system. The main watershed between the Black Sea and the North Sea runs across northern Austria, in some places lying only about 22 miles (35 km) from the Danube, while to the west the watershed between the Danube and the river systems emptying into the Atlantic (Atlantic Ocean) and the Mediterranean (Mediterranean Sea) coincides with the western political boundary of Austria. In the south the Julian (Julian Alps) and Carnic (Carnic Alps) (Karnische) Alps and, farther to the west, the main Alpine range mark the watershed of the region draining into the Po River of northern Italy.

      The wooded slopes of the Alps and the small portion of the plains of southeastern Europe are characterized by differing climatic zones. The prevailing wind is from the west, and, therefore, humidity is highest in the west, diminishing toward the east. The wetter western regions of Austria have an Atlantic climate with a yearly rainfall of about 40 inches (1,000 mm); the drier eastern regions, under the influence of the more continental type of climate, have less precipitation.

      In the lowlands and the hilly eastern regions, the median temperature ranges from about 30 °F (−1 °C) in January to about 68 °F (20 °C) in July. In those regions above 10,000 feet (3,000 metres), by contrast, the temperature range is between about 12 °F (−11 °C) in January, with a snow cover of approximately 10 feet (3 metres), and about 36 °F (2 °C) in July, with roughly 5 feet (1.5 metres) of snow cover.

Plant and animal life
 Two-thirds of the total area of Austria is covered by woods and meadows. Forests occupy some two-fifths of the country, which is one of the most densely forested in central Europe. Spruce dominates the forests, with larch, beech, and oak also making a significant contribution. In the Alpine and foothill regions coniferous trees predominate, while broad-leaved deciduous trees are more frequent in the warmer zones.

      Wild animals, many protected by conservation laws, include the brown bear, eagles, buzzards, falcons, owls, cranes, swans, and storks. Game hunting is restricted to certain periods of the year, with deer and rabbits the most frequent quarry. Austrian rivers nurture river and rainbow trout, grayling, pike, perch, and carp.

People (Austria)

Ethnic groups
      Ethnic Austrians constitute the vast majority of the population. Small but significant groups of German-speaking (German language) Swiss and ethnic Germans also reside in the country. Bosniacs (Muslims from Bosnia and Herzegovina; living mainly in the larger cities), Turks (living primarily in Vienna), Hungarians and Croats (living mainly in Burgenland), and Slovenes (living mainly in Kärnten) constitute the major ethnic minorities.

      Although Croatian, Hungarian, Slovenian, Turkish, and other languages are spoken by the various minority groups, nearly all people in Austria speak German (German language). The dialect of German spoken in Austria, except in the west, is Bavarian, sometimes called Austro-Bavarian. About 7,000,000 people speak Bavarian in Austria. A Middle Bavarian subdialect is spoken chiefly in Ober- and Niederösterreich as well as in Vienna. A Southern Bavarian subdialect is spoken in Tirol (including southern Tirol), in Kärnten, and in parts of Steiermark. The speech of most of the remainder of the country's inhabitants tends to shade into one or the other of those subdialects. In the west, however, an Alemannic (Swiss) dialect prevails: the inhabitants of Vorarlberg and parts of western Tirol are Alemannic in origin, having cultural and dialectal affinities with the German Swiss to the west and Swabians in Germany to the north.

      More than four-fifths of Austrians are Christian. The overwhelming majority of Christians are adherents to Roman Catholicism; Protestants (mainly Lutherans) and Orthodox Christians form smaller groups. Islam has a small but important following, mainly among the Bosniac and Turk populations. Vienna's Jewish population, which was all but destroyed between 1938 and 1945 (see Holocaust), has increased steadily since that time but remains tiny. More than one-tenth of the population is nonreligious.

Settlement patterns
 The pattern of rural settlement in Austria was shaped centuries ago by the exigencies of the Alpine environment, and new rural building is still influenced by these ancient traditions, especially in the west and in the centre of the country. By contrast, rural housing in the eastern parts of the country, especially in the lowlands, is dominated more by agricultural needs than by harsh weather conditions.

 While Austria is mountainous, it is also a highly urbanized country. More than half of the population lives in cities and towns of more than 10,000 residents, and about one-fourth of the total population lives in the Vienna urban agglomeration. Graz, Austria's second largest city, is the gateway to the Balkans. Linz is an important industrial centre. Innsbruck, situated just north of Brenner Pass, is the rail centre through which all the mainline rail traffic of western Austria passes, north-south and east-west. Salzburg is a centre of music and Baroque architecture. Klagenfurt lies astride routes that provide access to both Italy and the Balkans.

Demographic trends
      Austria's population grew steadily from the mid-20th century to the mid-1990s; it then remained fairly constant into the early 21st century. An increasingly high life expectancy has served to offset the declining birth rate.

      Because of its geographic position and historical affinities, Austria in general and Vienna in particular served as a haven for refugees (refugee) and other emigrants from eastern Europe during the decades of the Cold War, when migration out of the Soviet bloc was severely restricted. Austria supported a generous policy of admitting and maintaining such migrants until places for them abroad could be found. About 170,000–180,000 Hungarians escaped into Austria after the uprising in Hungary in 1956; some remained permanently in Austria, but most were resettled overseas. After the precipitous political upheavals of 1989–91, when the Soviet Union collapsed, Austria became the first station in the West for thousands of emigrants from eastern Europe. Many remained permanently in Austria, particularly in Vienna, Graz, Linz, and other large cities. In the early 21st century, foreign residents accounted for almost one-tenth of the country's total population. Among them were many EU nationals residing permanently in Austria, a large number of them in Vienna.

      Austria's government played an important role in the economy from the post-World War II years until the late 20th century. In 1946 and 1947 the Austrian parliament enacted legislation that nationalized (nationalization) more than 70 firms in essential industries and services, including the three largest commercial banks, such heavy industries as petroleum and oil refining, coal, mining, iron and steel, iron and steel products (structural materials, heavy machinery, railway equipment), shipbuilding, and electrical machinery and appliances, as well as river navigation. Later reorganization reduced the number of nationalized firms to 19 and placed the property rights with limited powers of management and supervision into a holding company owned by the Republic of Austria, the Österreichische Industrieverwaltungs-Aktiengesellschaft (ÖIAG; Austrian Industrial Administration Limited-Liability Company). In 1986–89 ÖIAG was restructured to give it powers to function along the lines of a major private industry, and it was renamed Österreichische Industrieholding AG. During the 1990s, particularly after Austria joined the EU in 1995, many companies and enterprises were partially or completely privatized, which reduced the direct role of government in Austria's economy. Indeed, in the late 20th and early 21st centuries, ÖIAG functioned largely as a privatization agency, as it sold off large portions of many of its holdings. However, the government continued to control, at least partially, some companies and utilities. Although Austria's economy may have been somewhat slow to liberalize and privatize, it has made the transition from an industrially and agriculturally based economy to one in which the service sector is increasingly important.

Agriculture and forestry
      Agriculture employs only a small percentage of Austria's workforce and accounts for only a tiny portion of the gross domestic product (GDP). Because of the country's mountainous terrain, only about half of the land can even potentially be cultivated. Agricultural areas are found mainly in the east—particularly in Burgenland, Steiermark, Kärnten, and Niederösterreich—and farms are usually small or of medium size. Crops include sugar beets, wheat, corn (maize), barley, potatoes, apples, and grapes. Pigs and cattle also are raised.

      Many farmers need additional income through nonfarm employment, and a significant number of farmers (so-called mountain farmers) receive subsidies from the government and the EU for maintaining the cultural landscape (e.g., preventing the natural reforestation of clearings), which is important for tourism. However, both specialization and concentration on quality rather than quantity allow Austria's small farmers to compete within the EU. For example, the number of organic farms in the country increased from about 100 in the late 1970s to more than 20,000 by the end of the 20th century—more than in any other EU country.

      Austria's vast forested areas provide ample timber resources. Some of the timber felled is processed in the country, and most of it is exported, especially to Italy.

Resources and power
      The natural resources available within the country for industrial exploitation are of considerable significance. Austria is a leading producer of natural magnesite, a magnesium carbonate used extensively in the chemical industry. Kärnten is the main centre of its production. Other important mineral resources include iron (iron processing), lignite, anhydrous gypsum, lead and zinc, and antimony. Iron ore from Eisenberg (in Steiermark) is obtained through opencut mining and is processed in such industrial centres as Linz and Leoben.

      While oil and natural gas deposits in northeastern Austria are exploited, oil and gas must be imported to meet industrial and consumer needs. The large oil refinery at Schwechat processes crude oil from Austrian sources as well as oil pumped through the Vienna-Adriatic pipeline from the port of Trieste, Italy. Additional natural gas is supplied by pipeline from Ukraine. Coal, mainly bituminous, is found chiefly in Oberösterreich and Steiermark and only in relatively small quantities.

      The country's power needs are met by coal, oil, natural gas, and hydroelectric plants. Increases in domestic power production have helped offset the country's import debt in its balance of payments. In fact, with its dense network of rivers and mountainous terrain, Austria is a major exporter of hydroelectric power. In 1978 a plan to build a nuclear power plant on the Danube was roundly opposed, and the Austrian parliament passed legislation prohibiting nuclear power generation.

      Austria's manufacturing sector accounts for a significant portion of the GDP; it is also one of the country's main generators of foreign currency through exports, an important factor in the economy of a small country. Austrian manufacturing focuses on specialized high-quality products, mainly in the traditional industries. Although high-technology production was slow to take hold in the country, by the turn of the 21st century a number of firms had begun to find success through advanced technological development.

      Iron and steel production has long been a leading industry. An important Austrian innovation in steelmaking was the basic oxygen process, or LD process, originally named for the cities of Linz and Donawitz (the latter now part of Leoben); it is used under license by steelworks throughout the world. A considerable portion of Austria's iron and steel industry is involved with construction abroad. Iron and steel firms furnish plants and installations of all descriptions in every phase of construction and equipping in Europe, North America, and elsewhere. Working alone or in consortia with firms of other countries, Austrian companies typically build hydroelectric or thermal power stations, chemical plants, steelworks, and seamless pipelines. The industrial plants may be largely equipped with such Austrian capital goods as electrical and electronics equipment. Austria is noted for providing plants abroad “completely to measure.”

      Other important manufactured products include aluminum, industrial machinery, motor vehicles (especially industrial and rough-terrain vehicles) and parts, chemicals, electronic goods and components, textiles, and such consumer goods as foodstuffs, glass and porcelain, and highly prized handmade products.

      In general, Austria's manufacturing sector consists mainly of small- and medium-sized firms, although a small number of large firms do produce such goods as cement, paper, beer, and sugar and sugar products. In the early 21st century the majority of manufacturing companies were Austrian-owned, either held privately or controlled by the government. However, a significant number of German, Dutch, Swiss, and other foreign companies have manufacturing facilities in Austria.

      Monetary policy is determined by the European Central Bank and implemented by the Austrian National Bank (Österreichische Nationalbank), founded in 1922. Austria was among the first group of countries to adopt the single currency of the EU, the euro, in 1999; it made the complete switch from schillings to euro notes and coins in 2002.

      Financial services are handled by a wide range of institutions, including large nationally owned and foreign banks, the Austrian Post Office Savings Bank (Österreichische Postsparkasse), smaller local savings banks, and commercial credit and agricultural credit cooperatives. The Vienna Stock Exchange (Wiener Börse), founded in 1771 by Empress Maria Theresa, is one of the oldest such institutions in Europe. Shares of both Austrian and foreign companies are traded there.

      Since the fall of the Iron Curtain, Austrian private investors and entrepreneurs have found a new arena for foreign investment in Austria's former imperial domains—above all Hungary, but also the Czech Republic, Slovakia, Slovenia, Croatia, and, to a lesser extent, northern Italy. Thousands of Austrian companies, mostly small and medium-sized, have been involved in investment projects in these countries since the mid-1990s. Notable examples of Austrian ventures in eastern European countries have included an extensive network of OMV gas stations and numerous branch offices of Bank Austria.

      Austria's main trading partners are EU (European Union) member countries, the United States, and Switzerland. Important exports include machinery, vehicles, chemicals, and iron and steel; among the major imports are machinery, transport equipment, vehicles, chemicals, mineral fuels, and food products.

      At the beginning of the 21st century, the service sector employed more than three-fifths of Austria's workforce and generated the large majority of the country's GDP. However, this should not be interpreted as an indication of rapid economic modernization or of the swift development of high-technology service industries. Services, more than any other sector of the Austrian economy, are clearly dominated by the government. Public services were particularly expanded in connection with the so-called “controlled capitalism” concept of the post-World War II years, whereby the social welfare state, through the nationalization of companies, aimed to create more jobs, particularly protected jobs. The public sector also reached out into once privately performed services: banking and insurance; teaching at all levels; cultural institutions such as theatres, symphony orchestras, and operas; transportation and communication; all levels and kinds of administration; and the general health care system, including hospitals, clinics, and most retirement homes. In all, a minority of service jobs are in the private sector, while the government at all levels (local, state, and federal) still controls the majority.

 Despite its leading contribution to the economy, the service sector in Austria creates rather little new money, with the exception of financial services, some services offered abroad (such as banking in eastern European countries), and tourism. Indeed, tourism is Austria's most important invisible asset. With its picturesque landscape, villages, towns, and cities; its highly developed hotel and catering industry; its renowned facilities for skiing and other outdoor sports; its spas and resorts; and its fabled cultural institutions—not to mention its relative ease of access—Austria is to the outsider a tourist destination par excellence.

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. Austria's major airport is at Schwechat, near Vienna.

      Telecommunications systems, including a fibre-optic network, are well developed, and, as in most neighbouring countries, cellular telephones are commonly used. At the beginning of the 21st century, rates of personal computer ownership and Internet usage, though not as high as in Germany and Switzerland, were higher than those in nearby eastern European countries.

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 (Dollfuss, Engelbert) and Kurt von Schuschnigg (Schuschnigg, Kurt von). This in turn was eliminated by Adolf Hitler (Hitler, Adolf) 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.

      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
      The first popular election of a president, although provided for by a 1929 amendment to the constitution, did not take place until after the death of the first post-World War II president, Karl Renner (Renner, Karl), who had been unanimously elected by the national assembly after the liberation of 1945.

      The system of political parties of Austria, in a close parallel to the party structure of Germany, is characterized by two dominant parties of the centre-right and centre-left, along with two smaller but effective populist parties and the environmentalist Greens. A small communist party and a number of other fringe parties also exist.

      The centre-right Austrian People's Party (Österreichische Volkspartei; ÖVP), which describes itself as a “progressive centre party,” is the successor of the Christian Social Party founded in the 1890s. A Christian Democratic party, it is a member of the European Union of Christian Democrats and represents a combination of conservative forces and various social and economic groups that form semi-independent federations within the overall party. The divergent economic and social interests of these groups—which include workers and employees, farmers, employers and tradespeople, feminists, young populists, and senior citizens—are not always easy to reconcile.

      The centre-left Social Democratic Party of Austria (Sozialdemokratische Partei Österreichs; SPÖ; until 1991 the Socialist Party) was founded in 1945. It is a successor of the original Social Democratic Party (founded in 1889), which was a driving force in the establishment of the First Austrian Republic in 1918. Since 1945 the party has moved from a democratic Marxist doctrine to a more pragmatic and less ideological approach. Party programs have emphasized the correction of social problems, government influence on an expanding and socially oriented economy, full employment, and increase in the standard of living. No longer exclusively the party of the working classes, its appeal has widened to the middle classes.

      The populist Freedom Party of Austria (Freiheitliche Partei Österreichs; FPÖ), sometimes referred to as the Liberal Party, was founded in 1955 as a successor to the League of Independents. It is progressive and anticollectivist in character and stands for moderate social reform, participation of workers in management, and European unity. In 2005 disputes between moderates and hard-liners within the party led some members to leave the FPÖ and form a new party, the Alliance for the Future of Austria (Bündnis Zukunft Österreich; BZÖ), which entered the legislature in 2006.

      The environmentalist parties, including the Green Alternative (Die Grüne Alternative; GA; founded 1986) and the United Greens of Austria (Vereinte Grüne Österreichs; VGÖ; founded 1982), have come to be known collectively as the Greens. The Greens first won seats in the Austrian parliament in 1986.

      The Communist (communism) Party of Austria (Kommunistische Partei Österreichs; KPÖ; founded 1918) is of only marginal strength and has not been represented in the national parliament since 1959 or in the provincial diets since 1970. An extreme right-wing party, the National Democratic Party (Nationaldemokratische Partei; NDP; founded 1966), has disappeared from the political scene.

      In the 13 National Council elections held between 1945 and 1986, the two historically dominant Austrian political parties—the People's Party and the Socialist Party—garnered the largest share of the vote. However, in the November 1990 election the People's Party lost ground to the Freedom Party, which won 17 percent of the vote. In the 1999 national election the Freedom Party narrowly overtook the People's Party and afterward joined the latter in a coalition government. The ascendancy of the Freedom Party—and after 2006 that of its offshoot, the BZÖ—raised concern among some Austrians and other EU member countries because of the apparent far-right-wing tendencies of its leadership. In the early 21st century the declining popularity of both the Social Democrats and the People's Party, as well as antipathy between various party leaders, made the formation of lasting government coalitions difficult.

      The Austrian constitution provides for popular initiatives (Volksbegehren), by which 200,000 vote-eligible citizens or half the populations of three states can petition parliament for approval of any bill; it also can be initiated by a majority of the National Council. A total revision of the constitution must be approved by plebiscite.

      The Austrian military comprises both land and air forces. Conscripts make up a significant portion of the armed forces: all male citizens between ages 18 and 50 are liable for military service, and conscripts are called up for several months of training, followed by an obligation to remain in reserve for a number of years. A national police organization carries out law enforcement.

Health and welfare
      Public health in Austria is the responsibility of a federal ministry of health. It supervises a number of subsidiary institutes responsible for the prevention of infectious diseases and inspection of drugs and food. The provincial governments also have public health centres, and each municipality and rural district must employ a public health physician.

      National health insurance covers expenses of medical and hospital treatment: blue- and white-collar workers and salaried employees are protected in cases of sickness, disability, unemployment, and maternity and in their old age. There are survivors' pensions as well. Pension systems for self-employed persons and farmers also have been established. Social and medical insurance is funded through payroll deductions and taxes.

      The federal government oversees education in Austria. A major reform of the school administrative structure, providing for a unitary school system with access to higher education and experimentation with various types of schools, was initiated in 1970 and led to an “educational revolution” with free access to many avenues of basic, advanced, and vocational instruction for everyone.

      School attendance is obligatory between ages 6 and 15. Intermediate schools include those preparing students for university and other higher studies, for teachers' and commercial colleges, and for other specialized institutions. The academic Gymnasium is the secondary school leading to the university.

      Austria has a number of universities and fine arts colleges. The University of Vienna (Vienna, University of) was founded in 1365. The University of Graz was founded in 1585, and the universities of Innsbruck and Salzburg were founded during the 17th century. Separate technical universities are located at Vienna and Graz. Reforms were initiated in 1975 to expand and democratize university programs and governing procedures. A wide program of adult education is available throughout the country.

Cultural life

Cultural milieu
 Austria has been a leader and guardian of some of the most sublime achievements in music, theatre, literature, architecture, medicine, and science. Austrian culture is a part of the mainstream of Germanic culture that is shared with Germany and Switzerland. But what has shaped it and dominated it, what has made it essentially Austrian, are the Habsburg empire and the Christian church.

      The emperor Maximilian I (reigned 1493–1519) was a poet and a patron of the theatre, and the era that began in the reign of Maria Theresa (1740–80) and ended in that of Francis Joseph (1848–1916) was an age of spectacular flourishing in the arts and sciences. During this time an aggregation of genius and talent in often interlocking circles was gathered in Vienna. Moreover, the Habsburg dynasty's tradition of patronage of the arts has carried over to the modern republic of today.

      The church was a powerful influence on Austrian architecture, drama, and music. The great Romanesque monasteries, the Gothic St. Stephen's Cathedral (Saint Stephen's Cathedral) in Vienna, and the splendours of the quintessentially Austrian Baroque—exemplified by the works of Austrian architect Johann Bernhard Fischer von Erlach (Fischer von Erlach, Johann Bernhard) and the Bohemian architects Christoph Dientzenhofer (Dientzenhofer, Christoph) and Kilian Ignaz Dientzenhofer (Dientzenhofer, Kilian Ignaz)—and Rococo obviously derive from the church. The Austrian theatre has its origins in late medieval religious drama, and the affinities of the church with Austrian music continue down to modern times.

      Despite the fact that Austrian high culture never has been contained by the borders of the country but rather is considered part of the greater cultural realm of the German-speaking world, many Austrians long imagined their country as blissfully isolated and neutral—an “island of the blessed.” In fact, for many years after World War II, Austria promoted the idea of having been the first “victim” of Nazi Germany and, some would say, deliberately avoided confronting the guilt surrounding its participation in the Anschluss (“Union”) with Germany. But by the end of the 20th century, the forces of globalization and international competition, spurred by the opening of the Iron Curtain in 1989 and Austria's admittance to the EU in 1995, had brought Austria's imagined perfection into question. The increased immigration of foreigners into the country has caused particular concern among many Austrians, who fear that their carefully tailored social welfare system may be overburdened and their own Austrian identity threatened. Such sentiment has appeared particularly strong in Vienna, where large numbers of immigrants reside.

Daily life and social customs
      Most ordinary Austrians may be aware of Austria's historical contributions to high culture, but in general only members of the educated middle class and the elite circles of society participate in glamorous cultural events like the Salzburg Festival of theatre and music. Ordinary Austrians, particularly those who live in small towns and in the rural valleys of the countryside, pursue a more common—but in no way less typically Austrian—cultural life, with its roots in regional traditions, age-old rituals and customs, and a friendly communal spirit. Membership in local organizations called Vereine plays a great role in this culture. Informal gatherings are commonplace as well, and going out to meet friends in restaurants or cafés is an integral part of everyday life. A surprisingly large number of Austrians play instruments in bands, sing in choirs, or make music in smaller groups at home or with neighbours. Many wear traditional costumes (Trachten), such as full-skirted dirndls or loden coats (loden coat), every day, and many more wear them on weekends and on festive or special occasions, including weddings and funerals. Although popular music, motion pictures, television, and other elements of popular culture are enjoyed throughout the country, these aspects of traditional Austrian culture remain important, even to the young.

      Most Austrians celebrate the major Christian holidays, though many revered Austrian traditions surrounding these holidays are said to have their roots in pre-Christian times. Glöcklerlauf, a festival that takes place the evening before Epiphany (January 6), is celebrated especially in the mountainous regions of Oberösterreich, Steiermark, and Tirol and features activities meant to drive away the evil spirits of winter. During the festival, young men and boys wear loudly clanging bells and carry handmade masks—often extremely large, lighted from within, and decorated with Christian and secular designs—on their heads and shoulders.

The arts
 Austria is known for its contributions to music, especially during the Classical and Romantic periods. The major work of outsiders such as Ludwig van Beethoven (Beethoven, Ludwig van) (from Bonn [Germany]), Johannes Brahms (Brahms, Johannes) (from Hamburg), and—in part—Richard Strauss (Strauss, Richard) (from Munich) is no less associated with Vienna than that of such natives of Austria and the empire as Joseph Haydn (Haydn, Joseph), Wolfgang Amadeus Mozart (Mozart, Wolfgang Amadeus), Franz Schubert (Schubert, Franz), Anton Bruckner (Bruckner, Anton), Gustav Mahler (Mahler, Gustav), and Hugo Wolf (Wolf, Hugo). Much of the pioneer work in modern music was done by Arnold Schoenberg (Schoenberg, Arnold), Alban Berg (Berg, Alban), and Anton Webern (Webern, Anton), who are known collectively as the Second Viennese school. Vienna is also associated with two popular genres of music: the waltz and the operetta. Both forms find a common source in the person of Johann Strauss the Younger (Strauss, Johann, The Younger), who with his father, Johann the Elder (Strauss, Johann, The Elder), and his brothers, Josef and Eduard, constituted a virtual musical dynasty in the 19th century. The Viennese operetta, drawing heavily from the Slavic and Hungarian regions of the empire, reached its apogee about 1900, the prototypical composer being Franz Lehár (Lehár, Franz).

 The theatre has occupied a central position in the cultural life of Austria. The 19th-century Viennese playwrights Johann Nestroy (Nestroy, Johann), Franz Grillparzer (Grillparzer, Franz), and Ferdinand Raimund developed a drama with distinctly Austrian traits. The stage director Max Reinhardt (Reinhardt, Max), the writer Hugo von Hofmannsthal, and the composer Richard Strauss were instrumental in founding the Salzburg Festival in 1920.

      Literature in Austria had auspicious beginnings. The great epic of the German Middle Ages, the anonymous Nibelungenlied, was written in Austria. The most renowned Middle High German lyric poet, Walther Von Der Vogelweide, served at the Viennese court in the late 12th century.

      In the late 19th century, distinctly Austrian literary styles and mannerisms emerged. The writer Hermann Bahr (Bahr, Hermann) was associated with an era of literary impressionism, the expressly Austrian characteristics of which—a heightened self-consciousness and feelings of ambivalence and tentativeness—were coupled with forebodings of being at the end of an overripe civilization. Hugo von Hofmannsthal (Hofmannsthal, Hugo von), poet, dramatist, essayist, and librettist of six operas by Richard Strauss, and Arthur Schnitzler (Schnitzler, Arthur), whose dramas are thought to epitomize a hothouse Vienna at the turn of the 20th century, have best conveyed these sensibilities. Karl Kraus (Kraus, Karl), whose literary, political, and social criticism and satire contemplated an entire era in his review Die Fackel (1899–1936), focused on the importance of language. Coming from Prague to Vienna, Franz Kafka (Kafka, Franz), with his haunting works of the individual confronted with anonymous, unheeding power, has entered the canon of world literature.

      Robert Musil (Musil, Robert)'s unfinished novel Der Mann ohne Eigenschaften (1930–43; “The Man Without Qualities”) is said to be a metaphor for Austria itself. The Expressionist (Expressionism) poet Georg Trakl (Trakl, Georg) wrote elegiacally of decay and death. Franz Werfel (Werfel, Franz), another Expressionist, excelled as a poet, playwright, and novelist. Stefan Zweig (Zweig, Stefan), poet, dramatist, and story writer of imaginary and historical characters, was influenced by another Viennese, Sigmund Freud (Freud, Sigmund). Also writing in the first half of the 20th century were the Vienna-born philosopher Ludwig Wittgenstein (Wittgenstein, Ludwig) and innovative novelist Hermann Broch (Broch, Hermann).

 The novelist Heimito von Doderer (Doderer, Heimito von), who took an earlier Austria as his milieu, is a link between the vanished literary world of the pre-Anschluss years and the later 20th century. Austrian writers completed a number of works that won international attention in the second half of the 20th century; among them are Ilse Aichinger (Aichinger, Ilse), Ingeborg Bachmann (Bachmann, Ingeborg), Thomas Bernhard (Bernhard, Thomas), and Peter Handke (Handke, Peter). The Austrian novelist and playwright Elfriede Jelinek (Jelinek, Elfriede) won the Nobel Prize for Literature in 2004.

 In painting, a distinctly Viennese school developed in the movement known as the Vienna Secession (referring to its breakaway in 1897 from the academic painters of the Künstlerhaus), which was part of the Jugendstil, as Art Nouveau is known in the German regions. Led by Gustav Klimt (Klimt, Gustav), the movement tangentially involved a number of innovative architects, including Otto Wagner (Wagner, Otto), Adolf Loos (Loos, Adolf), and Josef Hoffmann (Hoffmann, Josef), who also helped found a cooperative enterprise for crafts and design called the Wiener Werkstätte (“Vienna Workshop”). Led by Klimt, a later group split from the Secession and held an exhibition known as the Kunstschau (“Art Show”); from this group emerged some of the most illustrious modern Austrian painters, including Oskar Kokoschka (Kokoschka, Oskar), Alfred Kubin (Kubin, Alfred), and Egon Schiele (Schiele, Egon).

      Among later 20th-century artists, the abstract paintings of Friedensreich Hundertwasser recall the Secession. The Vienna School of Fantastic Realism has leaned toward surrealism. Other groups have included Junge Wilde (“Young Wild Ones”), of whom Siegfried Anzinger has won acclaim abroad. In sculpture, which in the interwar years was dominated by Anton Hanak, the preeminent figure after 1945 was Fritz Wotruba (Wotruba, Fritz).

      Clemens Holzmeister, perhaps the best-known 20th-century Austrian architect, had considerable influence on modern church design and was responsible for the two major festival theatres in Salzburg. The designs of Adolf Loos (Loos, Adolf), Roland Rainer, Erich Boltenstern, and Carl Auböck had an impact on housing and office development. The avant-garde architecture firm Coop Himmelblau and architect Hans Hollein were well known in the late 20th and early 21st centuries.

      Moviemaking in Austria has tended to concentrate on highbrow or controversial themes. The German-language motion picture industry has not been able to keep pace with Hollywood imports, and foreign films and television shows outnumber Austrian or German productions. A number of 20th-century Austrian actors began their careers in Austria and later found success in Hollywood, including Paul Henreid (Henreid, Paul), Oscar Homolka (Homolka, Oscar), Hedy Lamarr (Lamarr, Hedy), and Maximilian Schell. Also born in Austria were the directors Erich von Stroheim (Stroheim, Erich von) and Otto Preminger (Preminger, Otto). Arnold Schwarzenegger (Schwarzenegger, Arnold), the Austrian-born bodybuilder, actor, and politician, is admired for his films and other accomplishments in the United States.

Cultural institutions
 The Vienna Philharmonic and the Vienna State Opera are Austria's premier musical institutions. Other groups of note have included the Austrian Radio Symphony, the Graz Philharmonic, the Linz Bruckner Orchestra, the Salzburg Mozarteum Orchestra, the Alban Berg Quartet, and the Concertus Musicus. The Vienna Boys' Choir, founded by the emperor Maximilian I in 1498, still sings at Sunday masses in the chapel of the Hofburg, or Imperial Palace.

      The stages of Vienna and Graz are considered among the finest in the German-speaking world and rank with such German-language theatre centres as Berlin, Munich, and Zürich. The high citadel of the Austrian theatre is Vienna's Burgtheater, in which the canon of German classical drama is performed by the leading actors of the German-speaking world. The Theater in der Josefstadt, also in Vienna, performs contemporary drama and German adaptations of foreign plays. All theatres are publicly subsidized.

      The great museums of Austria are gathered in Vienna. Its Kunsthistorisches Museum, with holdings extending from antiquity through the great German, Italian, and Dutch masters, contains one of the world's premier collections. The Austrian Gallery in Belvedere Palace exhibits Austrian art from the Middle Ages to the modern era. The Albertina Graphics Collection in Vienna is one of the world's finest collections of prints. In the Hofburg, the Collection of Secular and Ecclesiastical Treasures contains jewelry and regalia of the Holy Roman Empire and the Habsburgs. Modern collections are found in the Modern Art Museum and the Secession Museum. Collections of scientific, technical, and industrial interest are found in the Natural History Museum, the Austrian Museum of Applied Art, the Ethnological Museum, and the Technical Museum of Industry and Trade in Vienna.

      The oldest Austrian academic research institution is the Austrian Academy of Sciences, whose traditions date to the early 18th century. More modern scientific foundations, notably the Körner Foundation, support scientific research and other cultural endeavours; their main support comes from government sources. A federal ministry of science and research was established in 1970; it is responsible for university institutions and for the advancement of scientific activities.

Sports and recreation
      Austria's situation in the Alps means that outdoor winter sports are a favourite pastime. Known as the birthplace of downhill skiing, the country is littered with ski areas. Mountain climbing and hiking also are popular, and thousands of well-marked trails crisscross the Alps. Residents of the lowlands enjoy thousands of venues—swimming pools, stadiums, riding arenas, bicycle paths, and other facilities—for a wide range of sports. Eastern Austria's rivers and lakes attract countless swimmers and boaters in the warmer months and skaters in winter.

      Austria has sent teams to every Olympic Games since 1896, except the 1920 Games in Antwerp, Belg. The country hosted the Winter Games in 1964 and 1976, both times in the Alpine city of Innsbruck. At Innsbruck in 1976, a young Austrian skier, Franz Klammer (Klammer, Franz), set a world record for the men's downhill event. Since Klammer's time many other Austrian Olympians—among them the skiers Mario Reiter, Petra Kronberger, Günther Mader, Anita Wachter, and Hermann Maier—have continued the country's tradition of athletic excellence.

Media and publishing
      Austria has several major independent newspapers, including three major dailies in Vienna, Neue Kronen-Zeitung, Kurier, and Die Presse. The leading provincial newspaper is Salzburger Nachrichten. Until the turn of the 21st century, radio and television were the monopoly of the Österreichischer Rundfunk (ORF), a state-owned corporation that enjoys political and economic independence. Several private local and regional radio stations have been licensed, although ORF still operates the country's main radio stations. ORF also operates a number of television channels.

Otto Leichter Karl R. Stadler George Hall Kirby Lutz Holzner


Prehistory and Roman times
      In the territories of Austria, the first traces of human settlement date from the Lower Paleolithic Period (Old Stone Age). In 1991 a frozen human body dating from the Neolithic Period (New Stone Age) was discovered at the Hauslabjoch pass in the Ötztal Alps, on the Italian-Austrian border. At 5,300 years old, the so-called Iceman, nicknamed Ötzi, was the oldest intact mummy ever discovered. The archaeological material becomes richer and more varied for subsequent periods, giving evidence of several distinct cultures succeeding one another or coexisting. The Austrian site of Hallstatt gave its name to the principal culture of the Early Iron Age (c. 1100–450 BC). Celtic tribes invaded the eastern Alps about 400 BC and eventually founded the kingdom of Noricum, the first “state” on Austrian territory known by name. In the west, however, the ancient Raetian people were able to maintain their seat (see Raetian language). Then, attracted by the rich iron resources and the strategic importance of the region, the Romans began to assert themselves. After an initially peaceful penetration during the last two centuries BC, Roman troops finally occupied the country about 15 BC, and the lands as far as the Danube River became part of the Roman Empire (ancient Rome), being allotted to the Roman provinces of Raetia, Noricum, and Pannonia. (See also ancient Rome.)

      The Romans opened up the country by an extensive system of roads. Among the Roman towns along the Danube (Danube River), Carnuntum (near Hainburg) took precedence over Vindobona ( Vienna), while Lauriacum (Lorch; near the confluence of the Enns River and the Danube) belonged to a later period. Roman municipalities (municipia) also grew up at Brigantium ( Bregenz), Juvavum ( Salzburg), Ovilava ( Wels), Virunum (near Klagenfurt), Teurnia (near Spittal), and Flavia Solva (near Leibnitz). North of the Danube the Germanic (Germanic peoples) tribes of the Naristi, Marcomanni, and Quadi settled. Their invasions in AD 166–180 arrested the peaceful development of the provinces, and, even after their repulse by the emperor Marcus Aurelius, the country could not regain its former prosperity. In the 3rd century the Roman frontier defenses began to be hard-pressed by invasions from the Alemanni. Finally, in the 5th century, heavy attacks by the Huns (Hun) and the eastern Germans put an end to the Roman provincial defense system on the Danube.

      There is archaeological evidence of a Christian (Christianity) cult in this area from the 4th century, and the biography of St. Severinus by Eugippius constitutes a unique literary source for the dramatic events of the second half of the 5th century. At that time several Germanic tribes (the Rugii, Goths (Goth), Heruli, and, later, Langobardi (Lombard)) settled on Austrian territory. In 488 part of the harassed Norican population was forced to withdraw to Italy.

Early Middle Ages
Germanic and Slavic settlement
      Following the departure of the Langobardi to Italy (568), further development was determined by the Bavarians in a struggle with the Slavs (Slav), who were invading from the east, and by the Alemanni, who settled in what is now Vorarlberg. The Bavarians were under the political influence of the Franks (Frank), whereas the Slavs had Avar rulers. At the time of their greatest expansion, the Slavs had penetrated as far as Niederösterreich (Lower Austria), Steiermark (Styria), Kärnten (Carinthia), and eastern Tirol. After 624 the western Slavs rose against the Avars under the leadership of the Frankish merchant Samo, whose short-lived rule may also have extended over the territories of the eastern Alps. About 700 the Bavarian lands again bordered on Avar territory, with the lower course of the Enns forming the approximate frontier. On the death of the Frankish king Dagobert I (639), the Bavarian dukes from the house of Agilolfing became virtually independent.

      Christianity had survived only here and there among the remnants of the Roman population when, about 600 and again about 700, Christian missionaries from the west became active, with the support of the Bavarian dukes. At the end of the 7th century, St. Rupert, who came from the Rhine, founded the church of Salzburg. When they were threatened once more by the Avars, the Alpine Slavs (Karantani) placed themselves (before 750) under the protection of the Bavarians, whose mission was extended to them. At the same time, Bavarian settlers penetrated into the valleys of Kärnten and Steiermark. Charlemagne, emperor of the neighbouring Franks, however, deposed the Bavarian duke Tassilo III, wiping out the Bavarian dukedom for a century. During the following years (791–796), Charlemagne led a number of attacks against the Avars and destroyed their dominion. Surviving Avars were made to settle in the eastern part of Lower Austria between the rivers of Fischa and Leitha, where they soon disappeared from history, most probably mixing with the native population.

      As was the usual Frankish practice, border provinces (Marken, or marches) were instituted in the newly won southeastern territories. The Avar March on the Danube and Lower and Upper Pannonia and Karantania were to form a border fortification, but this arrangement soon became less effective because of frequent disagreements among the nobility. To that unrest was added a threat from the Bulgarians (Bulgar) and from the rulers of Great Moravia (see Moravia). Nevertheless, the process of Germanization and Christianization continued, during the course of which the churches of Salzburg and Passau came into conflict with the eastern mission, which was led by the Slav apostles Cyril and Methodius (Cyril and Methodius, Saints). The Frankish kingdom richly endowed the church and nobility with new lands, which came to be settled by Bavarian and Frankish farmers.

      In 881 the beginning of incursions by the Magyars (Hungarian) led to a first clash near Vienna. By 906 they had destroyed Great Moravia, and in 907 near Pressburg ( Bratislava, Slvk.) the Magyars defeated a large Bavarian army that had tried to win back lost territory. Liutpold of Bavaria as well as Theotmar, the archbishop of Salzburg, were killed in battle. The Lower Austrian territories as far as the Enns River, and Steiermark as far as the Koralpe massif, fell under Magyar domination. Nevertheless, a certain continuity of German-Slav settlement was maintained so that, after the victory of the German king Otto I (later Holy Roman emperor) in 955 and the further repulse of the Magyars in the 960s, a fresh start could be made. (See also Germany: History (Germany); Holy Roman Empire.)

Early Babenberg (Babenberg, House of) period
      The first mention of a ruler in the regained territories east of the Enns is of Burchard, who probably was count (burgrave) of Regensburg. It appears that he lost his office as a result of his championship of Henry II the Quarrelsome, duke of Bavaria. In 976 his successor, Leopold I of the house of Babenberg (Babenberg, House of), was installed in office. Under Leopold's rule the eastern frontier was extended to the Vienna Woods after a war with the Magyars. Under his successor, Henry I, the country around Vienna itself must have come into German hands. New marches were also created in what were later known as Carniola and Steiermark.

      Wars against Hungarians and Moravians (Moravia) occupied the reign (1018–55) of Margrave (a count who ruled over a march) Adalbert. Parts of Lower Austria on both sides of the Danube were lost temporarily; after they were retaken, they became the so-called Neumark (New March), which for some time enjoyed independence—as did the Bohemian (Bohemia) March to the north of the Babenberg territories. The position of the Babenbergs was at that time still a modest one; their territorial rights were no greater than those of other leading noble families. Their power within their own official sphere was further diminished by ecclesiastical immunities (Passau in particular but also Salzburg, Regensburg, and Freising), with numerous monasteries owning large territories as well.

      Austria was repeatedly drawn into the disputes of the Investiture Controversy, in which Pope (papacy) Gregory VII (Gregory VII, Saint) and King Henry IV (later Holy Roman emperor) fought for control of the church (Holy Roman Empire) in Germany. In 1075 Margrave Ernest, who had regained the Neumark and the Bohemian March for his family, was killed in the Battle of the Unstrut, fighting on the side of Henry IV against the rebellious Saxons (Saxon). Altmann, bishop of Passau, a leader of church reform and a champion of Gregory VII, influenced the next Babenberg margrave, Leopold II, to abandon Henry's cause. As a result, Henry roused the Bohemian duke Vratislav II against him, and in 1082 Leopold II was defeated near Mailberg, his territories north of the Danube devastated. The Babenbergs, however, managed to survive these setbacks. Meanwhile, the cause of church reform gained ground, with its centres in the newly founded monasteries of Göttweig, Lambach, and, in Steiermark, Admont.

      Under Leopold III (1095–1136) the history of the Babenbergs reached its first culmination point. In the struggle between emperor and pope, Leopold avoided taking sides until a consensus had built up among the German princes that it was Emperor Henry IV who stood in the way of a final settlement. Then Leopold did not hesitate to side with Henry's rebellious son, Henry V, in 1106. For this he was rewarded with the hand of Henry V's sister Agnes, who had formerly been married to the Hohenstaufen (Hohenstaufen dynasty) Frederick I of Swabia. The intermarriage with the reigning dynasty not only increased Leopold's reputation but also no doubt brought him additional power. Leopold was even proposed as a candidate to the royal throne, but he declined. It was apparently his intention to concentrate on consolidating his position in Austria. He was the first Austrian margrave to describe himself as the holder of territorial principality (principatus terrae), and during his time Austrian common law was mentioned for the first time, another proof of the developing national consciousness.

      Leopold's reputation with the clergy was high, and he was eventually canonized (1485). He gave generous endowments to religious communities, establishing the Cistercians at Heiligenkreuz, and he founded, or at least restored, the monastery of Klosterneuburg, which he then gave to Augustinian canons. In Klosterneuburg he built a residence in which he stayed even after he had acquired Vienna.

      On the death of Leopold III, the Babenbergs were drawn into a conflict between the two leading dynasties of Germany, the Hohenstaufen (Hohenstaufen dynasty) and the Welfs (Welf Dynasty); the Babenbergs took the side of the Hohenstaufen because of their family ties. In 1139 the German king Conrad III bestowed Bavaria, which he had wrested from the Welfs, on his half brother, Leopold IV. After the latter's untimely death, Henry II Jasomirgott succeeded to the rule of Austria and Bavaria.

      The Holy Roman emperor Frederick I (Barbarossa) tried to put an end to the quarrel between the Welfs and the Hohenstaufen, and, in the autumn of 1156 at Regensburg, he arranged a compromise. Bavaria was restored to the Welf Henry III (the Lion), duke of Saxony, while the Babenbergs were confirmed in their rule of Austria, which was made a duchy, and were given the “three counties,” the actual location of which is disputed. Also, the obligations of the dukes of Austria toward the empire were reduced. Their attendance at royal court days was called for only when court was held in Bavaria, and they were compelled to participate only in campaigns of the empire that were directed against Austria's neighbour—that is, Hungary. Henry II Jasomirgott and his wife, Theodora, a Byzantine princess, were granted succession through the female line and the right, in the event of the premature deaths of their children, to appoint a candidate for the succession. The Babenbergs also were given the right of approving the exercise of jurisdiction by other powers within the new duchy, permitting Henry to exert pressure against rival internal powers, secular as well as ecclesiastical. The rights of the duke were laid down by imperial charter (Privilegium Minus). For centuries, however, Austria continued to contain territorial dominions not ruled by the duke. Henry moved his residence to Vienna, where he also founded the monastery of the “Scottish” (actually Irish) monks.

Later Babenberg period
      In 1192 the Babenbergs' territory was greatly extended when they won the duchy of Steiermark. In Steiermark the margraves of the family of the Otakars of Steyr had gradually asserted themselves—under conditions similar to those of the Babenbergs—over their rivals, the noble families of the Eppensteiner, Formbacher, and Aribonen. The most successful among Steiermark's margraves was Otakar III (reigned 1130–63). Then, in 1180, Emperor Frederick I, in the course of a renewed anti-Welf policy, raised Steiermark to the status of a duchy and granted it complete independence from Bavaria. A few years later a treaty of inheritance (Georgenberg; 1186) was concluded between the dukes Leopold V of Austria (reigned 1177–94), a son of Henry II Jasomirgott, and Otakar IV of Steiermark, the ailing last Otakar ruler. When Otakar died in 1192, Leopold succeeded him, and thus the Babenbergs came into the inheritance.

      Except for a short intermission (1194–98), the reigning Babenberg thereafter ruled both duchies, Austria and Steiermark. Steiermark then included parts of the Traungau, which eventually was to become part of Upper Austria, and the province of Pitten, north of the Semmering Alpine pass, afterward assigned to Lower Austria. In logical continuation of the Babenberg policy, Leopold VI (the Glorious) and his successor, Frederick II (the Warlike), the last representative of the dynasty, extended their domains farther south, gaining fiefs in Carniola.

      Before he inherited the duchy of Steiermark, Leopold V had taken part in the Third Crusade (Crusades), during which, on the ramparts of Acre (modern Akkoʿ, Israel), he became involved in a quarrel with the English king Richard I (the Lion-Heart). Later, on his return journey to England, Richard tried to make his way through Austria in disguise but was recognized near Vienna, taken prisoner, and later handed over to the Holy Roman emperor Henry VI. England had to pay a heavy ransom, a share of which Leopold obtained and invested in the foundation, extension, and fortification of towns as well as in the stamping of a new coin, the so-called Wiener pfennig. The road connecting Vienna and Steiermark was improved, and the new town of Wiener Neustadt was established on its course to protect the newly opened route across the Semmering.

      On Leopold V's death the Babenberg domains were divided between his sons for four years, until the death of one of them, Frederick I, in 1198. His brother Leopold VI, the most outstanding member of the family, then took over as sole ruler (1198–1230). This was a time of great prosperity for the Babenberg countries. In imperial politics Leopold VI again took sides with the Hohenstaufen, backing Philip of Swabia. In church matters he was a great supporter of the monasteries, founding a Cistercian monastery at Lilienfeld (c. 1206). He tried to concentrate patronage rights over ecclesiastical property in his own hands and took rigorous action against the heretics (the Cathari and Waldenses). He participated in several crusades in Palestine, Egypt, southern France (against the Albigenses), and Spain (against the Saracens (Saracen)). Leopold VI's efforts to emancipate Austria ecclesiastically by creating a separate Austrian bishopric in Vienna came to naught because of the opposition of the church in Passau and also in Salzburg; nor did his son Frederick II succeed in the same matter. Leopold VI played some role in imperial politics, bringing about the Treaty of San Germano between the Holy Roman emperor Frederick II and Pope Gregory IX (1230). He met his death in San Germano (now Cassino, Italy), and his body was transported to Lilienfeld for burial.

      A change came about under the last representative of the dynasty, Frederick the Warlike, Leopold's son. His harsh internal policy and military excursions against neighbouring lands, together with his opposition to the emperor Frederick II, led in 1237 to the temporary loss of both Austria and Steiermark. The crisis, however, was overcome, and fresh opportunities were about to open for the duke when, on June 15, 1246, he was killed in battle against the Hungarians on the Leitha River. With him the male line of the family came to an end.

      The political history of Austria from the end of the 10th century to the middle of the 13th is marked by the establishment and consolidation of territories. This process was most advanced in the Babenberg domains but was not confined to them. Dukes Herman (1144–61) and Bernhard (1202–56) of Kärnten achieved a comparable status, and Count Albert of Tirol (died 1253) moved in the same direction. The archbishops of Salzburg strove to eliminate all secular powers and patrons of their see, but, in the other territories, secular princes strengthened their rule.

      Another milestone of this period was the completion of the colonization of the Austrian territories. New settlements were established by clearing the woods and advancing to more remote mountain areas. Several old and new settlements grew into market centres and towns and were eventually granted charters. The colonization movement also affected the ratio of the German to non-German population. Except for some places in the Alpine regions, the Slavs were gradually assimilated, and the same held true of the remnants of the Roman population in Salzburg and northern Tirol.

      The intellectual life of the period deserves mention. The Babenberg court was famous enough to attract some of the leading German poets. At the beginning of the 13th century, the saga known as the Nibelungenlied was written down by an unknown Austrian. Historical writing flourished in the monasteries. The era also produced first-rate Romanesque and early Gothic architecture.

Late Middle Ages
Contest for the Babenberg heritage
      Upon the death of Frederick the Warlike, the Babenberg domains became the political objects of aspiring neighbours. The emperor and the pope also tried to intervene. Two female descendants of the Babenbergs, Frederick's niece Gertrude and his sister Margaret, were considered to embody the claims to the heritage. Gertrude married first the Bohemian prince Vladislav and afterward the margrave Hermann of Baden, who died in 1250. After Hermann's death, Otakar II, prince of Bohemia (from 1253 king) and a member of the house of Přemysl (Přemysl, house of), married the widowed Margaret. Thereupon Hungarian forces intervened. Under the Treaty of Ofen (1254) Otakar was to rule Austria, while King Béla IV of Hungary received Steiermark. Troubles in Salzburg, stemming from a conflict between Bohemia and Hungary, inspired a rising among Steiermark's nobles. Otakar intervened and in the Treaty of Vienna (1260) took over Steiermark as well. The state of anarchy that prevailed in Germany during this period proved advantageous to Otakar, who was granted Austria and Steiermark in fief from Richard, earl of Cornwall, the titular German king. The grant, however, was only by writ and was invalid according to German law. During the following years, Otakar's energetic rule met with growing opposition among the Austrian nobility. He introduced foreigners into important official positions, broke fortresses that had been erected without his consent, and dissolved his childless marriage with Margaret. Otakar had two of the opposition leaders, Otto of Meissau and Seifried of Mahrenberg, executed. The gentry and the inhabitants of the cities, on the other hand, generally favoured Otakar, who supported the churches and monasteries. To complete his success, Otakar gained Kärnten and Carniola, which Ulrich of Spanheim, duke of Kärnten, willed to him in 1269.

      Reverses came only when Count Rudolf (Rudolf I) IV of the house of Habsburg (Habsburg, House of) was elected German king as Rudolf I on Sept. 29, 1273. Cautiously but nevertheless energetically, Rudolf set out to undermine the powerful position Otakar had created for himself. He challenged the legitimacy of Otakar's acquisitions and finally placed the Bohemian king under the ban of the empire. In 1276 Rudolf and his allies invaded Austria, forcing Otakar to do homage and to renounce his claims to Austria. Two years later, while trying to recover what he had lost, Otakar was defeated by the united forces of Rudolf and the Hungarians and was killed on the battlefield near Dürnkrut (Aug. 26, 1278).

Accession of the Habsburgs (Habsburg, House of)
      As the German princes had not cared to give Rudolf adequate support against Otakar, he did not feel bound to them and set out to acquire the former Babenberg lands for his own house. In 1281 he made his eldest son, Albert (later Albert I, king of Germany), governor of Austria and Steiermark; on Christmas, 1282, he invested his two sons, Albert and Rudolf II, with Austria, Steiermark, and Carniola, which they were to rule jointly and undivided. As the Austrians were not used to being governed by two sovereigns at the same time, the Treaty of Rheinfelden (June 1, 1283) provided that Duke Albert should be the sole ruler. In 1282 Carniola had already been pawned to Meinhard II of Tirol (of the counts of Gorizia), one of the most reliable allies of Rudolf who, in 1286, was also invested with Kärnten.

      At first the Habsburg rulers were far from popular in Austria. Albert's energetic and relentless rule aroused bad feeling, and the Swabian entourage that had arrived with the new dynasty to occupy key positions was despised by native nobles. There were conflicts with Bavaria, Salzburg, and Hungarian nobles who violated the Austrian frontier. After the death of King Rudolf (1291), all the neighbours and rivals of the Habsburgs and the counts of Gorizia united. Albert, however, succeeded in negotiating a peace with his most dangerous foes, the Hungarians and the Bohemians, and he broke the fortresses of the rebel nobility. Meanwhile, Meinhard II had stifled the uprising in Kärnten.

      In 1292 Albert was passed over in the German election, and Adolf of Nassau was called to the throne. When Adolf fell out with the electoral princes, however, they went over to Albert, who had just subdued another rebellion in Austria. After Adolf was defeated and killed near Göllheim (1298), Albert had himself elected a second time. In his Austrian lands Albert's main concern was to provide for an effective administration, in which he was assisted by his privy councillors, most of whom were foreign. Records were set up to codify the prerogatives and returns of the ducal property. Eventually Albert did not spare the church, either. When the Přemysl family died out in 1306, Albert aspired to the Bohemian throne. He had his eldest son, Rudolf III, elected Bohemian king, but Rudolf died the following year. Albert was preparing for a new campaign when he was murdered by his nephew John and some accomplices in 1308.

      On Albert's death the anti-Habsburg movement flared up again in Austria, but his sons, Frederick I (the Fair) and Leopold I, managed to maintain control. Frederick stood for election as German king (as Frederick III (Frederick (III))), and for the next several years the Habsburg countries had to support the cost of the war with his rival, Louis IV of Bavaria, until 1322, when Frederick was defeated near Mühldorf. Earlier, another decisive battle had been lost by the Habsburgs to the Swiss at Morgarten (Morgarten, Battle of) in 1315. From that time on, the Habsburg domains in the territory south of the Rhine (Rhine River) and Lake Constance (Constance, Lake) began to crumble away. Frederick the Fair spent his last years in Austria and was buried in the Carthusian monastery of Mauerbach (1330). He seems to have been the first of the Habsburgs for whom Austria meant home. From his time on, Habsburg rule and Habsburg territories were known as the Austrian domains (dominium Austriae), a term that was replaced, in the course of the 14th and 15th centuries, by the new concept of the house of Austria.

      After Frederick's death the Habsburgs were for some time ruled out as possible candidates for the German throne; but, under the brothers Albert II and Otto, Habsburg Austria received its first important accession of territory. In 1335 Kärnten and Carniola were acquired after the death of Henry of Gorizia, while, with the help of Luxembourg troops, Henry's daughter Margaret Maultasch managed to retain the Tirol. Albert and his brother Otto had not gotten on too well, but, when Albert came to rule on his own, he proved to be of sound judgment and keen on preserving the peace. It was a time of calamities: bad harvests, floods, earthquakes, and in 1348–49 the plague, which brought a persecution of the Jews (Jew); this was suppressed, however, by the duke. Albert arranged several tours around his domains to establish contacts with the populace and to improve jurisdiction. Two campaigns against the Swiss failed to yield any spectacular results, but they helped to consolidate the weakened Habsburg position. At his death in 1358 Albert left four sons. Though in 1355 a family ordinance had decreed that all the male members of the family were to rule jointly over the undivided domains, only the eldest of them, Rudolf, was then fit to rule. Throughout his short reign (1358–65), Rudolf IV showed himself extremely energetic and ambitious. He started to rebuild St. Stephen's Cathedral in the Gothic style, and he founded the University of Vienna (Vienna, University of) (1365). With these two projects, he imitated and rivaled his father-in-law, the Holy Roman emperor Charles IV, at Prague.

      In 1359 Rudolf's forged charter, the Privilegium Majus, by which he claimed immense privileges for Austria and its dynasty, as well as the title of archduke, caused a breach between him and the emperor Charles IV. Charles was not prepared to accept the Privilegium Majus to its full extent (although it later was sanctioned by Frederick III, the Habsburg king of Germany and, from 1452, Holy Roman emperor, in 1442 and again in 1453). Upon news of the death of Margaret Maultasch's son, Duke Meinhard, in 1363, Rudolf prevailed upon Margaret to make over the Tirol to him. On this occasion the emperor backed the Habsburgs against the rulers of Bavaria, the Wittelsbachs (Wittelsbach, House of), and the Tirol thus passed to the house of Austria.

Division of the Habsburg lands
      Rudolf was succeeded in 1365 by his two brothers, Albert III and Leopold III. After some years of joint rule, however, they quarreled and in 1379, by the Treaty of Neuberg, partitioned the family lands. Albert, as the elder brother, received the more prosperous countries on the Danube (Upper and Lower Austria). The rest of the widespread domains fell to Leopold (including Steiermark, Kärnten, Tirol, the old Habsburg countries in the west, and central Istria). The treaty also contained several points on mutual wardship, preemption rights, and common titles, by which some connection between the two lines was to be preserved.

      In 1382 the resourceful duke Leopold took advantage of the weak position of Venice in its war with Genoa and seized Trieste, which had broken away from Venice. His efforts to expand his rule in the west, however, were less successful, though he seemed lucky enough at first. Envisaging a connection between the original Habsburg territories in the west and the new domains in the Tirol, the Habsburgs looked for a foothold in the region west of the Arlberg (modern Vorarlberg). Neuberg on the Rhine was won in 1363 and Feldkirch in 1375. Another important acquisition was the city of Freiburg (Freiburg im Breisgau) in the Breisgau region. But then Leopold came into conflict with the Swiss, which led to defeat and his death in the Battle of Sempach (Sempach, Battle of) in 1386. An army of his brother, Albert III, was likewise defeated in the Battle of Näfels (Näfels, Battle of) in 1388, and the Habsburgs suffered heavy territorial losses. Leopold's sons recognized the wardship of Albert, who acquired Bludenz and the Montafon Valley west of the Arlberg in 1394. In his own domains Albert was forced to check the dynasty of the Schaunbergs (in Upper Austria), who tried to create an independent domain around Peuerbach and Eferding. Albert III especially favoured the city of Vienna as his capital, and it was because of his reorganization that the university Rudolf IV had founded there was able to survive.

      After Albert's death in 1395, new Habsburg family troubles arose, differences that the treaties of Hollenburg (1395) and Vienna (1396) tried to settle. Under the Vienna treaty, the line of Leopold III split into two branches, resulting in three complexes of Austrian territories—a state of affairs that was to reappear in the 16th century. The individual parts came to be known by the names of Niederösterreich (“Lower Austria,” comprising modern Lower and Upper Austria), Innerösterreich (“Inner Austria,” comprising Steiermark, Kärnten, Carniola, and the Adriatic possessions), and Oberösterreich (“Upper Austria,” comprising the Tirol and the western domains, known as the Vorlande, or Vorderösterreich [the Austrian provinces west of the Arlberg]).

      In 1396 the Austrian estates, or diets, were first assembled to consider the Turkish threat; thereafter they were to play an important political role in Austria. In them the nobility usually took the lead, but they also included representatives of the monasteries, towns, and marketplaces. In the Tirol, in Vorarlberg, and, at times, in Salzburg, the peasants also sent their representatives to attend the diets. Because of the Habsburg partitions and frequent regencies, the estates were able to gain in importance. They did not obtain the right to pass laws, but they obstinately insisted on the privilege to grant taxes and duties.

      After the short rule of Albert IV (1395–1404) and a troublesome tutelary regime (1404–11), Albert V (Albert II) came into his own, and with him the Danube countries again enjoyed a strong and energetic rule (1411–39). Albert, however, had married the daughter of the Holy Roman emperor Sigismund and was thus drawn into the Hussite religious wars, in the course of which the Austrian lands north of the Danube were ravaged. In the Austrian west, Duke Frederick IV of the Tirolean branch lost the Aargau to the Swiss but was able to assert himself in Tirol against a rebellion of his nobles.

      When Sigismund died, Albert inherited his positions. In 1438 he was elected Hungarian king, with the German (as Albert II) and the Bohemian crowns to follow later. Albert no doubt had many of the qualities of a born ruler, but he died prematurely in 1439 on an unsuccessful campaign against the Turks. Soon thereafter his widow gave birth to a son and heir, Ladislas Posthumus (Ladislas V), to whom Frederick V of Steiermark, as the senior member of the house, became guardian. Frederick also had Sigismund, the son of Frederick IV of Tirol, under his tutelage.

      Thus began the long reign of Frederick V (as Holy Roman emperor he was to become Frederick III). His reign was marked by almost ceaseless strife with the estates, with his neighbours, and with his jealous family. When he tried unsuccessfully to take advantage of a conflict between the Swiss Confederates, the Tiroleans made Frederick release Duke Sigismund from tutelage (1446). In 1452, on his return from Rome, where he had been crowned emperor, his enemies at home and abroad forced him also to give up Ladislas, who was then the recognized king (as Ladislas V) of Hungary and Bohemia. The boy king's policies were made by Count Ulrich of Cilli. Ulrich was murdered at Belgrade, Serb., in 1456, however, and a year later King Ladislas died. In Bohemia and Hungary, national kings came to power. Frederick now won himself a foothold in the Austrian domains on the Danube and succeeded in acquiring the rich estates and fiefs of Ulrich.

Burgundian and Spanish marriages
       Maximilian I, the son of the emperor Frederick III, was married to the Burgundian heiress, Mary, at Ghent in 1477. By that tie to Burgundy, the Habsburgs became involved in long struggles with France. After Mary's death (1482), Maximilian, moreover, met with increasing difficulties in the Burgundian countries themselves. Meanwhile, another crisis had arisen in the eastern Habsburg domains. Disagreement about the Bohemian succession and a political error of Frederick III, who tried to install the former archbishop of Gran (now Esztergom, Hung.) at Salzburg, led Matthias I of Hungary to march against Austria. Vienna was besieged and finally taken by the Hungarians (1485), as was Wiener Neustadt (1487). The harried Maximilian came into even greater distress in the Low Countries, where the rebellious citizens of Brugge put him under arrest (1488). Sigismund, the Habsburg ruler of the Tirol, who was heavily encumbered by debts, planned to sell his country to the Bavarians. A complete breakdown of the house of Habsburg threatened, but Maximilian was ultimately released. He prevailed upon Sigismund to abdicate in his favour. In 1490 the Habsburgs were able to take over Lower Austria. Maximilian even attacked Hungary, but, in the Treaty of Pressburg (1491), he renounced claims to that country, though reserving his family's succession rights.

      After the death of his father, Emperor Frederick III, Maximilian came into a heritage that surpassed the endowments of all his predecessors. Furthermore, his son, Philip I (the Handsome), who governed the Low Countries, was betrothed to the Spanish infanta Juana (later called Joan the Mad), and, through the unexpected deaths of male members of the Spanish dynasty, this marriage was to raise the Habsburgs to the throne of Spain. In the German empire as well as in Austria, Maximilian introduced sweeping administrative reforms that were the first steps toward a centralized administration. In 1508 Maximilian assumed the title of elected emperor, as he was unable to pass through hostile Venetian territory to go to Rome for his coronation, and henceforth Rome and the pope had no more say in the creation of new Holy Roman emperors.

      During Maximilian's last years, eastern politics again came to the fore. The great crusade he planned against the Turks, however, never materialized. In 1515 Maximilian arranged a double marriage between his family and the Jagiellon (Jagiellon dynasty) line that ruled Bohemia and Hungary, thus reviving earlier Habsburg claims to these countries. Maximilian's energetic reign added greatly to the prestige of the Habsburgs. Thus, his grandson Charles V was able to prevail against French opposition to inherit the imperial crown. Charles's younger brother, Ferdinand I, took over the rule of the Austrian countries but encountered the opposition of the estates, which he cruelly suppressed. In the agreements of Worms (1521) and Brussels (1522), Charles V formally handed over the Austrian lands to his brother. The subsequent years of Ferdinand's reign were troubled by peasant risings in the Tirol and in Salzburg, which were followed by similar upheavals in Inner Austria.

      In the late medieval period, the Alpine lands were assembled by the Habsburgs into a monarchical union roughly comprising the territory of the modern Austrian state. The process of union was at times intercepted and hindered by the partitions among the dynasty. When the process was finished, however, the territories retained their individuality and their own legal codes. During this period the towns developed and prospered, but in the rural settlements a backward tendency had set in. Many settlements were abandoned, especially in Lower Austria. The leading classes lost interest in rural colonization as they found other and more-lucrative sources of income. Mining developed, but trade was impaired by political instability.

      Until about 1450 the University of Vienna (Vienna, University of) enjoyed some fame in the fields of theology and science. The literary culture of Austria was characterized by remarkable works, among them the rhyming chronicle of Otakar aus der Geul, the work of the abbot John of Viktring, the poetry of Oswald of Wolkenstein, and the works of the theologian and historian Thomas Ebendorfer. From the middle of the 15th century onward, Austria came under the influence of Italian humanism.

Reformation and Counter-Reformation
Acquisition of Bohemia
      The year 1526 saw the defeat and death of the Jagiellon king of Hungary and Bohemia, Louis II, who fell in the Battle of Mohács (Mohács, Battle of) against the Turks. In view of the treaties of 1491 and 1515, Ferdinand I and the Vienna court envisaged Hungary and Bohemia and the adjoining countries falling to the Habsburgs. Thus, the union of Austria, Bohemia, and Hungary became the leading concept of Habsburg politics. After clever diplomatic overtures, Ferdinand was elected king of Bohemia (Oct. 23, 1526). In Hungary, however, there was a split election; John (János Zápolya), voivode (governor) of Transylvania, was chosen by an opposition party, whereupon war broke out between the two candidates.

      Ferdinand's troops in Hungary would have been in a stronger position had John not been assisted by the Turks under Süleyman I, sultan of the Ottoman Empire. In 1529 the Turks (Ottoman Empire) advanced as far as Vienna, which they besieged in vain. Another Turkish offensive came to a halt at Güns in western Hungary in 1532. Ferdinand, on the other hand, failed in his attempt to take Ofen (Hungarian: ), where the Turks had entrenched themselves. By about the middle of the century, the frontiers had become fixed. Hungary happened to be divided into three parts: the west and the north remained with the Habsburgs, the central part came under Turkish rule, and Transylvania and its adjoining territory were kept by John and his successors. This situation was anticipated in the truce of 1547 and became formalized in the Peace of Constantinople (1562).

      During a short truce in the fighting against John and the Turks, Ferdinand started to reorganize Austrian administration. In 1527 he created new central organs: the Privy Council (Geheimer Rat), for foreign affairs and dynastic matters; the Court Council (Hofrat), as the supreme legal authority; the Court Chancery (Hofkanzlei), which served as the central office and only later dealt with internal affairs; and the Court Treasury (Hofkammer), for finance and budgeting. As the Court Treasury proved inefficient in the financing of the Turkish war, the Court Council of War (Hofkriegsrat) was established in 1556 to take care of the pay, equipment, and supplies of the troops, acquiring some influence on military operations as well.

Advance of Protestantism
      The Protestant movement gained ground rapidly in Austria. The nobility in particular turned toward the Lutheran (Lutheranism) creed. For generations eminent families provided the protagonists of Protestantism in the Lower and Inner Austrian territories. The sons of the nobility were often sent to North German universities to expose them more fully to Protestant influence. From 1521, Protestant pamphlets were produced by Austrian printers. Bans on them, issued from 1523 onward, remained ineffective.

      Among the peasant population, the Anabaptists (Anabaptist) had a stronger appeal than the Lutherans. However, as they had no support from the estates and because of their radicalism, the Anabaptists were persecuted from the start. In 1528 Balthasar Hubmaier (Hubmaier, Balthasar), their leader in the Danube countries and in southern Moravia, was burned at the stake in Vienna. In 1536 another Anabaptist, the Tirolean Jakob Hutter, was burned at the stake in Innsbruck after he had led many of his followers into Moravia (see Hutterite). Ferdinand, for his part, advocated religious reconciliation and looked for means to achieve it, but the dogmatic viewpoints proved irreconcilable. The Peace of Augsburg (Augsburg, Peace of) (1555) finally brought some respite in the religious struggles.

      Charles V abdicated in 1556, and in 1558 Ferdinand I became Holy Roman emperor; thus, the leadership of the empire was taken over by the Austrian (German) line of the Habsburgs. Maximilian II, the eldest son, followed his father in Bohemia, Hungary, and the Austrian Danube territories (1564). The next son, Ferdinand, was endowed with Tirol and the Vorlande; Charles, the youngest of the brothers, received the Inner Austrian lands and took up residence in Graz. Maximilian was known for his Protestant leanings but was bound by a promise he had given his father to remain true to the Roman Catholic religion. The Protestants were therefore granted fewer concessions from him than they might have expected.

      Meanwhile, Catholic counteractivity began, with the Jesuits (Jesuit) particularly prominent in Vienna, Graz, and Innsbruck. A new generation of energetic bishops proved a great asset to the cause. It was also of some importance that the monasteries, though they had been deserted by many of their members and were struggling for existence, had not been secularized. On the Protestant side, it proved impossible to reconcile the various reforming movements. Social differences between them, especially between the nobility and the peasants, also stood in the way of a united Protestant front. The Counter-Reformation scored its first successes in Gorizia and Carniola, where Protestantism had remained insignificant. And, in other parts, official religious commissions started to replace the Protestant preachers with Catholic clergymen.

Rudolf II and Matthias
      Maximilian's successor as Holy Roman emperor and as archduke of Austria, his son Rudolf II (reigned 1576–1612), had been educated in Spain strictly in the Catholic faith. He had all Protestants dismissed from court service. The conversion of the cities and market centres of Lower Austria to Catholicism was conducted by Melchior Klesl (Klesl, Melchior), at that time administrator of the Vienna see but later to become bishop and cardinal. In Upper Austria, where the Protestants had their strongest hold, the situation remained undecided, with the Catholic governor Hans Jakob Löbl of Greinburg and the Calvinist Georg Erasmus of Tschernembl leading the opposing religious parties. When the future emperor Ferdinand II (the son of Charles, the ruler of Inner Austria) took over in Steiermark, he proved to be the most resolute advocate of the Counter-Reformation. It was he who eventually succeeded in uprooting Protestantism, first in Inner Austria and then in the other Habsburg countries, with the exception of Hungary and Silesia.

      From local skirmishes along the frontier, a long drawn-out war with the Turks developed (1592–1606). In 1598 Raab (now Győr, Hung.), which served as a bastion of Vienna, was temporarily lost; Gran, Veszprém (now in Hungary), and Stuhlweissenburg (now Székesfehérvár, Hung.) passed several times from one side to the other. The introduction of the Counter-Reformation in Hungary, moreover, resulted in a rising of Protestant elements under István Bocskay (Bocskay, István). But in 1606 at Vienna, a peace was concluded between Austria and the Hungarian estates. At Zsitvatorok another peace was negotiated with the Turks, who for the first time recognized Austria and the emperor as an equal partner.

      Political disagreements between Emperor Rudolf, who, to an increasing degree, showed signs of mental derangement, and the rest of the family led to the so-called Habsburg Brothers Conflict. Cardinal Klesl in 1607 brought about an agreement between the younger relatives of the emperor to recognize his brother Matthias as the head of the family. As the conflicts with Rudolf persisted, Matthias strove to come to an understanding with the estates, which were mainly Protestant. The formation of opposing religious leagues in Germany, the Protestant Union and the Catholic League, added to the general confusion.

      Matthias advanced into Bohemia, and, in the Treaty of Lieben (1608), Rudolf conceded to him the rule of Hungary, the Austrian Danube countries, and Moravia, while Matthias had to give up the Tirol and the Vorlande to the emperor. In 1609 the estates received a confirmation of the concessions that Maximilian II had made to them. The cities were guaranteed only in general terms that their old privileges should not be interfered with. At the same time, Rudolf II was forced to grant to Bohemia the so-called Letter of Majesty, which contained far-reaching concessions to the Protestants. After a final defeat of Rudolf in Bohemia in 1611, Matthias was crowned king of Bohemia. Rudolf's death in 1612 finally ended the conflict.

      After Matthias had been elected emperor, his principal councillor, Cardinal Klesl, tried in vain to arrange an agreement with the Protestants in Germany. The ensuing years were filled with wars in Transylvania, where Gábor Bethlen (Bethlen, Gábor) came to power. In the Peace of Tyrnau (1615) the emperor had to recognize Bethlen as prince of Transylvania, and, in the same year, he extended the truce with the Turks for another 25 years. In the meantime, war had broken out with Venice (1615–17) because of the pirating activities of Serb refugees (Uskoken) established on the Croatian coast. A settlement was reached in the Peace of Madrid. The situation in Bohemia then reached a critical point, the religious tensions in the country finding a vent in the Defenestration of Prague (Prague, Defenestration of) (May 23, 1618), in which two of the emperor's regents were thrown from the windows of the Hradčany Palace.

The Bohemian rising and the victory of the Counter-Reformation
      War became inevitable when Emperor Matthias died in 1619. Not that he had been master of the situation, but his death brought Ferdinand II, the most uncompromising Counter-Reformer, to the head of the house of Habsburg. Ferdinand was hard-pressed at first, as Bohemian and Moravian troops invaded Austria. A deputation of the estates of Lower Austria tried to make him renounce Bohemia in a peace treaty and demanded religious concessions for themselves, unsuccessfully. The Bohemians were forced to retreat, and imperial troops advanced into their country. The Bohemians deposed Ferdinand from the throne of Bohemia and elected Count Palatine Frederick V in his stead; two days later, however, Ferdinand II was elected Holy Roman emperor at Frankfurt (Frankfurt am Main) (Aug. 28, 1619).

      War was the only means of resolving the issue. The conflict for the Bohemian crown developed into a European war—the so-called Thirty Years' War—when Spain, the Bavarian duke Maximilian I, and the Protestant elector of Saxony entered the struggle on the side of the emperor. The Upper Austrian estates rashly joined Frederick V, with the result that their country was occupied by the army of the Catholic League and afterward pledged to Bavaria. At the Battle of the White Mountain (White Mountain, Battle of), Ferdinand II became master of Bohemia, Moravia, and Silesia, while Lusatia was pledged to Saxony. King Frederick fled to the Netherlands. The leaders of the Bohemian rising were executed, and other nobles who had compromised themselves lost their property. Many Protestants left the country. In the new constitution of 1627, Bohemia and its associated lands became a hereditary kingdom. The diets were not dissolved entirely, as the government wanted to make use of their administration, but their influence was restricted to financial matters.

      After the death of Matthias, Ferdinand had also inherited the Danubian territories. Tirol, however, retained a special status under a new Habsburg secundogeniture (inheritance by a second branch of the house). Upper Austria, pledged to Bavaria, was disturbed by a great peasant rising. The Protestant peasants were defeated after heavy fighting, and in 1628 the country passed into the hands of the emperor again.

      The Counter-Reformation was vigorously enforced in the Austrian domains. This led to the mass emigration of Protestants, including many members of the nobility. Most went to the Protestant states and to the imperial cities of southern Germany. After the Bohemian victory the war went favourably for the emperor, and the Peace of Lübeck (1629) seemed to secure the hegemony in Germany for the Habsburgs. But in 1629 Ferdinand's attempt in the Edict of Restitution (Restitutionsedikt) to establish religious unity by force throughout the empire provoked the violent opposition of the Protestants.

Struggle with Sweden and France
      July 1630 saw intervention in Germany's religious strife from a different quarter—Sweden. In that month the Protestant Swedish king, Gustav II Adolf, landed on the Baltic coast of Pomerania. His purpose was to defend the Protestants against further oppression, to restore the dukes of Mecklenburg, his relatives, who had been driven from their lands by Ferdinand's forces, and perhaps to strengthen Sweden's strategic position in the Baltic. In the ensuing conflict, the German city of Magdeburg was destroyed by fire after it had been taken by the emperor's troops under General Johann Tserclaes, Graf (count) von Tilly (Tilly, Johann Tserclaes, Graf von) (1631). The North German Protestants, who had so far remained undecided, consequently went over to the Swedes. After victories in the Battle of Breitenfeld (Breitenfeld, Battle of) and on the Lech River, the Swedish troops entered Bavaria.

      During the subsequent period of the Thirty Years' War, Ferdinand adopted a rigorous and often unrelenting attitude, though he yielded a little when the Peace of Prague was being negotiated (1635). His successor, Ferdinand III (1637–57), was as loyal to Catholicism as his father had been but showed himself more of a realist. He was not able, however, to prevent the war from again dragging into Habsburg territory, so in 1645 even Vienna was threatened. The extremist party that had rejected all concessions lost its influence at the Vienna court, and two able diplomats, Maximilian, Graf von Trauttmansdorff (Trauttmansdorff, Maximilian, Graf von), and Isaac Volmar, were entrusted with the representation of a weakened Austria at the German cities of Münster and Osnabrück, where extended negotiations were conducted until acceptable terms could be settled for Austria. In the Peace of Westphalia (Westphalia, Peace of) (1648), Austria lost its possessions in Alsace, and Lusatia had to be ceded for good to Saxony.

      The peace in many respects marked the beginning of a new epoch. The Holy Roman Empire from then on was reduced to a loose union of otherwise independent states, and Habsburg politics shifted its emphasis, falling back entirely on the political, military, and financial resources of the hereditary Habsburg lands, now including also Bohemia. The new central organs and the administrative bodies of the territories took on much greater importance than the remaining institutions of the Holy Roman Empire. The emperor came to rely on a standing army rather than on troops provided by the German princes.

      The heavy drain the religious wars had made on the population of the Austrian territories was compensated for by immigrants from the Catholic parts of the empire and by Croatian refugees from the southeast. The economic position of the peasants on the whole deteriorated. Many members of the nobility, as well as the church, acquired new property. In mining, boom and depression followed quickly upon each other. The loss of many experienced miners during the Counter-Reformation resulted in difficulties, but the government took several steps toward improving and extending the salt mines. In 1625 it founded the Innerberg Union, under which Steiermark's iron industry was reorganized. The emperor also tried to interfere with the trade organizations of the towns, though without much success. Trade and finance in the Austrian territories were dominated by foreign capital.

      The cultural life of the period was also dominated by the religious struggle. In the field of education the schools of the denominational parties rivaled each other. In 1585 a Jesuit university was founded at Graz, while at Salzburg a Benedictine university was established (1623). Austrian humanists produced some outstanding works of poetry and historical writings, and the sovereigns were great patrons of the arts, but on the whole this was an epoch dominated by Italian and Western influences.

Austria as a great power
      After the Thirty Years' War, Austrian rulers were understandably reluctant to enter into another military conflict. In 1654 Ferdinand IV, the eldest son of the emperor, died. His brother, the future emperor Leopold I, who had been destined for a church career, was then considered as heir to the throne and was recognized as such by Austria, Bohemia, and Hungary. In Germany, however, difficulties arose when France declared itself against Leopold. Nevertheless, following the death of Emperor Ferdinand, Leopold was finally elected (1658) after having conceded constitutional limitations that restricted his liberty of action in foreign politics. West German princes under Johann Philipp von Schönborn, archbishop of Mainz, formed the French-oriented League of the Rhine. At the same time, Austria was engaged in the northeast when it intervened in the war between Sweden and Poland (1658) in order to prevent the collapse of Poland. There were some military successes, but the Treaty of Oliva (1660) brought no territorial gains for Austria, though it stopped the advance of the Swedes in Germany.

      During the Thirty Years' War the Turkish front had been quiet, but in the 1660s a new war broke out with the Turks (1663–64) because of a conflict over Transylvania, where a successor had to be appointed for György II Rákóczi (Rákóczi, György, II), who had been killed fighting against the Turks. The Turks conquered the fortress of Neuhäusel in Slovakia, but the imperial troops succeeded in throwing them back. The Austrian military success was not, however, reflected in the terms of the Treaty of Vasvár: Transylvania was given to Mihály Apafi, a ruler of pro-Turkish sympathies. A minor territorial concession was also made to the Turks. The year after the Turkish peace, Tirol and the Vorlande reverted to Leopold I (1665), and the second period of the Habsburg partition (1564–1665) came to an end.

      In Hungary dissatisfaction with the results of the Turkish war spread. Not only the Protestants, who were threatened by the Counter-Reformation, but also many Catholic nobles were alarmed by Habsburg absolutism. A group of Hungarian nobles and Steiermark's Count Hans Erasmus of Tattenbach entered into a conspiracy. The Austrian government, informed of their activities, had four of the ringleaders executed—an action that led to a rising by rebels known as Kuruzen (Crusaders).

      In the meantime, the position of the Habsburgs in the west had again deteriorated. At first, Leopold I's leading statesmen, Johann Weikhart, Fürst (prince) von Auersperg (Auersperg, Johann Weikhart, Prince von) (dismissed in 1669), and the president of the Court Council of War, Wenzel Eusebius, Fürst von Lobkowitz (Lobkowitz, Wenzel Eusebius, Fürst (prince) von), remained rather passive in view of the expansionist policies of Louis XIV of France. They also stayed outside the Triple Alliance of Holland, England, and Sweden that was concluded in order to ward off the attacks of Louis against the Spanish Netherlands. When Louis actually invaded Holland, the emperor finally entered the war, but, in the ensuing Treaties of Nijmegen (Nijmegen, Treaties of) (1679), he had to cede Freiburg im Breisgau to France.

      Another and still more menacing danger appeared in the southeast. After some deliberation the leader of the Hungarian rebels, Imre Thököli, had asked the Turks for help, whereupon the grand vizier Kara Mustafa Pasa (Kara Mustafa Paşa, Merzifonlu) organized a large Turkish army and marched it toward Vienna. Habsburg diplomats succeeded in concluding an alliance between Austria and Poland. Meanwhile, imperial troops under Charles IV (or V) Leopold, duke of Lorraine and Bar, tried to hold back the Turks but had to retreat. From July 17 to Sept. 12, 1683, Vienna was besieged by the Turks. Deciding against a direct assault, the Turks had begun to drill tunnels underneath the bastions of the city when relief columns arrived from Bavaria, Saxony, Franconia, and Poland. King John III Sobieski of Poland took over the command of the relieving army, which descended upon the Turks and dispersed them. The emperor concluded a pact with Poland and the Venetian republic known as the Holy League. In 1685 Neuhäusel was won back, and in September 1686 Ofen (Buda) was captured despite fierce Turkish resistance.

      In 1687 the Hungarian diet recognized the hereditary rights of the male line of the Habsburgs to the Hungarian throne. In 1688 Belgrade, Serb., was conquered, and Transylvania was secured by imperial troops. Meanwhile, Louis XIV had begun an offensive against the German Palatinate that grew into the War of the Grand Alliance (Grand Alliance, War of the). This war meant that no further troops could be spared for the Turkish war, and in 1690 all recent conquests in the south, including Belgrade, were lost again. A victory of the imperial and the allied German troops under Margrave Louis William I of Baden-Baden near Slankamen, Serb., (1691) prevented the Turks from advancing farther, but then the margrave was ordered to the Rhine front. Eventually Prince Eugene Of Savoy took over the command and gained a decisive victory over the Turks in the Battle of Zenta (Zenta, Battle of) (1697). After another offensive against Bosnia (Bosnia and Herzegovina), the Turks finally decided to negotiate a peace. In the Treaty of Carlowitz (Carlowitz, Treaty of) (1699) Hungary, Transylvania, and large parts of Slavonia (now in Croatia) fell to the Habsburg emperor. Meanwhile, the war in the west, overshadowed already by the question of the Spanish succession, had come to an end with the Treaty of Rijswijk (1697).

      From 1701 to 1714 Austria was involved in hostilities with France—the War of the Spanish Succession (Spanish Succession, War of the)—over the heir to the Spanish throne. The childless king Charles II of Spain, a Habsburg, had willed all his possessions to a Bourbon (Bourbon, House of) prince—a grandson of Louis XIV of France. All those who disliked the idea of a French hegemony in Europe consequently united against the French. The emperor declared war (1701) and was immediately supported by Brandenburg- Prussia and Hanover. In the spring of 1702, England and Holland entered the war in the Grand Alliance (Grand Alliance, War of the) against France. Louis XIV was able to win the electoral princes of Bavaria and Cologne as his allies. At this critical juncture another Hungarian rising, led by Ferenc II Rákóczi (Rákóczi, Ferenc, II), occurred. The rebels were prepared to join forces with the enemies of Austria and for years engaged Austrian troops. The rebels even threatened Vienna, whose suburbs had to be fortified. In the war with France, imperial troops fought on four fronts: in Italy, on the Rhine, in the Spanish Netherlands, and in Spain. Much larger forces were mobilized than had been customary during the 17th century, and the financial drain on the imperial treasury was so heavy that the emperor had to resort to Dutch and English loans. When Bavaria entered the war on the side of the French, Austria was in further danger, until the Battle of Blenheim (Blenheim, Battle of) (1704), in which an English and Austrian army under the duke of Marlborough (Marlborough, John Churchill, 1st Duke of, Marquess Of Blandford, Earl Of Marlborough, Baron Churchill Of Sandridge, Lord Churchill Of Eyemouth, Reichsfürst) and Prince Eugene of Savoy defeated the French and Bavarian forces.

      After a reign of 48 years filled with almost endless troubles, Emperor Leopold died in 1705. He was succeeded by his son, Joseph I (reigned 1705–11). In the religious quarrels the new emperor, an ally of Protestant states, showed great restraint and allowed himself to be guided mainly by political motives.

      In 1703 Victor Amadeus II, duke of Savoy, who had left the French to go over to the Habsburgs, found himself in a critical situation; his capital, Turin, had come under French siege. An imperial army under Prince Eugene and reinforced by a Prussian contingent was sent to his aid and succeeded in uniting with the Savoyan forces and relieving Turin after a victorious battle (1706). At the beginning of the next year, an agreement was reached under which the French evacuated northern Italy. The same year, a smaller imperial army under Wirich, Graf (count) von Daun, conquered Spanish-ruled southern Italy, but an invasion of southern France, which the sea powers had instigated, failed. A quick success, however, fell to the Austrians in a campaign against the Vatican (Vatican City) state over a conflict between the emperor and the Roman Curia concerning mutual feudal rights and caused by Pope Clement XI's (Clement XI) rather pro-French leanings.

      The allies were victorious in the Netherlands, winning the Battle of Oudenaarde (Oudenaarde, Battle of) and conquering Lille (1708). Paris seemed within easy reach. The Battle of Malplaquet (Malplaquet, Battle of) (1709) was another victory for the allies, but they had to pay dearly for it. In the meantime, peace negotiations had foundered. After reverses in Spain and a political change in England, the alliance itself was in danger of falling apart. The situation was further aggravated by the death in 1711 of Emperor Joseph I, who left only daughters.

      At this juncture, liquidation of the Hungarian rising became possible. Rákóczi, who in 1707 had declared the deposition of the Habsburgs, began to meet with growing opposition among his followers. Imperial troops forced Rákóczi to flee to Poland, and the rebels, who had been promised an amnesty and who were guaranteed religious liberty, made their peace in 1711. From then on the Vienna government tried to be more considerate of Hungary and its aristocracy.

      The election of Charles VI as emperor was effected without any difficulties. The English left the coalition, and after a military reverse most of the Habsburgs' allies joined the treaties of Utrecht (Utrecht, treaties of) (1713–14). In the peace negotiations between Austria and France that were begun at Rastatt (Rastatt and Baden, treaties of), Ger., Prince Eugene showed himself an unyielding and successful agent of Habsburg interests (see Rastatt and Baden, treaties of). Austria gained the Spanish Netherlands (henceforth known as the Austrian Netherlands), a territory corresponding approximately to modern Belgium and Luxembourg. These gains were somewhat impaired, however, by the Dutch privilege of stationing garrisons in a number of fortresses. In Italy, Austria received Milan, Mantua, Mirandola, the continental part of the Kingdom of Naples (Naples, Kingdom of), and the isle of Sardinia. The Wittelsbachs of (Wittelsbach, House of) Bavaria regained their country, but the treaty contained an appendix that provided for the eventuality of Bavaria's being exchanged for the Netherlands. Of its gains, the northern Italian territories were of the greatest value to Austria; the possession of Naples and the Netherlands, on the other hand, posed considerable military and political risks.

Problem of the Austrian succession
      The extinction of the Spanish line of the Habsburgs and the fact that the emperor Charles VI was the last male member of that house posed serious problems for the Habsburg territories, which, at the beginning of the 18th century, were held together mainly by the person of the sovereign, notwithstanding the fact that there were some institutions of central administration. A settlement was made in the form of a family ordinance. On April 19, 1713, Charles VI issued a decree, according to which the Habsburg lands should remain an integral, undivided whole. In the event of the Habsburgs' becoming extinct in the male line, the daughters of Charles or their descendants or, in default of any descendants of Charles, the daughters of Joseph I and their descendants and, after them, all other female members of the house, should be eligible for the succession. As the son that was born to the emperor in 1716 died after a few months and only daughters were born to him after that (Maria Theresa, 1717; Maria Anna, 1718; Maria Amalia, 1724), this Pragmatic Sanction (Pragmatic Sanction of Emperor Charles VI) (a term used to characterize a pronouncement by a sovereign on a matter of prime importance) became of great significance. Austrian diplomacy in the last decades of Charles's reign was directed toward securing acceptance of the Pragmatic Sanction from all the European powers. It was published in 1720 and by 1722 had been recognized by the estates of all the Habsburg countries. Even the unanimous consent of the Hungarian diet was eventually obtained.

New conflicts with the Turks and the Bourbons (Bourbon, House of)
      During the War of the Spanish Succession, the Ottoman Empire had remained neutral toward Austria. But the Turks had attacked the possessions of the Venetians on the Peloponnese and on the Ionian Islands. Austria tried to intervene and finally declared war. Prince Eugene defeated the Turks near the fortress of Peterwardein (Petrovaradin, now part of Novi Sad, Serb.) and conquered the strong bastion of Temesvár (now Timisoara (Timişoara), Rom.) in 1716. In the summer campaign of 1717, Belgrade again came into the hands of the imperial troops after a battle was won against a Turkish relief army. In the Treaty of Passarowitz (Passarowitz, Treaty of) (1718), a frontier line was agreed upon that corresponded to the de facto situation. The Turks had to cede to the Austrians the Banat region, the Turkish part of Syrmia (Srem, now part of Vojvodina, Serb.), Walachia Minor as far as the Olt (Olt River) (Aluta) River, northern Serbia, Belgrade, and a strip of land along the frontier in northern Bosnia. A favourable trade agreement was also concluded.

      During the Turkish war another crisis emerged. The Spanish minister Giulio Alberoni (Alberoni, Giulio) tried to initiate a policy of expansion in Italy. When Spanish troops landed in Sardinia and Sicily, the emperor formed an alliance with Great Britain and France, later joined by the Dutch Republic (the Quadruple Alliance). After the English defeated the Spanish fleet, Madrid recalled its troops from the disputed territories. Austria received the more prosperous Sicily in exchange for Sardinia, which fell to Savoy. Charles then agreed to recognize the Spanish Bourbons. The gains from the Quadruple Alliance plus those of the Treaty of Passarowitz gave the Habsburgs the largest territory they were ever to rule. Their domains were far from unified, however, with the individual provinces showing a wide national, economic, cultural, and constitutional diversity.

      Trading interests soon interfered with the empire's alliance with the maritime powers of Britain and the Dutch Republic. At first the attempts of the Ostend Company, which was backed by Charles VI, to enter into trade with India were quite successful. Because of the antipathy of the maritime powers, however, it seemed advisable to find an alternative to trade with Dutch and British colonial markets in the vast transatlantic empire of Spain. In 1725 Charles entered into an alliance with Spain, whereupon France, Great Britain, and Prussia formed a rival alliance. But soon after Russia was won over to the Habsburg cause, Prussia changed sides. As the outbreak of a European war seemed imminent, attempts were made at the Congress of Soissons to relax political tensions. Spain abruptly changed its alliances and concluded a treaty (1729) with England and France, the Dutch Republic joining later. When Russia also began to waver, Prince Eugene tried to fall back on the traditional alliance with the maritime powers. After prolonged and difficult negotiations, Britain in 1731 accepted the Pragmatic Sanction, the emperor in return giving a promise not to marry his daughter Maria Theresa, the Habsburg heiress, to a prince who was himself heir to important domains. Austria finally dissolved the Ostend Company, having already suspended its charter in 1727. Charles VI then invested a great deal of energy in his endeavours to secure the recognition and the guarantee of the Pragmatic Sanction in the German diet. In this he was opposed by Bavaria and the elector of Saxony, but Austria finally obtained the guarantee of the Pragmatic Sanction at the Regensburg Diet (1732).

      The question of the Polish succession led to a revival of the Austrian conflict with the Bourbon countries. Austria, with Prussia and Russia, favoured Augustus III of Saxony, the son of the deceased king, whereas France backed Stanisław I (Stanisław Leszczyński). On the military intervention of Russia in Poland, the Bourbons attacked Austria. The issue came to be mixed up with the problem of Lorraine; France dreaded that, on the impending marriage of Maria Theresa to Francis Stephen (Francis I), duke of Lorraine, the latter's domains would be united with Austria's, and French plans for the acquisition of Lorraine would be thwarted. France, Sardinia, and Spain simultaneously opened the war (Polish Succession, War of the) against Austria in 1733 (see Polish Succession, War of the). Prince Eugene, who was now aged, was able only to prevent a major success of the enemy on the Rhine. On the Italian front the Habsburgs fared even worse. The Battle of Parma ended undecided, but the Austrians were finally beaten near Guastalla in northern Italy. The small Austrian force that was stationed in southern Italy was unable to resist the Spanish attack, and Sicily and Naples were occupied by the Spaniards. In 1735 a Russian relieving corps reinforced the Habsburg front on the Rhine, and in northern Italy there were also a few successful operations of some local importance.

      Direct contacts between Austria and France eventually led to the preliminary Peace of Vienna (Oct. 3, 1735). Austria lost Naples and Sicily, which fell to a secondary branch of the Bourbons, and had to cede a tract of territory in Lombardy to Sardinia. As some compensation, Austria received Parma and Piacenza (Parma and Piacenza, Duchy of). Francis Stephen of Lorraine was promised Tuscany but had to renounce his hereditary duchy. On these conditions, France agreed to recognize the Pragmatic Sanction. The final peace was then concluded at Vienna in 1738.

      Prince Eugene had died during the War of the Polish Succession. It soon proved disastrous that a successor of similar capacity was not found. During the second Turkish war (Russo-Turkish wars) of Charles VI (1737–39), Austria joined in the Turkish-Russian conflict but without coordination of military operations. The Austrians, furthermore, underrated the Turkish forces and were themselves reduced by epidemics. The fortress of Niš, Serb., was taken but was lost again soon afterward. Peace negotiations conducted at Nemirov, Ukr., were broken off, and the war went on. The Austrians lost another battle at Grocka, Serb. Again peace negotiations were launched, in the course of which the larger part of the gains of the Peace of Passarowitz were lost. More disquieting even than the territorial losses was the loss in prestige. The epoch that had seen the rise of Austria to a great power thus ended with reverses.

Social, economic, and cultural trends in the Baroque period
      The Thirty Years' War and the Turkish wars had resulted in the devastation of large parts of the country and in great losses among the population, which suffered further reduction during the plague years of 1679 and 1713. The territories that had been wrested from the Turks had to be resettled systematically by German and other immigrants. The initiative for resettlement projects came from the official bureaucracy, the settlements being concentrated mainly in the south of Hungary. During the period of religious conflicts, many Protestants had been exiled, but, in the 18th century, Protestants often were transported to the various underpopulated parts of the empire.

      In the industrial and commercial fields, mercantilist (mercantilism) ideas, encouraged by the government, were prominent from the 1660s. The situation of the peasantry was thoroughly unfavourable. Tentative measures in the reigns of Leopold I and Charles VI to protect the peasants had little effect. Certain “model industries” (mostly textile factories) were established but were only partly successful. The economic policy of the absolutist state also resulted in strong interference with trade organizations. The guilds (guild) were suppressed or at least debarred from the new manufactures.

      Trade was encouraged but yielded only small gains for the state. Industrial and commercial undertakings were managed in part directly by the state but largely through privileged corporations or private persons. Of some importance were the first (1667) and the second (1719) Oriental trading companies and the Ostend Company (1722). Trade in the Mediterranean was also intensified. Promising colonial ventures in India were discontinued for political reasons, however, in the middle of the 18th century. Under Charles VI new roads came to be planned and built on a large scale.

      The state was in permanent want of money. This was a period of perpetual war as well as great economic investments, both entailing excessive strain on state finances. At first the government resorted to rich bankers such as Samuel Oppenheimer and his successor Samson Wertheimer for funds. Soon, however, it attempted to establish state-controlled banking firms. The Banco del Giro, founded in Vienna in 1703, quickly failed, but the Vienna Stadtbanco of 1705 managed to survive; the Universalbancalität of 1715 was liquidated after a short period of operation.

      After the victory of the Counter-Reformation, education was almost exclusively in the hands of the Roman Catholic Church. The grammar schools of the religious orders, especially of the Jesuits and the Benedictines, set a very high standard for the most part. In 1677 another university was established at Innsbruck, the theological school of which was to acquire some fame. Historical writing (historiography) flourished, the most outstanding works being those of two Benedictine brothers, Bernard and Hieronymus Pez; Gottfried Bessel, abbot of Göttweig; and Leopold I's official historiographer, the Jesuit Franz Wagner. The Austrian Jesuits were famous for their scientific and geographic researches, most notably the exploration of China.

      Among the achievements of Baroque (Baroque period) poetry, mention should be made of Wolf Helmhart of Hohberg, whose works offer interesting insights into the life of the nobility, and of Katharina of Greiffenberg. The theatre of the Baroque was remarkable for the splendour of its decorations and the ingenuity of its stage machinery. The plays produced ranged from the elaborate Italian opera to the blunt humour of the popular play. Music attained an especially high standard, encouraged by three emperors who were themselves composers (Ferdinand III, Leopold I, and Joseph I). Charles VI was also a skillful musician, and he engaged the services of Johann Joseph Fux (Fux, Johann Joseph), who came from eastern Steiermark and developed into an important composer and teacher.

 Austrian Baroque culture is most clearly revealed by the splendours of its architecture (Western architecture). At first the field was dominated by the Italians, but soon native architects stepped forth. Preeminent among them was Johann Bernhard Fischer von Erlach (Fischer von Erlach, Johann Bernhard) (whose works included the first plan of the Schloss Schönbrunn (Schönbrunn, Schloss) in Vienna, Karls Church in Vienna, and Kollegien Church in Salzburg) and his son Josef Emanuel Fischer von Erlach (who designed the Hof Library, in Vienna). They were rivaled by Jakob Prandtauer (whose works included monasteries in Herzogenburg and Melk) and especially by Johann Lucas von Hildebrandt (Hildebrandt, Johann Lucas von) (who designed the Schwarzenberg and Belvedere palaces in Vienna, Peters Church in Vienna, and the monastery of Göttweig). Among native sculptors, Georg Raphael Donner (Donner, Georg Raphael) was the first in rank and quality of work. Fresco painting was best represented by Johann Michael Rottmayr from Salzburg, Daniel Gran from Vienna, and Paul Troger from the Tirolean Pustertal valley. (See also Baroque period.)

Erich Zöllner Reinhold F. Wagnleitner

From the accession of Maria Theresa to the Congress of Vienna
 In October 1740 the Holy Roman emperor Charles VI, the last male Habsburg ruler, died and was succeeded by his daughter Maria Theresa, the young wife of the grand duke of Tuscany, Francis Stephen of Lorraine. Although no woman had ever served as Habsburg ruler, most assumed at the time that the succession would pose few problems because of Charles VI's diligent efforts to gain recognition for her. He had established a reasonably unified order of succession for all the lands under Habsburg rule (the Pragmatic Sanction) and, by making broad concessions to foreign powers and to the diets of the crown lands, had secured recognition of this act from most of the important constitutional units inside and outside the Habsburg lands. When he died, he had no reason to expect anything less than a smooth transition for his daughter.

      The challenge to that transition came from a surprising source—the kingdom of Prussia. For the previous 40 years, Prussia had been a fairly loyal supporter of the Habsburgs, especially in matters related to the Holy Roman Empire and in matters involving Poland. The Prussian king Frederick William I (reigned 1713–40) had created perhaps the most proficient, if not the largest, army in Europe but had displayed no eagerness to use it except in the service of the empire, and then only reluctantly. But Frederick William had died about five months before Charles VI, and his son and heir, Frederick II (later called the Great), had no reluctance to use his father's finely honed armed force. In December 1740 Frederick II invaded the Habsburg province of Silesia and thereby threatened not only to conquer the wealthiest of the Habsburg lands but also to challenge Maria Theresa's right to rule the rest of them, a challenge soon joined by other powers.

      As Maria Theresa prepared to meet these threats, she found that the resources left by her father were meagre indeed. The War of the Polish Succession and the war against the Turks from 1737 to 1739 had drained the monarchy's financial and military resources and spread irresolution and doubt among its senior officials. The army sent forth to meet Frederick suffered defeat in the Battle of Mollwitz in April 1741. This defeat prompted the formation of an alliance of France, Bavaria, and Spain, joined later by Saxony and eventually by Prussia itself, to dismember the Habsburg monarchy. Faced by this serious threat, Maria Theresa called together her father's experienced advisers and asked them what she should do. Most argued that resistance was hopeless and recommended that she make the necessary sacrifices in order to reach as quick an accommodation with her enemies as possible, a policy endorsed by her husband. This counsel offended Maria Theresa, who regarded it as defeatism; commenting on this period later, she described it as finding herself “without money, without credit, without an army, without experience, and finally without advice.”

      Maria Theresa had no intention of surrendering. She resolved to drive off her enemies and then to create a government that would never again suffer the humiliation she experienced at her accession. To begin, she reached a settlement with Frederick, ceding to him Silesia by the treaties of Breslau and Berlin in June and July 1742. She did so only to focus resistance on the French and Bavarians, who in late November 1741 had occupied Upper Austria and Bohemia, including the Bohemian capital, Prague. In the wake of these conquests by anti-Habsburg forces, in January 1742 the electors of the Holy Roman Empire rejected the candidacy of Maria Theresa's husband and chose as emperor Charles Albert of Bavaria (called Charles VII as emperor), the only non-Habsburg to serve in that capacity from 1438 to the empire's demise in 1806. Perhaps as a portent of his unhappy reign as emperor, on the day of Charles Albert's coronation in Frankfurt, Habsburg forces occupied his Bavarian capital of Munich, which they held until shortly before his death three years later.

      The War of the Austrian Succession (Austrian Succession, War of the), as this conflict is called, continued until 1748. It rather quickly became a struggle of two alliance systems, with primarily France, Bavaria, Spain, and Prussia on one side and Austria, Great Britain, and the Dutch Republic on the other. Saxony and Sardinia began the war as members of the first alliance and later switched to the second. Russia joined Austria in a defensive accord in 1746, primarily to prevent Prussia from reentering the war after it had concluded the Treaty of Dresden with Austria in 1745.

      The Treaty of Dresden and the Treaty of Aix-la-Chapelle (Aix-la-Chapelle, Treaty of) in 1748 brought the various parts of the war to an end. Austria had to return some minor principalities in Italy to the Spanish Bourbons until such time as the Bourbon lines there became extinct and had to agree to a small frontier rectification in favour of Piedmont-Sardinia (Sardinia), but neither of these adjustments was of great consequence. For Austria the most serious loss was Silesia, which Maria Theresa found necessary to cede to Prussia first in 1742 and again in 1745. Losing Silesia opened the way to the rise of Prussia as the most serious rival of the Habsburgs in Germany. It also meant a considerable decrease in the proportion of Germans living within Habsburg lands, with important consequences in the rise of the national problem in the following century. Although as part of the cession Frederick II agreed to recognize the election of Francis Stephen of Lorraine as Holy Roman emperor Francis I in 1745, Maria Theresa never forgave his “rape” of Silesia; at the war's conclusion she immediately undertook preparations first to deter Frederick from coveting more of her lands and then to take Silesia back. (See also Silesian Wars.)

      Perhaps the most important result of the war for Austria, however, was the very fact that the monarchy was not dismembered. Nor did it become a satellite state under the tutelage of other great powers. The outcome of the War (Silesian Wars) of the Austrian Succession, except for the loss of Silesia, was a genuine defensive victory that proved to the world that Austria represented more than an agglomeration of lands under the same rule, acquired by wars and marriage contracts. In the two centuries since Ferdinand I had become king in Bohemia, Hungary, and Croatia, as well as regent in the so-called hereditary lands, a certain cohesion between the major historical units had been clearly established.

First reforms, 1748–56
      Maria Theresa determined from the outset of her reign that the Habsburg monarchy would never again be perceived as too weak to defend itself. Consequently, even while the war was under way she had been studying reforms, and when it ended she immediately began implementing them. First and foremost was reform of the army. Maria Theresa proposed establishing an effective standing army of 110,000 men—60,000 more than in her father's day and 30,000 more than the Prussian peacetime army of Frederick William I. She also tried to encourage her nobility to take a greater interest in serving in the officer corps, creating a school for officers called the Theresianum at Wiener Neustadt and introducing military orders as rewards for good service.

      Maria Theresa realized, however, that no military reform would be effective without financial reform, and in this area she achieved her greatest accomplishments. Before Maria Theresa came to the throne, Habsburg finances were to a great extent based on the contributions offered by each of the monarchy's crown lands, or provinces. The crown lands were governed by estates sitting in diets (parliamentary bodies made up of representatives of the nobility, the church, and the towns). These bodies negotiated annually with the ruler regarding the amount of taxes (i.e., the contribution) that each crown land would pay to the central government. Following the advice of Friedrich Wilhelm, Graf (count) von Haugwitz, a Silesian who had fled the Prussians in 1741, Maria Theresa proposed negotiating with each diet only every 10 years, setting the amount to be collected annually for an entire decade. The estates were generally not happy with the proposal, but she made certain that each agreed to it in one form or another. The results were a steady income upon which reliable budgets could be based and an erosion in the power of the diets—which, although never abolished, lost much of the influence they had held in the past.

      Following the military and financial reforms came other changes, generally in administrative matters. Although these reforms were subjected to many modifications and changes throughout Maria Theresa's reign and after, the result was a government far more centralized than it had ever been before.

Seven Years' War, 1756–63
      While Maria Theresa and her advisers focused on internal reform, her new state chancellor, Wenzel Anton, Graf (count) von Kaunitz (Kaunitz, Wenzel Anton von) (subsequently Fürst [prince] von Kaunitz-Rietberg and Maria Theresa's most important adviser until her death in 1780), laid the diplomatic preparations for the reconquest of Silesia. The result in 1756 was the “reversal of alliances,” a treaty system intended to isolate Prussia. With the two sets of irreconcilable enemies being France and Great Britain on the one hand and Prussia and Austria on the other, the reversal refers to Austria abandoning Great Britain as an ally in favour of France, and Prussia abandoning France as an ally in favour of Great Britain. However, it may be argued that the switch was made possible by Empress Elizabeth of Russia's determination to do in Frederick II, and Frederick's seeking out Great Britain to intercept a Russo-British accord. In any case, when war erupted in 1756, Austria, France, and Russia seemed to have formed an alliance that Prussia, with only Britain as a friend, could never resist.

      The ensuing conflict was the Seven Years' War, the great war of the mid-18th century. Undoubtedly, its most important result occurred not on the European Continent but in Europe's colonial empires, where British forces decisively defeated the French, paving the way for British control of Canada and the eventual domination of India. On the Continent, Austria, France, and Russia could never bring their united strength to bear effectively on Prussia. Prussia fended off all its enemies by exploiting its economic and human resources about as well as any 18th-century power could, by taking advantage of internal lines, and by virtue of Frederick II's military genius. But it did so at considerable cost. In October 1760 a Russian force reached Berlin, and by 1761 Frederick himself was so discouraged that he was contemplating abdication as the only way to salvage his beleaguered state.

      Although it was not obvious at the time, for all intents and purposes the war ended with the death of Empress Elizabeth in January 1762. Her successor, Peter III, worshipped Frederick II and was determined not only to end Russia's war against Prussia but also to join Prussia in fighting against Austria and France. Before he could implement such a radical change in policy, however, he was deposed by conspirators supporting his wife, Catherine II (later called the Great), and their policy was simply to end the war. With Russia out of the conflict and France defeated throughout the world, Maria Theresa and her advisers could see no alternative but to negotiate a settlement with Prussia based on the status quo ante (Treaty of Hubertusburg, 1763), meaning that once again Prussia retained Silesia.

Reforms, 1763–80
      Maria Theresa's second period of reform was more important than the first, because it carried with it elements of centralization and change that were portents of the kind of government, society, and economy that would emerge in the 19th century and mature in the 20th. As modern as some of these elements were, the government that introduced them was not thinking of long-range goals but was dealing with immediate problems, the most important being recovery from the Seven Years' War. The area requiring urgent attention was finance. The cost of the Seven Years' War had added so much debt to the treasury that, for the remainder of Maria Theresa's reign, servicing that debt while providing for the costs of defense and governmental operations became the obsession of many of her advisers.

      Financial need led Maria Theresa and her statesmen into other fields. All realized that financial recovery to a great extent depended on an improved economy, and they introduced a number of measures to make it better. Foreign workers and artisans with skills in the manufacture of various articles were recruited from the Low Countries, the Italian lands, and Germany and settled throughout the monarchy. Farmers came from western Europe for settlement in some of the more remote lands of the monarchy that had been badly depopulated, mainly in southern and eastern Hungary. Some important sectors of the economy, such as textiles and iron making, were freed from guild restrictions. And in 1775 the government created a customs union out of most of the crown lands of the monarchy, excluding some of the peripheral lands and the kingdom of Hungary, which was not joined to Austria in a customs union until 1851.

      The basically mercantilist policy of Charles VI's reign and earlier was revised in line with the influence of physiocratic and so-called populationist theories (see physiocrat). Thenceforward human labour, and not precious metal, was gradually to become the yardstick of national wealth. This led, on the one hand, to restrictions on emigration and, on the other, to an easing of some imports that were not considered competitive with domestic industries.

      Financial and economic reforms also had an impact upon society. Maria Theresa's government was fully aware that most taxes came from society's lower elements, and so it was eager to make certain that those lower elements had the wherewithal to bear their burden. In 1767 she imposed a law on Hungary regulating the rights and duties of the serfs (serfdom) and their lords with the intent of bettering the condition of the peasants (peasant), which was not good at all. This law suffered somewhat because the lords themselves were responsible for implementing it, but it was later codified into the Hungarian statutes in 1790–91 and remained the basic law regarding the status of the serfs until their final emancipation in 1848. In response to a serf revolt in 1774 protesting not only oppression but also hunger, Maria Theresa issued a law in Bohemia in 1775 that restricted the aristocratic practice of exploiting the work obligations of the peasantry. She also had plans drawn up to change the dues of the peasantry from various forms of service to a strictly rent-paying system. Such a system was introduced on lands owned by the crown, but she did not enforce its extension to privately held lands. (See also serfdom.)

      Maria Theresa also introduced a system of public education. The motivation for this reform came from concern both that the Roman Catholic Church in Austria was no longer maintaining public morality properly and that certain changes in the 18th-century economy required that Austria provide a better-educated work force. It is often assumed that the great mass of the people in Austria at this time were serfs working on the lords' lands, owing various work and money dues, and thus—while suffering oppression—at least forming a fairly stable society. In fact, by the late 18th century the vast majority of the rural population was made up of cottars, gardeners, and lodgers who owed minimal feudal duties and who depended on nonagricultural occupations for their survival. These people represented a proto-industrial work force, but they also represented an ignorant and potentially ill-disciplined rural population. Compulsory education was a method of instilling a good work ethic and a sense of morality in them. In 1774 Maria Theresa issued the General School Regulation for the Austrian lands, establishing a system of elementary schools, secondary schools, and normal schools to train teachers. The implementation of this regulation was difficult owing to a lack of teachers, resistance on the part of lords and peasants alike, and a shortage of funds. Despite these obstacles, however, 500 such schools had opened by 1780.

Foreign affairs, 1763–80
      The great change in Maria Theresa's foreign policy after 1763 was her reconciliation to the loss of Silesia. Although as a result Maria Theresa and her advisers focused their attention for the most part on domestic affairs, a few foreign matters offered the monarchy opportunities for territorial gain and in two cases carried the threat of renewed warfare. In 1768 the old matter of the fate of the Ottoman Empire appeared again, this time in the form of a Russo-Turkish war and the possibility that Russia would not simply defeat the now-decaying Ottoman state but would replace it as the Habsburg neighbour in the southeast, a condition the Habsburgs wanted to prevent even at great cost. By 1771 Kaunitz (Kaunitz, Wenzel Anton von) was so fearful that this possibility was becoming a probability that he recommended that Austria form an alliance with the Turks to fight the Russians, an idea resisted by Maria Theresa, who still regarded the Turks as infidel predators in Europe. (See also Russo-Turkish wars.)

      The threat of war diminished, however, owing to the intervention of Frederick II, who suggested as a solution to the crisis the annexation of Polish territory by the three great eastern European powers and the maintenance of the Ottoman Empire in its entirety in Europe. Austria agreed to this suggestion, although Maria Theresa herself did so most reluctantly. She believed that the difficulties she had had at the beginning of her reign had been brought on by the refusal of the European powers to respect the territorial integrity of their fellows and that, by agreeing to the partition of Poland, she was in fact endorsing the same kind of cynical, parasitical policy that had caused her such grief and that she had regarded as so heinous in 1741. However, as Kaunitz warned her, refusal to take part would not only continue the threat of war but also weaken the monarchy relative to its two powerful neighbours, who had no compunction about adding land and taxpayers to their rolls while Austria received nothing. Consequently, in 1772, Austria, Prussia, and Russia participated in the First Partition of Poland (Poland, Partitions of), which added the Polish province of Galicia to the monarchy. (See also Poland, Partitions of.)

 In 1775, following the initiative of Joseph II, Maria Theresa's son, who had joined her as coruler after the death of her husband, the monarchy wrested the province of Bukovina from the Turks. The province served as a convenient connection between Galicia and Transylvania.

      In 1778 one of Kaunitz's initiatives, to trade the distant Austrian Netherlands for nearby Bavaria, led to a third war with Prussia. This War of the Bavarian Succession (Bavarian Succession, War of the), however, featured virtually no military contact between the two powers, because Maria Theresa, who for a time had left most of the policy making to her chancellor and her son, intervened directly with her old enemy Frederick II and concluded with him the Treaty of Teschen. The treaty resulted in a few minor territorial adjustments—especially the addition of Bavarian territories east of the Inn River to Upper Austria—but above all in the canceling of the proposed swap of the Austrian Netherlands for Bavaria.

Early reign of Joseph II, 1780–85
      Maria Theresa died in 1780 and was followed by Joseph II. The problem of succession had caused Maria Theresa considerable grief in her early years, and she had vowed to create not only governmental institutions to protect her lands but familial ones as well, most notably by making certain that there would never again be a shortage of Habsburgs to rule the monarchy (after her marriage, the official name of the family changed from Habsburg to Habsburg-Lorraine). She gave birth to 16 children, the oldest male being Joseph. Upon the death of Francis I in 1765, Joseph had become emperor and co-regent, but Maria Theresa kept most of the authority in her hands, a condition that led to frequent clashes between the strong-willed mother and the strong-willed son.

      When Joseph became sole ruler, he was determined to implement his own policies. One was broadening church (church and state) reform. Joseph's role as church reformer has been the subject of considerable debate. In Austrian history the term Josephinism generally means subjecting the Roman Catholic Church in the Habsburg lands to service for the state, but the origins and extent of such subjection have generated controversy. Both Maria Theresa and Joseph were devoutly Roman Catholic, but both also believed in firm state control of ecclesiastical matters outside of the strictly religious sphere. To improve the economy, Maria Theresa ordered restrictions on religious holidays and prohibited the taking of ecclesiastic vows before the 24th birthday. She insisted that clerics be subject to the jurisdiction of the state in nonecclesiastical matters and that the acquisition of land by the church be controlled by the government. She took action against the Society of Jesus (Jesuits (Jesuit)), but only in 1774, after the pope had ordered its suppression.

      Joseph's most radical measures in church matters were the Edict of Toleration (Toleration, Edict of) (1781) and his monastic reforms (Enlightenment). The edict and the legislation attached to it gave Lutherans, Calvinists, and Orthodox Christians near equality with Roman Catholics and gave Jews the right to enter various trades as well as permission to study at universities. In this respect, the difference between Joseph and his mother was fundamental. While Maria Theresa regarded Protestants as heretics and Jews as the embodiment of the Antichrist, Joseph respected other Christian denominations, believed Jews did good service for the state, and had at least entertained the thought of an Austrian church independent of Rome.

      As to the monasteries, Joseph held that institutions not engaged in useful work for the community—above all agriculture, care of the sick, and education—should be dissolved. Consequently, about a third of the Austrian monasteries ceased to exist, their former members being ordered to learn skills adapted to secular life. The property of the dissolved institutions was used to pay for the upkeep of parishes and to finance the establishment of new parishes.

      Control of church discipline and church property were further tightened by Joseph; seminaries for the training of the clergy were secularized. He even tried, without success, to simplify the Roman Catholic liturgy. Many of his religious policies were discontinued in the reaction that followed, but the Edict of Toleration and the monastic reforms remained.

      Another of Joseph's famous reforms was the abolition of serfdom, which was not quite a total abolition but certainly changed considerably the status of the peasants (peasant). In November 1781 he issued a decree allowing any peasant to move away from his village, to engage in any trade of his choosing, and to wed whomever he wished, all without asking permission of his lord. Labour service required of a peasant's children was abolished, except for orphans. Initially these new freedoms applied only to the lands of the Bohemian crown, but over the next few years they were applied to the other Austrian lands and in 1785 to Hungary, the land that had been exempt from most reforms in the Theresian period. Joseph issued decrees providing for peasant appeals to the central government for redress of grievances; this was to make certain that the feudal courts, controlled by the lords, could not sabotage these reforms by issuing decisions against peasants who wanted to exercise their new rights. Such changes were preludes to Joseph's most daring reform, a proclamation in 1789 that all land, whether held by nobleman or commoner, would be taxed at the same rate of 12 2/9 percent of its appraised value and that all dues and services paid by a peasant to his lord would now be commuted to a cash payment not to exceed 17 2/9 percent of the peasant's production.

      To muster popular support for these and other reforms, Joseph II in 1781 also substantially eased official censorship, which had been a characteristic of Theresian rule that had undergone a good bit of criticism even in the 18th century. His immediate purpose was to generate support for his religious policies by unleashing those popular writers eager to condemn Roman Catholic clericalism and especially the pope, and for the first few years he was not disappointed. These very writers soon began to find fault with Joseph's policies, however, and the emperor began to respond in ways that reduced considerably the initial liberalization. Censorship was reimposed, and in 1786 he issued secret instructions to the police to concentrate their attention on monitoring public opinion at all levels of society. By 1789 the police reports contained almost exclusively news on agitators and potential unrest.

Late reign of Joseph II, 1785–90
      Toward the end of Joseph's reign, there was indeed increasing dissatisfaction. Religious elements were unhappy with many of his reforms, and both lords and peasants were apprehensive about what his agricultural changes would mean for their future. Moreover, a few other policies had inspired resistance. In 1784 he informed the Hungarian government that its official language, Latin, was not effective for modern government and, since Hungarian was spoken by only part of the population of that kingdom, that the language of government from then on would be German. That language would be used in the central offices immediately, in the county offices after one year, and in the local offices after three. Government employment and even membership in the Hungarian Diet would be open to German speakers only. Although it was designed to facilitate administration, many Hungarians interpreted this language ruling to be a threat to their entire culture and spoke out enthusiastically against it. To add to the Hungarians' horror, Joseph refused to submit to a coronation in Hungary lest he have to swear to uphold laws that he did not wish to, and then he had the sacred crown of the kingdom moved to Vienna.

      By 1787 resistance to Joseph and his government was intensifying. One Habsburg possession that had escaped reforms during the reign of Maria Theresa and Joseph was the Austrian Netherlands, which ruled itself under its own laws. In January and March 1787 Joseph simply swept away the constitution of the Austrian Netherlands and announced that from then on it would be ruled according to absolutist principles, just like the other provinces of the monarchy. Resistance simmered in the Austrian Netherlands until 1789, when it boiled over into open revolt, forcing the administration there to flee to safety in the duchy of Luxembourg. By that time there also were rumours of rebellion in Hungary and in Galicia, and for a period it appeared as if revolution might erupt in many parts of the monarchy.

      Joseph's reforms might not have generated as much opposition had it not been for his foreign policy. Joseph was not especially aggressive in foreign affairs, but he did follow the anti-Prussian advice of his and his mother's old chancellor, Kaunitz (Kaunitz, Wenzel Anton von), and that advice ended in misfortune. Kaunitz firmly believed that Austria could check Prussia only with the help of Russia. Consequently, in 1781 he and Joseph negotiated with Catherine the Great (Catherine II) a pact that provided for Russian help for Austria in case of war with Prussia. In exchange, Austria promised to help Russia in case of war with the Ottoman Empire. Confident of her diplomatic and military strength, Catherine then engaged in a series of provocations toward the Turks that resulted in 1787 in a declaration of war (Russo-Turkish wars) by the sultan. Although Joseph had no real desire to participate in this war, his treaty obligations with Russia required him to do so. At first the war went poorly. In 1788 the Austrians waited for the Russians to take the offensive in Romanian lands—which they failed to do—only to be themselves attacked by the Turks and sent scurrying north from the Danube in an effort to reconsolidate their lines. Joseph himself was present on this campaign, which did no one any good. He could not inspire his officers to be more aggressive, and he became quite ill, so much so that he returned to Vienna in late 1788 in an effort to recover. The campaign in 1789 went much better, resulting in the Austrian conquest of the important fortress of Belgrade at the confluence of the Sava and Danube rivers and in a joint Austro-Russian offensive in Moldavia and Walachia that drove the Turks all the way to the Danube.

      But by this time all the unfortunate consequences of Joseph's domestic and foreign policies were bearing down on him. The war itself caused an outpouring of popular agitation against his foreign policy, the people of the Austrian Netherlands rose in outright revolution, and reports of trouble in Galicia increased. Finally, it was Hungary that broke Joseph's spirit. In 1788 he had to convoke the old county assemblies to ask for recruits and supplies to fight the war. The noblemen who made up these assemblies replied with protests and demands that the old constitution be restored and that Joseph submit to coronation in the traditional Hungarian manner. Even the Hungarian chancellery, the ministry in the central government in charge of Hungarian affairs, recommended that Joseph yield to these wishes of his constituents.

      Faced with these difficulties, Joseph revoked many of the reforms that he had enacted earlier. In a letter of January 1790 he emphasized his good intentions in enacting his new laws in Hungary and then revoked all of them except the Edict of Toleration, the laws related to the status of peasants, and the monastic reforms. He agreed to call the Hungarian Diet—but not too soon, given the dangerous international situation—and he consented to return the crown to Hungary and to his own coronation as that country's king. The crowning never came to pass, however, for Joseph died the following month.

Conflicts with revolutionary France, 1790–1805
      Joseph was succeeded by his younger brother, Leopold II. Leopold's reign (1790–92) was a short one, which many believe was quite unfortunate for the Habsburg monarchy because, had he lived, he might have been able to salvage many of Joseph's reforms. In addition, evidence indicates that he planned to introduce a measure of popular representation into the Habsburg government that might have given the monarchy greater stability as it encountered the challenges of industrialization, nationalism, liberalism, and democracy that became increasingly compelling in the next century.

      Prior to his accession, Leopold had gained a considerable reputation as an enlightened prince of the Italian state of Tuscany, a land ruled directly by Maria Theresa's husband and then passed to the second Habsburg son (secundogeniture). When he became emperor, Leopold saw as his primary task ending the war with the Turks as quickly as possible. That, he believed, would relieve a great deal of the strain in domestic matters so that he could slowly implement a reform program of his own.

      By the time of Leopold's accession, the Turkish war had become somewhat complicated—not in a military sense but in a diplomatic one. In 1788 Prussia and Great Britain had formed a coalition to put pressure on Austria and Russia to conclude the war with little or no compensation. This pressure carried with it the threat of war if the two eastern empires did not comply. In 1789 Joseph had wanted to reach such an agreement, but he could not convince Kaunitz to do so, and Kaunitz still had great influence. Leopold, however, did not hesitate to cast aside the old chancellor's advice. Two weeks after he reached Vienna, Leopold notified the king of Prussia that he sought an accommodation based on the status quo ante, an accommodation reached in April 1790. The war was effectively over, although peace with the Turks was not concluded until August 1791 (Treaty of Sistova). (See also Jassy, Treaty of.)

      Initially Leopold accepted the cancellation of many of Joseph's reforms and the increasing authority of the secret police under the guidance of Johann Anton, Graf (count) Pergen. But soon the new emperor began to twist this apparent reaction into something far more progressive. In 1790 and 1791 there came to him a number of petitions from the lower classes of society demanding redress of various grievances. Leopold welcomed these petitions and began to cite them as reasons for introducing some changes in the nature of government, including providing greater representation for the lower orders in the provincial diets and placing the police under the rule of the law, a proposal that caused Pergen to resign. In fact, Leopold adopted a proposal of Joseph von Sonnenfels, an official often considered the leading enlightened political theorist in the monarchy, to make the police a service institution rather than an instrument of control. He put them in charge of local health measures and authorized them to settle minor disputes so that people would not have to go to law courts with petty arguments.

      Apparently, in early 1792 Leopold was beginning to take steps to extend representation in the provincial diets to virtually all classes in society. Clearly he did not intend to establish a constitutional monarchy, but he believed that, by drawing the nonprivileged classes into the government, he could check the resistance of the privileged classes and at the same time create a constituency that would support an improved kind of enlightened absolutism. Whatever he had in mind, however, did not come to pass, for he died prematurely on March 1, 1792.

      Succeeding Leopold was his much less able but longer-lived eldest son, Francis II (known as Holy Roman Emperor Francis II until 1806 and as Francis I, emperor of Austria, from 1804 to 1835). Francis's foremost problem was significantly different from those that had faced his father and uncle. The domestic situation was settled again, but foreign matters had become increasingly perilous owing to events in France. The French Revolution had erupted in the summer of 1789, and the initial Austrian policy had been essentially to leave France alone. Indeed, Leopold had at first made some approving remarks about the changes in France, and Kaunitz had noted that at least France would not be a serious force in international affairs for some time. The event that changed these passive responses was the flight to Varennes, when King Louis XVI and his wife, Marie-Antoinette (the youngest daughter of Maria Theresa and therefore sister of Joseph and Leopold and aunt of Francis), fled Paris in June 1791 for the safety of the Austrian Netherlands. They reached the French border town of Varennes, where they were recognized and placed under arrest; later they were returned to Paris.

      The flight to Varennes proved to monarchical Europe that, despite protestations to the contrary, the French king did not approve the course of the revolution and in fact had become a prisoner of it. As a result, Leopold and King Frederick William II of Prussia issued a joint declaration (the Declaration of Pillnitz, August 1791) expressing concern about the developments in France. The French government, now acting without the king, interpreted this declaration as a threat to its sovereignty and responded with a series of provocations—answered in kind by Austria and Prussia—that led to a French (French revolutionary and Napoleonic wars) declaration of war on Austria in April 1792.

      The declaration of war inaugurated a period of 23 years of almost continuous conflict (or preparation for conflict) between Austria and France (see French revolutionary and Napoleonic wars). During that time Austria and France fought five wars for a total of 14 years, and Austria lost all of them but the last. At one time (1809–12), Austria was stripped of all its Italian possessions, the Austrian Netherlands, its western German lands, its access to the Adriatic Sea, and the portion of Poland that it had acquired in the Third Partition in 1795 (see Poland, Partitions of). In 1804 Francis added to his titles that of emperor of Austria, but he did so because he anticipated being stripped of his most venerated title of Holy Roman emperor, which he indeed was in 1806 at the insistence of Napoleon I (who had had himself declared emperor of France in 1804). French armies occupied Vienna twice, and in 1810 the Habsburgs had to endure the indignity of giving the hand of one of Francis's daughters, Marie-Louise, to Napoleon in marriage.

      For the first two wars, that of the First Coalition (1792–97) and that of the Second Coalition (1799–1800), Austrian policy was guided by Franz Maria, Freiherr (baron) von Thugut, the only commoner to reach the rank of minister of foreign affairs in the history of the Habsburg monarchy. Thugut was an experienced diplomat and knew France very well, and he was convinced that the French Revolution represented a threat to the traditional European powers less in ideological terms than in terms of pure military might. He believed that the revolution had somehow reinvigorated an almost moribund French state and had resurrected its military power to a surprising—and dangerous—degree. Therefore, he looked upon the war against Revolutionary, and later Napoleonic, France as akin to the wars against France in the time of Louis XIV. In other words, what was required was a coalition of the great and small European powers to resist what was fundamentally French aggression.

      Regardless of his interpretation of the France he was fighting, his efforts ended in failure. In the War of the First Coalition, both Prussia and Spain dropped out in 1795, and for the next two years Austria carried the brunt of the struggle with some help from Britain. In 1797 serious defeats at the hands of the young Napoleon Bonaparte in Italy forced Austria to seek peace. By the Treaty of Campo Formio (Campo Formio, Treaty of) (October 1797), Austria gave up the Austrian Netherlands and Lombardy but acquired much of Venice.

      Thugut was convinced that war would begin again soon, and for the next one he secured Russia as an ally. The War of the Second Coalition began in 1799 when Bonaparte was in Egypt and the French government was in crisis, and it looked for a time as if the Austro-Russian forces would win. However, a terrible defeat inflicted upon the coalition in Switzerland, followed by recrimination and blame heaped upon each ally by the other, resulted in Russia's leaving the alliance as the campaign of 1799 ended. Thugut convinced Francis to continue the struggle, which ended in significant Austrian defeats at Marengo (Marengo, Battle of) in Italy and at Hohenlinden in Germany in 1800 and in the ouster of Thugut himself in early 1801. Austria sued for peace, which came in the Treaty of Lunéville (February 1801), by which Austria agreed to the cession of the left bank of the Rhine to France (originally a provision of the Treaty of Campo Formio) and recognized French domination of the Austrian Netherlands, Switzerland, and Italy.

      From 1801 to 1805, the Austrian government again focused on internal reform, especially in finances. The ongoing wars had cost a great deal of money, and the debt had risen to an astonishing degree. However, most of the expenses of the wars had been paid for by printing paper money, massive amounts of which were in circulation by 1801. Most merchants had accepted this paper money at face value during much of the 1790s, and there is evidence that some of it was invested in technology and industry, suggesting that Austria enjoyed at this time its first hint of industrial revolution. Unfortunately, by 1801 merchants were doubting the value of the currency they received, and inflation assumed serious proportions. From 1801 to 1805 many proposals were advanced to reduce the debt and curb inflation, but none succeeded in doing so.

      The other major area of reform was military, and here hope for success seemed higher because the genuine Austrian military hero of the time, Archduke Charles (Charles, Archduke), brother of the emperor, undertook the task of improving the armed forces. He reduced the time of service for all ranks, curbed harsh disciplinary measures, and introduced a number of administrative changes. Yet he firmly believed that an army of long-serving and well-drilled enlisted men was the key to success, and he did not advocate the introduction of the draft that had led to such an incredible increase in the size of the French armies since 1794.

Conflicts with Napoleonic France
      When the Austrians took the field against the French in 1805, the army was still inadequately equipped, insufficiently trained, under strength, and indifferently led. The war itself had come about owing to miscalculations by the foreign ministers, who firmly believed that an alliance with Russia in late 1804 would deter rather than encourage Napoleon from attacking either of the eastern empires. Napoleon had gathered his major force along the French Atlantic coast for a possible invasion of Great Britain, and the Austrian statesmen believed that, even should they receive news that Napoleon was marching east, the Austrian and Russian armies could easily unite before he could bring his forces to central Europe.

      They were wrong. In one of his most brilliant strategic moves, Napoleon marched his army quickly into Germany (and not into Italy, where the Austrians had anticipated he would go and where Archduke Charles had collected the largest Habsburg force). Napoleon surrounded an Austrian army at the city of Ulm, compelled it to surrender (see Ulm, Battle of), and advanced to Vienna itself, which he took in November 1805. He then moved into Moravia, to Vienna's northeast, where he met a remnant of the Austrian army and the oncoming Russians. He defeated both at the famous Battle of Austerlitz (Austerlitz, Battle of) on Dec. 2, 1805. Austria concluded peace immediately (Treaty of Pressburg (Pressburg, Treaty of), Dec. 26, 1805), while Russia continued the war. In this treaty Austria gave up Venice to Napoleon's Italian kingdom, Tirol to Bavaria, and a number of other lands to Napoleon's clients. It did receive the former archbishopric of Salzburg (secularized in 1803); however, this territory would come under French administration (1809–10) and then Bavarian rule (1810–15) before finally becoming a permanent part of Austria after the Napoleonic Wars.

      The next period of peace, 1806–09, again saw Austrian preparations for war, this time directed by a Rhineland German in Habsburg service, Johann Philipp, Graf (count) von Stadion (Stadion, Johann Philipp, Graf von). Like others before him, Stadion believed that Austria could not make any long-term accommodation with Napoleon because he represented a mortal danger to monarchical Europe. He believed also that Napoleon could be defeated only by large armies, which he regarded as the secret to France's success. He thus proposed that the Austrians raise large armies, but he knew that the monarchy could not finance increases in the kind of armies that it had used in the past. Therefore, he proposed to supplement the regular troops with trained reserves and militia.

      Stadion also realized, however, that, while costing less than long-serving regulars, reserves and militiamen needed reasons to fight. Consequently, he initiated martial appeals of various kinds tailored to various elements of society. The most famous of these was an appeal to nationalism, especially German nationalism. Some scholars point out the irony that the first official appeals to modern German nationalism came from the Habsburg government, which would be the primary foe of German nationalism in the 19th century and in some ways the victim of it in the 20th. But the Habsburg government under Stadion's direction did not limit its appeals to German nationalism to inspire its militia. It issued calls to patriotism, love of the emperor, provincialism, and xenophobia, plus appeals to Czechs, Slovenes, Hungarians, and Poles. Often the inspirational appeals to non-Germans were simply translations of the appeals to Germans with the appropriate words replaced with references to the correct national group.

      In any case, it was for naught. Inspired by the popular resistance of the Spanish people to Napoleon, Stadion appealed to his own people in 1809 to go to war. The declaration came in April, and the French army occupied Vienna in May. However, on May 21–22, at Aspern, across the Danube from Vienna, Archduke Charles and the regular Austrian army inflicted the first defeat Napoleon was to suffer on the field of battle. They did not take advantage of it, however; Napoleon regrouped and defeated Archduke Charles in July in the Battle of Wagram (Wagram, Battle of), just a few miles from Aspern. At the Treaty of Schönbrunn (Schönbrunn, Treaty of) (October 1809), the monarchy surrendered considerably more territory but at least remained in existence.

 After 1809, foreign policy and to some extent domestic policy passed into the hands of Klemens, Graf von Metternich (Metternich, Klemens, Fürst von) (later given the title of Fürst [prince]), who would steer the monarchy's ship of state for the next 40 years. Unlike his predecessors in charge of foreign policy, Metternich believed that the only hope for the continued existence of the monarchy was to seek accommodation with Napoleon. It was he who arranged the marriage of Marie-Louise, and it was he who convinced Francis to send troops to take part in Napoleon's invasion of Russia in 1812.

      Even when Napoleon suffered his thunderous defeat in Russia, Metternich was by no means eager to join his former allies in pursuing the defeated French. The main reason was that by this time Metternich had come to the conclusion that the key to the future security of the monarchy was not the restoration of the Europe of 1789 but rather the creation of an effective balance of power among the great European states. In his view, a completely victorious Russia would be just as great a threat to Austria as a completely victorious France. His goal was to arrange an agreement between Russia and Napoleonic France that would establish each one as a counterweight to the other while restoring an independent Habsburg monarchy and Prussia between them. Metternich sought this goal through the first half of 1813, but Napoleon would agree to no concessions. So in August 1813, Austria formally declared war on France.

      In the ensuing War of Liberation, Austria assumed the leading role. It provided the greatest number of troops to the allied forces, in addition to their commander, Karl Philipp, Fürst zu Schwarzenberg (Schwarzenberg, Karl Philipp, Prince zu), and his brilliant staff officer, Joseph, Graf Radetzky (Radetzky, Joseph, Graf). Metternich, however, never sought to vanquish Napoleon utterly, because he still distrusted Russian ambition as much as he did that of the French. He could never convince Napoleon to accept his views, however, and Austria in the end took part in Napoleon's defeat and exile to the island of Elba in 1814.

      In September 1814 the congress to conclude the quarter century of war gathered in Vienna (Vienna, Congress of) under Metternich's chairmanship. In terms of territory, Metternich gladly relinquished claims to the old Austrian Netherlands and the various Habsburg possessions in Germany for a consolidated monarchy at the centre of Europe. Austria regained its lands on the Adriatic and in the area that is now Austria, which it had previously lost, and it won considerable territory in Italy, including Lombardy, Venetia, Tuscany, and Modena.

      But in Germany Metternich worked his greatest magic. He had no intention of restoring the old Holy Roman Empire but wished to create instead a system that could defend itself against both France and Russia and keep Prussia under control. His solution was the German Confederation, a body comprising 35 states and 4 free cities, with Austria assuming the presidency. Such an institution, in Metternich's eyes, would give Austria far more influence in Germany than it had had under the old Holy Roman Empire.

      While Metternich arranged central Europe as best he could, the four victorious powers—Austria, Prussia, Russia, and Great Britain—pledged to maintain the peace settlement, thereby establishing what is known as the Concert of Europe (Europe, Concert of). Moreover, each monarch in Europe pledged allegiance to a Christian union of love, peace, and charity. This “ Holy Alliance” was the brainchild of Alexander I of Russia; Metternich knew that it was little more than sentiment, but he welcomed it as a statement he could exploit to persuade other monarchs to do his bidding. With the end of the Congress of Vienna (Vienna, Congress of), Metternich became the “coachman of Europe” and would remain so for some time.

The Age of Metternich (Metternich, Klemens, Fürst von), 1815–48
 The 33 years after the end of the Napoleonic Wars are called in Austria—and to some extent in all of Europe—the Age of Metternich. The chief characteristics of this age are the onset of the Industrial Revolution, an intensification of social problems brought on by economic cycles of boom and bust, an increasingly mobile population, more demands for popular participation in government, and the rising tide of nationalism, all watched over by governments intent upon preserving the social, political, and international status quo.

      Metternich was the symbol of those forces eager to preserve the status quo. In the debate about his policies, some have argued that Metternich was little more than an oppressive, reactionary but opportunistic statesman, eager to snuff out sparks of revolution and liberalism wherever he could detect them. Moreover, his much vaunted direction of the other powers in preserving the European order was really a mask for maintaining Habsburg influence in international affairs far out of proportion to the power that the monarchy actually possessed. Others contend that Metternich was one of the first philosophical conservatives, basing his social and political policies on coherent principles of orderly and cautious change in the context of good government and his diplomatic policies on maintaining stability by convincing the great powers of their mutual interests in preserving the European order as it then existed.

      In international affairs, Metternich's Concert of Europe did not last long. Within a few years after the Congress of Vienna, it had become clear that the five great powers simply did not have sufficiently similar interests or goals to cooperate on every issue that came before them. After European congresses at Troppau, Laibach, and Verona (1820–22) granted permission to Austria to deal with revolutions in Italy and to France to do the same in Spain, Britain announced its withdrawal from the Concert of Europe, proclaiming that it wanted no more to do with the conservative Continental powers. Likewise, a revolution in France in 1830 weakened that country's link to Metternich's system, and he even had trouble with Russia, which was greatly upset by Ottoman persecution of Orthodox Christians during the movement for Greek independence (1821–30). (See also Troppau, Congress of; Laibach, Congress of; Verona, Congress of; July Revolution; Greek Independence, War of.)

      In domestic matters, Metternich may have desired good government, but his reputation as an oppressor gained considerable credence after 1815. Protests against conservative policies by a gathering of German students (at the Wartburg Festival) in 1817 and the assassination of a conservative playwright (August von Kotzebue (Kotzebue, August von)) in 1819 led, under Metternich's guidance, to the German Confederation's adopting the Carlsbad Decrees, a set of laws placing German and Austrian universities under strict control. Harsh censorship was imposed, and a commission was established at Mainz to investigate all student societies for subversives. Teachers, writers, and students suspected of liberal views were blacklisted throughout Germany and Austria. In 1824 the German Federal Diet renewed these provisions for an indefinite period and in 1832 and 1833 expanded them at Metternich's behest.

      Metternich's name was also equated with suppressing liberalism and radicalism in Italy. In 1821 Austrian troops put down risings in Naples and Piedmont; in 1831 rebellions in Parma, Modena, and the Papal States likewise ended in suppression by Austrian soldiers. The Austrian regime became the nemesis of the Carbonari (Carbonaro) and Young Italy, two movements associated with Italian nationalism and republicanism that were enormously popular among educated Italians.

      Whereas Metternich's name is often equated with oppression, he in fact was not eager to impose harsh and unrelenting rule in his own state or in others. Metternich believed that the best government was absolutism but that it was best because it guaranteed equal justice and fair administration for all. In the Habsburg monarchy and in the Italian governments he saved from revolution, he advocated reforms that would provide good government for the people. In many places his appeals went unheeded—in the Papal States, for example—and even in Austria his influence in domestic affairs weakened considerably as time went on. In 1826 Emperor Francis appointed Franz Anton, Graf (count) von Kolowrat (Kolowrat, Anton, graf von), minister of state, and he steadily reduced Metternich's influence in internal policy. In 1835 Francis died and was succeeded by his son Ferdinand (Ferdinand (I)), whose feeblemindedness necessitated the creation of a “state conference” to rule the monarchy. It consisted of two of Ferdinand's uncles and his brother, along with Kolowrat and Metternich, as permanent members. High policy tended to drift, because the two archdukes were nonentities and Kolowrat and Metternich were usually at odds with one another.

      While Metternich and his colleagues focused most of their attention on political activity, the monarchy was by no means standing still in economic and social matters. By the 1820s Austria was experiencing its first sustained industrial (Industrial Revolution) development. While many have regarded Austria's exclusion from the Zollverein, the German customs union created by Prussia in the 1820s and '30s, as permanently retarding Austria's economic advancement, in fact, by the 1840s, Austrian production of pig iron, coal, cotton textiles, woolens, and foodstuffs was growing at a faster rate than that of the Zollverein. Advocates of political liberalism may have suffered at this time, but those of economic liberalism were gaining ground. After Francis's death in 1835, practically all restrictions on new enterprises, especially those engaged in commerce, were lifted.

      Most people still lived on the land, but even there changes were under way. As growing cities created markets for more and more agricultural goods, producers began to focus on agriculture for profit instead of for subsistence. Along with industrial crops such as sugar beets and flax, old crops such as wheat, vegetables, wine, and livestock were grown more and more for the commercial market. The social impact of these changes in agriculture became starkly apparent in 1848, when the final abolition of serfdom was encouraged by some of the landholding nobility, who were relying more and more on wage labour to work their estates and no longer wanted the obligations associated with having serfs.

      Aiding these new economic efforts were the beginnings of an Austrian infrastructure of railroads and water transport. The first railroad on the European Continent appeared between Linz (Austria) and Budweis (now Ceské Budejovice (České Budějovice), Cz.Rep.); it was a horse-drawn railway between the Danube and the Moldau (Vltava (Vltava River)) rivers, which in fact was a connection between the Danube and the Elbe (Elbe River) river systems. In 1836 work began on a steam railway heading north from Vienna, and by 1848 the monarchy contained more than 1,000 miles (1,600 km) of track. Canals were not a feature of Habsburg transportation because of poor terrain, but steam navigation began on the Danube in 1830 and expanded quickly.

Revolution and counterrevolution, 1848–59 (1848, Revolutions of)
      The year 1848 was a time of European-wide revolution. A general disgust with conservative domestic policies, an urge for more freedoms and greater popular participation in government, rising nationalism, social problems brought on by the Industrial Revolution, and increasing hunger caused by harvest failures in the mid-1840s all contributed to growing unrest, which the Habsburg monarchy did not escape. In February 1848, Paris, the archetype of revolution at that time, rose against its government, and within weeks many major cities in Europe did the same, including Vienna. (See 1848, Revolutions of.)

      As in much of Europe, the revolution of 1848 in the Habsburg monarchy may be divided into the three categories of social, democratic-liberal, and national, but outside Vienna the national aspect of the revolution fairly soon overshadowed the other two. On March 13, upon receiving news of the Paris rising, crowds of people, mostly students and members of liberal clubs, demonstrated in Vienna for basic freedoms and a liberalization of the regime. As happened in many cities in this fateful year, troops were called out to quell the crowds, shots were fired, and serious clashes occurred between the authorities and the people. The government had no wish to antagonize the crowds further and so dismissed Metternich, who was the symbol of repression, and promised to issue a constitution.

      From that beginning to the end of October 1848, Vienna ebbed and flowed between revolution and counterrevolution, with one element or another gaining influence over the others. In mid-May the Habsburgs and their government became so concerned about the way matters were going that they fled Vienna, although they did return in August when it appeared that more-conservative elements were asserting control. The emperor issued a constitution in April providing for an elected legislature, but when the legislature met in June it rejected this constitution in favour of one that promised to be more democratic. As the legislature debated various issues over the summer and autumn, the Habsburgs and their advisers regrouped both their confidence and their might, and on October 31 the army retook Vienna and executed a number of the city's radical leaders. By this time the legislature had removed itself to Kremsier (now Kromeríz (Kroměříž), Cz.Rep.) in the province of Moravia, where it continued to work on a constitution. It finished its work there, issued its document, and was promptly overruled and then dismissed by the emperor.

      Although the assembly in the end did not create a working constitution for Austria, it did issue one piece of legislation that had long-lasting influence: it fully emancipated the peasantry (peasant). The conservative regime that followed kept and implemented this law.

      In other parts of the monarchy, the revolution of 1848 passed quickly through a liberal-democratic to a national phase, and in no place was this more evident or more serious than in Hungary. Joseph II's effort to incorporate Hungary more fully into the monarchy, along with the early 19th century's rising national awareness throughout Europe, had a profound impact upon the aristocratic Hungarians who held sway in the country. Modern nationalism made them even more intent on preserving their cultural traditions and on continuing their political domination of the land. Consequently, after 1815 the Hungarian nobility engaged in a number of activities to strengthen the Hungarian national spirit, demanding the use of Hungarian rather than Latin as the language of government and undertaking serious efforts to develop the country economically. The revolution in Paris and then the one in Vienna in March 1848 galvanized the Hungarian Diet. Under the leadership of a young lawyer and journalist named Lajos Kossuth (Kossuth, Lajos), the Hungarian Diet demanded of the sovereign sweeping reforms, including civil liberties and far greater autonomy for the Hungarian government, which would from then on meet in Pest (Buda and Pest were separate cities until 1873, when they officially merged under the name Budapest). Under great pressure from liberal elements in Vienna, the emperor acceded to these wishes, and the Hungarian legislators immediately undertook creating a new constitution for their land.

      This new constitution became known as the March Laws (or April Laws (March Laws)) and was really the work of Kossuth. The March Laws provided for a popularly elected lower house of deputies, freedom for the “received religions” (i.e., excluding Jews), freedom of the press, peasant emancipation, and equality before the law. As the Hungarians set up their new national government based on these principles, they encountered from some of the minority nationalities living in their land the kind of resistance they had offered the Austrians. A characteristic of the new regime was an intense pride in being Hungarian, but the population in the Hungarian portion of the Habsburg monarchy was 60 percent non-Hungarian. And in 1848 all the talk about freedom and constitutions and protection of one's language and culture had inspired many of these people as well. But Kossuth and his colleagues had no intention of weakening the Hungarian nature of their new regime; indeed, they made knowledge of Hungarian a qualification for membership in parliament and for participation in government. In other words, the new government seemed as unsympathetic to the demands and hopes of its Serbian, Croatian, Slovak, and Romanian populations as Vienna had been to the demands of the Hungarians.

      In March 1848 the Habsburgs made an appointment that would lead to war with the Hungarians; they selected as governor of Croatia Josip, Graf (count) Jelačić (Jelačić, Josip, Graf), well known for his devotion to the monarchy, for his dislike of the “lawyers' clique” in Pest, and for his ability to hold the South Slavs (Slav) in the southern portion of the monarchy loyal to the crown. Jelačić did not disappoint Vienna. One of his first acts was to reject all authority over Croatia by the new Hungarian government, to refuse all efforts by that government to introduce Hungarian as a language of administration, and to order his bureaucrats to return unopened all official mail from Pest. He also began negotiations with the leadership of the Serbs to resist Hungarian rule together.

      From April to September 1848 the Hungarian government dealt with its minority nations and with the government in Austria on even terms, but then relations began to deteriorate. The return of the Habsburgs to Vienna in August, the more conservative turn in the government there that the return reflected, and Austrian military victories in Italy in July prompted the Habsburg government to demand greater concessions from the Hungarians. In September, military action against Hungary by Jelačić and his Croats prompted the Hungarian government to turn power over to Kossuth and the Committee of National Defense, which immediately took measures to defend the country. What then emerged was open warfare between regular Habsburg forces and Jelačić on the one hand and the Hungarians on the other.

      The war was a bloody affair, with each side dominating at one time or another. In April 1849 the Hungarian government proclaimed its total independence from the Habsburgs, and in that same month the Austrian government requested military aid from Russia, an act that was to haunt it for years to come. Finally, in August 1849, the Hungarian army surrendered, and the land was put firmly under Austrian rule. Kossuth fled to the Ottoman Empire, and from there for years he traveled the world denouncing Habsburg oppression. In Hungary itself many rebel officers were imprisoned, and a number were executed.

      A second serious national rising occurred in Italy. Since 1815 many Italians had looked upon the Habsburgs as foreign occupiers or oppressors, so when news of revolution reached their lands, the banner of revolt went up in many places, especially Milan and Venice. Outside the Habsburg lands, liberal uprisings also swept Rome and Naples. In Habsburg Italy, however, war came swiftly. In late March, answering a plea from the Milanese, the kingdom of Sardinia, the only Italian state with a native monarch, declared war on the emperor and marched into his lands.

      The Habsburg government in Austria was initially willing to make concessions to Sardinia, but it was strongly discouraged from doing so by its military commander in Italy, the old but highly respected and talented Field Marshal Radetzky (Radetzky, Joseph, Graf), who had been the Austrian chief of staff in the war against Napoleon in 1813–14. In July 1848 Radetzky proved the value of his advice by defeating the Sardinians at Custoza, a victory that helped restore confidence to the Habsburg government as it faced so many enemies. Radetzky reimposed Habsburg rule in Milan and Venice, and in March 1849 he defeated the Sardinians once again when they invaded Austria's Italian possessions. (See Custoza, battles of.)

      Besides the Hungarians and the Italians, the Slavic (Slav) peoples of the monarchy also responded to the revolutionary surge, although with less violence than the other two. In June 1848 a Pan (Pan-Slavism)-Slav congress met in Prague to hammer out a set of principles that all Slavic peoples could endorse (see Pan-Slavism). The organizer of the conference was the great Czech historian František Palacký (Palacký, František) (most of the delegates were Czech), who not only had called for the cooperation of the Habsburg Slavs but also had endorsed the Habsburg monarchy as the most reasonable political formation to protect the peoples of central Europe. Upon being asked by the Germans to declare himself favourably disposed to their desire for national unity, he responded that he could not do so because it would weaken the Habsburg state. And in that reply he wrote his famous words: “Truly, if it were not that Austria had long existed, it would be necessary, in the interest of Europe, in the interest of humanity itself, to create it.”

      Unfortunately, the Pan-Slav congress met in a highly charged atmosphere, as young inhabitants of Prague likewise had been influenced by revolutions elsewhere and had taken to the streets. In the commotion, a stray bullet killed the wife of Field Marshal Alfred, Fürst (prince) zu Windischgrätz (Windischgrätz, Alfred, Fürst zu), the commander of the forces in Prague. Enraged, Windischgrätz seized the city, dispersed the congress, and established martial law throughout the province of Bohemia.

      The Germans themselves also experienced a certain degree of national fervour, but in their case it was part of a general German yearning for national unification. Responding to calls for a meeting of national unity, in May 1848 delegates from all the German states met at Frankfurt (Frankfurt National Assembly) to discuss a constitution for a united Germany. Made up primarily of the commercial and professional classes, this body was indeed distinguished and was looked upon by the German princes as an important gathering. To prove its respect for tradition, the Frankfurt parliament selected the emperor's uncle, Archduke Johann, as head of a provisional executive power and in September selected another Austrian, Anton, Ritter (knight) von Schmerling, as prime minister.

      Despite this deference to Austria's prominent men, a major question the parliament addressed was whether to include Austria in the new Germany. Those who favoured doing so argued that a new Germany could accept the German-speaking provinces of the monarchy but not the non-German lands (the Grossdeutsch, or large German, position). Those against contended that the Austrian monarchy could never divide itself along ethnic lines and so favoured the exclusion of Austria altogether (the Kleindeutsch, or small German, position). Implicit in the latter position was that the new Germany would be greatly influenced if not dominated by Prussia, by far the most important German state next to Austria. In October 1848 the delegates agreed to invite the Austrian German lands to become part of the new Germany, but only if they were disconnected from non-German territory. This so-called compromise was really a victory for the Kleindeutsch supporters, who knew that the Austrian government would reject the invitation because it would never willfully break the monarchy apart.

      In the end neither position prevailed, because the Frankfurt parliament was unable to unify Germany. All the German states finally rejected its proposals, and in April 1849 it dissolved. Nonetheless, it had created the impression that, when the new Germany did emerge, it would do so under the aegis of Prussia and with the exclusion of Austria.

Neoabsolutist era, 1849–60
      All things considered, the revolution across the empire had not accomplished much. Absolutism seemed firmly entrenched, and the political clock seemed to have been set back to the 18th century. And yet a regime so badly shaken as Austria's could not hope to rule unchallenged in the future. The unresolved social, constitutional, and national issues became more intense, and new changes were soon in the offing.

 The period 1849–60 is called the Neoabsolutist era because it was the last effort by an Austrian emperor to provide good government by relying solely on bureaucratic effectiveness. In doing so, it was the legitimate descendant of the governments of Joseph II and Metternich. The emperor in this case was Francis Joseph, who in December 1848 had succeeded at the age of 18 to the throne in a deal engineered by Felix, Fürst (prince) zu Schwarzenberg (Schwarzenberg, Felix, Prince zu), an able and iron-willed opponent of the 1848 revolutionaries and a proponent of strong central government. Francis Joseph had not been the heir, but Schwarzenberg contended that too many promises to revolutionaries had been made in the name of Ferdinand and the true heir, Francis Joseph's father, Francis Charles, and so only his son could rule without making compromises. Francis Joseph thus became emperor and ruled for the next 68 years, dying in the midst of World War I at the age of 86.

      Under Francis Joseph and Schwarzenberg, order was restored. Schwarzenberg died in 1852, and the new regime passed largely to the direction of Alexander, Freiherr (baron) von Bach, minister of the interior and a competent bureaucrat. Despite its reputation as a repressive instrument, Bach's government was not without positive accomplishments. It established a unified customs territory for the whole monarchy (including Hungary), composed a code for trades and crafts, completed the task of serf emancipation, and introduced improvements in universities and secondary schools. In this period, economic growth continued its slow but steady pace, which had characterized the monarchy before 1848 and would continue to do so after 1860.

      The regime's policies on other matters were more typically reactionary. Freedom of the press as well as jury and public trials were abandoned, corporal punishment by police orders restored, and internal surveillance increased. The observation of the liberal reformer Adolf Fischhof (Fischhof, Adolf) that the regime rested on the support of a standing army of soldiers, a kneeling army of worshippers, and a crawling army of informants was exaggerated but not entirely unfounded. One of the more backward developments was the concordat reached with the papacy that gave the church (church and state) jurisdiction in marriage questions, partial control of censorship, and oversight of elementary and secondary education. Priests entrusted with religious education in the schools had the authority to see to it that instruction in any field, be it history or physics, did not conflict with the church's teachings.

      The neoabsolutist regime came to an end because of its foreign policy. In the mid-1850s the matter that dominated the foreign offices of the European states was the Crimean War, a struggle that pitted an alliance system of Britain, France, the Ottoman Empire, and the Kingdom of Sardinia against Russia. Since the mid-18th century, Austrian statesmen had generally agreed that it was better to have as the monarchy's southeastern neighbour a weak Ottoman Empire than any strong power—especially Russia. So, in this war the monarchy declared its neutrality but also insisted that Russia not advance into the Ottoman provinces of Moldavia and Walachia, which lay to the east of the Austrian Empire. This policy had two deleterious results: it alienated Russia, which had helped the monarchy put down the Hungarian revolution, and it did not befriend France, which would in 1859 support Sardinia in its war of Italian unification against the Austrians.

      It was the Austro-Italian war of 1859 that humiliated Austria and ended Bach's system. First securing support from Napoleon III of France, Sardinia provoked a woefully unprepared Austria into war and then invited France to come to the Italian kingdom's assistance. The Austrians suffered two major defeats at Magenta and Solferino (Solferino, Battle of) and concluded peace. The monarchy gave up Lombardy and kept Venetia, but, more important, it lost its influence in Italy. The Habsburgs had no say in the events of 1860 and 1861 that led to the proclamation of a unified Italy under the rule of the kings of Sardinia. (See also Risorgimento.)

Constitutional experimentation, 1860–67
      Internally, the defeats in Italy convinced Francis Joseph that neoabsolutism had failed. Clamour for economic, political, and even military rejuvenation became irresistible. In March 1860 Francis Joseph ordered that the Reichsrat, an empirewide, purely advisory council of state, be enlarged by the addition of 38 members proposed by the provincial diets and selected by the crown. Its main task was to advise the emperor on the composition of a new constitution. The body divided into two groups rather quickly. One, made up mostly of German-speaking delegates, wished to create a strong central parliament and to continue to restrict the power of the provincial governments. The other, made up of conservative federalists who were largely Hungarian, Czech, and Polish nobles, wished to weaken the central government and give considerable power to the provinces. The emperor sided with the federalists, who persuaded him to accept their position mainly with historical and not ethnic arguments, and he proclaimed by decree a constitution called the October Diploma (1860). The constitution established a central parliament of 100 members and gave it advisory authority in matters of finance, commerce, and industry. Authority in other internal matters was assigned to the provinces. Foreign policy and military issues remained the domain of the emperor.

      No one was happy with the October Diploma. The German centralists opposed it for giving too much authority to the provinces, and the federalists, particularly the Hungarians, opposed it for not restoring fully the old rights and privileges of the crown lands. Faced with such opposition, Francis Joseph abandoned the Diploma and four months later issued the February Patent (1861), officially a revision of the Diploma. This document provided for a bicameral system: an empirewide house of representatives composed of delegates from the diets and a house of lords consisting partly of hereditary members and partly of men of special distinction appointed for life. Furthermore, a separate parliamentary body for the non-Hungarian lands was established.

      The February Patent restored much authority to the central government and so made the centralists happier, but it only antagonized further the federalists, now led enthusiastically by the Hungarians. Resistance was so great that by 1865 the constitution was considered unworkable, and Francis Joseph began negotiations with the Hungarians to revise it. In the meantime, a form of government by bureaucracy ran the country.

      These constitutional issues received a significant jolt by another failure of Habsburg foreign policy. After the disbandment of the Frankfurt National Assembly in 1849, the German Confederation founded in 1815 had resumed its work, but the question of German unification had not gone away. In 1862 this issue gained an unlikely champion in the appointment of Otto von Bismarck (Bismarck, Otto von) as prime minister of Prussia and later chancellor of the German Empire. Bismarck was a Prussian patriot and a loyal subject of his king. While definitely not a German nationalist, he was determined to extend Prussia's power and authority into the German lands, and he knew that Prussia could expand its influence in Germany only at Austria's expense. From 1862 to 1866 he conducted a remarkably deft foreign policy that succeeded in isolating Austria from possible allies in Europe.

      By exploiting issues in the German Confederation, Bismarck was able in 1866 to force Austria into a position that could only be resolved by war. The conflict is known as the Seven Weeks' War or the Austro-Prussian War. On July 3, 1866, the two armies clashed in this struggle's only major Austro-Prussian battle, the Battle of Königgrätz (Königgrätz, Battle of), or Sadowa as it is known in Austrian histories. Although the battle was hard fought on both sides, the arrival of an extra Prussian force toward the end of the day decided it in favour of Prussia. Afterward, peace came quickly, because neither side wanted the war to continue. As Austria had been excluded from the future of Italy in 1859, so it was now excluded from the future of Germany. The German Confederation came to an end, and Prussia was allowed a free hand in reorganizing northern Germany as it wished (see North German Confederation). Moreover, Italy had joined Prussia against Austria and, although defeated on land and sea, received Venetia, Austria's last possession in Italy, for its loyalty. Internally, the war meant that the government had to reach a constitutional arrangement for the remainder of its possessions.

Karl A. Roider, Jr. Reinhold F. Wagnleitner

Austria-Hungary, 1867–1918
Ausgleich of 1867
      The economic consequences of the defeat in the war of 1866 made it imperative that the constitutional reorganization of the Habsburg monarchy, under discussion since 1859, be brought to an early and successful conclusion. Personnel changes facilitated the solution of the Hungarian crisis. Friedrich Ferdinand, Freiherr (baron) von Beust (Beust, Friedrich Ferdinand, Graf (count) von) (later Graf [count] von Beust), who had been prime minister of Saxony, took charge of Habsburg affairs, first as foreign minister (from October 1866) and then as chancellor (from February 1867). By abandoning the claim that Hungary be simply an Austrian province, he induced Emperor Francis Joseph to recognize the negotiations with the Hungarian politicians (Ferenc Deák (Deák, Ferenc) and Gyula, Gróf [count] Andrássy (Andrássy, Gyula, Count (Gróf))) as a purely dynastic affair, excluding non-Hungarians from the discussion. On Feb. 17, 1867, Francis Joseph restored the Hungarian constitution. A ministry responsible to the Hungarian Diet was formed under Andrássy, and in May 1867 the diet approved Law XII, legalizing what became known as the Ausgleich (“Compromise”). This was a compromise between the Hungarian nation and the dynasty, not between Hungary and the rest of the empire, and it is symptomatic of the Hungarian attitude that led Hungarians to refer to Francis Joseph and his successor as their king and never their emperor.

      In addition to regulating the constitutional relations between the king and the Hungarian nation, Law XII accepted the unity of the Habsburg lands for purposes of conducting certain economic and foreign affairs in common. The compromise was thus the logical result of an attempt to blend traditional constitutional rights with the demands of modern administration. In December 1867 the section of the Reichsrat representing the non-Hungarian lands of the Habsburg empire (known as the engerer Reichsrat) approved the compromise. Though after 1867 the Habsburg monarchy was popularly referred to as the Dual Monarchy, the constitutional framework was actually tripartite, comprising the common agencies for economics and foreign affairs, the agencies of the kingdom of Hungary, and the agencies of the rest of the Habsburg lands—commonly but incorrectly called “Austria.” (The official title for these provinces remained “the kingdoms and lands represented in the Reichsrat” until 1915, when the term “Austria” was officially adopted for them.)

      Under the Ausgleich, both parts of the Habsburg monarchy were constitutionally autonomous, each having its own government and a parliament composed of an appointed upper and an elected lower house. The “common monarchy” consisted of the emperor and his court, the minister for foreign affairs, and the minister of war. There was no common prime minister and no common cabinet. Common affairs were to be considered at the “delegations,” annual meetings of representatives from the two parliaments. For economic and financial cooperation, there was to be a customs union and a sharing of accounts, which was to be revised every 10 years. (This decennial discussion of financial quotas became one of the main sources of conflict between the Hungarian and Austrian governments.) There would be no common citizenship, but such matters as weights, measures, coinage, and postal service were to be uniform in both areas. There soon developed the so-called gemeinsamer Ministerrat, a kind of crown council in which the common ministers of foreign affairs and war and the prime ministers of both governments met under the presidency of the monarch. The common ministers were responsible to the crown only, but they reported annually to the delegations.

      The Ausgleich for all practical purposes set up a personal union between the lands of the Hungarian crown and the western lands of the Habsburgs. The Hungarian success inspired similar movements for the restoration of states' rights in Bohemia and Galicia. But the monarch, who only reluctantly had given in to Hungarian demands, was unwilling to discontinue the centralist policy in the rest of his empire. Public opinion and parliament in Austria were dominated by German bourgeois liberals (liberalism) who opposed the federalization of Austria. As a prize for their cooperation in compromising with the Hungarians, the German liberals were allowed to amend the 1861 constitution known as the February Patent; the Fundamental Laws, which were adopted in December 1867 and became known as the December constitution, lasted until 1918. These laws granted equality before the law and freedom of press, speech, and assembly; they also protected the interests of the various nationalities, stating that

all nationalities in the state enjoy equal rights, and each one has an inalienable right to the preservation and cultivation of its nationality and language. The equal rights of all languages in local use are guaranteed by the state in schools, administration, and public life.

      The authority of parliament was also recognized. Such provisions, however, were more a promise than a reality. Although parliament, for instance, did theoretically have the power to deal with all varieties of matters, it was, in any case, not a fully representative parliament ( suffrage was restricted, and it was tied to property provisions until 1907). In addition, the king was authorized to govern without parliament in the event that the assembly should prove unable to work. Austrian affairs from 1867 to 1918 were, in fact, determined more by bureaucratic measures than by political initiative; traditions dating from the reign of Joseph II, rather than capitalist interests, characterized the Austrian liberals.

Domestic affairs, 1867–73
      After the December constitution had been sanctioned, Francis Joseph appointed a new cabinet, which was named the “bourgeois ministry” by the press because most of its members came from the German middle class (though the prime minister belonged to the Austrian high aristocracy). In 1868 and 1869 this ministry was able to enact several liberal reforms, undoing parts of the concordat of 1855 between Austria and the papacy. Civil marriage was restored; compulsory secular education was established; and interconfessional relations were regulated, in spite of a strong protest from the Roman Catholic Church. In 1870 the Austrian government used the promulgation of the dogma of papal infallibility as pretext for the total abrogation of the concordat.

      The progressive legislation of the bourgeois cabinet stood in sharp contrast to its inability to cope with the demands of the non-German nationalities (Slav). In 1868 the Czechs and the Poles issued declarations demanding a constitutional status analogous to that of the Hungarians. The government in Vienna did give the Poles in Galicia a considerable amount of self-government, which was later used to Polonize the Ruthenian minority. In 1871 a ministry for Galician affairs was set up, and the Poles remained the staunchest supporters of the Austrian government well into World War I.

      The bourgeois ministry was split into a liberal-centralist and a conservative-federalist faction; its members could not reach an agreement on policies to be adopted. The liberal members of the cabinet opposed Czech demands; the conservatives were willing to consider them. Francis Joseph, indignant because of the anticlerical policy of the liberals, dismissed his prime minister, Karl, Fürst (prince) von Auersperg, in 1868 and replaced him with the conservative Eduard, Graf (count) von Taaffe (Taaffe, Eduard, Count von), his boyhood friend. A period of indecision nevertheless persisted. The emperor wavered between the liberals, whose anticlericalism and parliamentarianism he disliked but with whom he sympathized in their centralist, German-oriented policy, and the conservatives, whose political legislation he favoured but who aroused his fears by their demands for federalization. Neither Taaffe nor his successors Leopold Hasner, Ritter (knight) von Artha (Hasner, Leopold, Ritter Von (knight of) Artha) (1870), and Alfred, Graf Potocki (1870–71), could solve the Czech problem.

      The Franco-German War of 1870–71 temporarily diverted public attention from the Czech demands. Opinion was divided strictly along lines of nationality: Austro-Germans celebrated the victories of the Prussian army, whereas the Slavs were decidedly pro-French. The Austrian government remained neutral because conflicting international interests had blocked Austro-French negotiations (which had culminated in a meeting of Francis Joseph and French emperor Napoleon III at Salzburg in 1867). The victory of Prussian chancellor Otto von Bismarck and the establishment of the German Empire under the leadership of the Prussian king gave finality to the results of the 1866 Austro-Prussian War. Austria was definitely excluded from the German scene, and a reorientation of dynastic interests seemed a logical consequence. Francis Joseph decided to explore the possibility of satisfying the Czechs with some measure of federalism. On Feb. 5, 1871, he appointed as prime minister Karl Siegmund, Graf von Hohenwart (Hohenwart, Karl Siegmund, Graf von), a staunch clericalist. The driving mind in Hohenwart's cabinet was the minister of commerce, Albert Schäffle (Schäffle, Albert), an economist whose socialism may not have appealed to the emperor but whose federalism did.

      As a first step toward conciliation with the Czechs, the cabinet dissolved parliament and the provincial diets. When the Bohemian elections improved the federalist position, Hohenwart proceeded to deal directly with the Czechs, copying in certain measure the method used to conclude the compromise with Hungary. Secret talks with the Czech leaders František Ladislav Rieger (Rieger, František Ladislav) and František Palacký (Palacký, František) led Francis Joseph to issue an imperial rescript on Sept. 12, 1871, promising the Czechs recognition of their ancient rights and showing his willingness to take the coronation oath. The Czechs answered this rescript on Oct. 10, 1871, by submitting a constitutional program of 18 articles, called the Fundamental Articles. According to this program, Bohemian affairs should be regulated along the principles of the Hungarian compromise, raising Bohemia to a status equal to Hungary. With this, Hohenwart, who had been up against violent German opposition from the first day of his appointment, aroused Hungarian resistance, too. Andrássy (Andrássy, Gyula, Count (Gróf)), fearing that the Czech program could incite minority groups in Hungary, convinced Francis Joseph that the stability of the Habsburg monarchy was endangered by the Czech program. On Oct. 27, 1871, Hohenwart was dismissed, and Francis Joseph returned the government to the hands of the German liberals.

      The new Austrian prime minister, Adolf, Fürst von Auersperg (Auersperg, Adolf, Prince von, Duke Von Gottschee), entrusted the key ministries of his cabinet to university professors and lawyers. The “ministry of doctors,” as it was nicknamed, concentrated on legal and administrative reform and tried to strengthen German control in parliament. After the dismissal of Hohenwart, the Czechs turned to passive resistance, withdrawing from the Bohemian diet and again abstaining from attendance at the parliament in Vienna. This gave the government the chance to weaken the federalist position by introducing a bill for electoral reform. Instead of the existing modus, whereby the diets selected the deputies that were sent to parliament, the new bill set up electoral districts, each of which was to elect one deputy directly to the Reichsrat. The new system, however, preserved the old division of the electorate into curiae (socioeconomic classes), making parliament in this way a representation of German bourgeois interests.

      The political victory of German capitalism took place at the very moment of a severe economic crisis. The opening of the Vienna International Exhibition of 1873 was seen as a manifestation of the material progress and economic achievements of the Habsburg monarchy. The so-called Gründerjahre, or years of expansive commercial enterprise during the late 1860s and early 1870s, however, were characterized not only by railroad and industrial expansion and the growth of the capital cities of Vienna and Budapest but also by reckless speculation. Warning signs of an imminent crisis were disregarded, and in May 1873, soon after the opening of the exhibition, the stock market collapsed.

      The ensuing depression forced the government to abandon some liberal bourgeois principles. The state took over the railroads and instituted public-works projects in an attempt to alleviate popular distress. The government survived the crisis, however, and German liberal political rule continued for five more years. German liberalism would pass into eclipse not because of economic or domestic crisis but as a consequence of its opposition to foreign expansion.

      A far-reaching consequence of the stock market crash of 1873 was the permeation of anti-Semitism into Austrian politics. Jews (Jew) were accused of being responsible for the speculative stock market activities, even though official investigations proved that many elements of the population, including some ministers and aristocrats, had participated in the Gründungsfieber, or “speculative fever,” and the attendant scandals.

      After his appointment as foreign minister on Nov. 14, 1871, Andrássy conducted the foreign affairs of Austria-Hungary with the intention of preserving the status quo. Discarding the anti-Bismarck bias of his predecessor, Beust, he sought the friendship of the German Empire in order to strengthen his position in a possible confrontation with Russia over problems in the Balkans. The Dreikaiserbund (Three Emperors' League) of 1873, by which Francis Joseph and the German and Russian emperors agreed to work together for peace, gave expression to this policy and made a change of the status quo in the Balkans dependent on German consent.

      The continuing decline of Ottoman power encouraged the Balkan nations in their opposition to Turkish rule, and in 1875 there were revolts and upheavals. Andrássy failed to induce the Ottoman government to adopt a reform program, and by 1876 Russian intervention seemed imminent. Russia offered to join with Austria-Hungary in partitioning the Balkans between them, but Andrássy believed that Austria-Hungary was a “saturated state” unable to cope with more nationalities and lands, and for a time he resisted the offer. He was aware, however, that Russia could not be restrained altogether; thus, through Bismarck (Bismarck, Otto von)'s mediation, there were concluded two secret agreements, at Reichstadt (now Zákupy, Cz.Rep.) in July 1876 and at Budapest in January 1877, whereby Russia gave up its plans for a “great partition” and settled for the territory of Bessarabia and, in return, acquiesced in Austria-Hungary's acquiring Bosnia and Herzegovina. Austria-Hungary and Russia agreed to refrain from intervention for the time being, and it was only when great-power mediation proved unable to settle the conflict between Serbia and the Ottoman Empire that Russia declared war on the Ottoman Empire in April 1877, after having again secured Austro-Hungarian neutrality (see Russo-Turkish wars).

      In February 1878, with the war won, the Russians did not content themselves with Bessarabia and, in the Treaty of San Stefano (San Stefano, Treaty of), violated Austria-Hungary's Balkan interests by creating a large independent Bulgaria. Having Great Britain as an ally in his opposition to the Russian advance in southeastern Europe and Bismarck as an “honest broker,” Andrássy managed at the Congress of Berlin (Berlin, Congress of) in July 1878 to force Russia to retreat from its excessive demands. Bulgaria was broken up again, Serbian independence was guaranteed, Russia retained Bessarabia, and Austria-Hungary was allowed to occupy Bosnia and Herzegovina. Military occupation of those two provinces turned out to be more than the expected mere formality. It took 150,000 Habsburg troops and several weeks of fighting before the lands were under Habsburg authority. Since no agreement could be reached on whether the newly acquired lands should aggrandize the Hungarian or the Austrian part of the monarchy, they were placed under the jurisdiction of the common Habsburg ministry of finance.

Domestic affairs, 1879–1908

Political realignment
      The German liberals had opposed the Balkan policy of Andrássy, and, out of fear that the Slav element in the monarchy would be strengthened by the addition of a new Slav population, they voted against the occupation of Bosnia and Herzegovina—in this way withdrawing support from the government. When Prime Minister Auersperg resigned, the era of German liberal predominance came to an end. In 1879, the same year in which the so-called Dual Alliance with the German Empire bound the Habsburg monarchy to Germany's foreign policy, the reappointment of Taaffe (Taaffe, Eduard, Count von) as Austrian prime minister signified a reorientation in domestic affairs. From 1879 onward, the German element in the Habsburg monarchy was on the defensive, fighting stubborn and senseless rearguard actions against the Slav drive for political and national equality.

      Taaffe first tried to form a cabinet above parties. It was to include even the liberal Karl, Lord von Stremayr, who had presided over a caretaker government after Auersperg's resignation. The situation in parliament decisively changed when Taaffe persuaded the Czechs in 1879 to give up their boycott. Taaffe then governed with the support of a conservative coalition, including Slavs, German aristocrats, and clericals, which gave itself the name of the Iron Ring. In April 1880, language ordinances were issued that made Czech and German equal languages in the “outer [public] services” in Bohemia and Moravia. In 1882 the University of Prague was divided, giving the Czechs a national university. In the same year, an electoral reform reduced the tax requirement for the right to vote from 10 to 5 florins, thus enfranchising the more prosperous Czech peasants and weakening the hold of the German middle class.

      Despite the conservative character of the government, political life in the Habsburg monarchy underwent a decisive change during the Taaffe period. The traditional party lineup decomposed, and new alignments and parties formed that were essentially radical and aggressive. From 1890 well into the 1920s, political life in Austria was dominated by three movements that originated in the 1880s: Pan-Germanism, Christian Socialism, and Democratic Socialism.

      In German Austria, especially in Vienna, moderate liberals were increasingly challenged by extremist groups—notably German nationalists (nationalism). In 1882 their “ Linz program” proposed the restoration of German dominance in Austrian affairs by detaching Galicia, Bukovina, and Dalmatia from the monarchy, by reducing relations with Hungary to a purely personal union under the monarch, and by establishing a customs union and other close ties with the German Empire. This Pan-Germanic (Pan-Germanism) program found its chief protagonist in Georg, Ritter (knight) von Schönerer (Schönerer, Georg, Ritter von), a deputy to the Reichsrat, who also introduced a note of anti-Semitism into German nationalism. Although his version of extreme chauvinism and racialism never attracted more than a small number of followers, in a modified and moderate way Pan-Germanism and anti-Semitism became the ideological support of the bureaucracy and officer corps; though these elements did not favour union with Germany, they did feel that the Habsburg monarchy had the task of bringing German culture to the “inferior” non-German nationalities.

      While Schönerer and Pan-Germanism appealed to the educated classes, Karl Lueger (Lueger, Karl) transformed the Christian Socialism of Karl, Freiherr (baron) von Voegelsang, into a political organization that appealed to small shopkeepers, artisans, tradesmen, and lower bourgeois circles of Vienna and the surrounding countryside. The workers' movement, formerly a concern of welfare and adult-education societies, also transformed itself into a political party. Although workers' movements had been weakened in Austria by personal rivalries and government persecution, in 1889 at a conference in Hainfeld, Victor Adler (Adler, Victor) managed to unite the competing Marxist (Marxism) groups into the Social Democratic Party (see Marxism).

      Taaffe continued to seek compromises between nationalities that were becoming increasingly radical in their demands. The Slav orientation of the Taaffe cabinet did not satisfy the Czechs, for example, but rather encouraged a mood of belligerence; because the moderate Old Czechs failed to live up to radical demands, the nationalistic Young Czechs were able to gain support from the electorate. In 1890 Taaffe tried to negotiate an agreement between the Old Czechs and the German liberals, whereby Bohemia would be divided for administrative and judicial purposes along lines of nationality, but he was balked by the more chauvinistic Young Czechs and German nationalists, and his efforts led to riots in Prague in 1893.

      When Emil Steinbach (Steinbach, Emil) joined Taaffe's cabinet as minister of finance in 1891, he encouraged Taaffe and the emperor to try electoral reform as an instrument of breaking nationalist opposition. It was hoped that, by extending the franchise, nationalistic antagonism could be allayed and the growing unrest among urban workers could be placated. On Oct. 10, 1893, the government introduced a suffrage bill that would have given the vote to virtually every literate adult male (while preserving the traditional system of voting in curiae). Conservative groups of all nationalities joined forces against this bill, and, under pressure from the Hungarian government, Taaffe had to resign on Nov. 11, 1893.

      Though failing in political matters, the cabinet had introduced some economic reforms. Between 1888 and 1892 a system of cooperative banks for farmers was organized, the taxation system was revised, Austrian currency was stabilized by a return to the gold standard, and the florin was replaced by the crown, which remained the Austrian currency until 1924. The Taaffe government is also remembered for social-reform legislation; the laws of 1884 fixed the maximum working day at 11 hours, outlawed the employment of children under 12, required a Sunday rest day for workers, and set up compulsory insurance against accidents and sickness.

Political turmoil
      The franchise question continued to dominate Austrian domestic affairs and became closely welded to the nationality conflicts. The next Austrian prime minister, Alfred, Fürst (prince) zu Windischgrätz (grandson of the Windischgrätz who seized Prague in 1848), sought to win the support of parliament by forming a cabinet in which the clerical conservatives, the Poles, and the German liberals were represented. They were united, however, only in opposition to universal suffrage. Each minister defended his national cause, and the ministry was torn by ceaseless conflict. The end came in June 1895, when the government fulfilled an old promise and introduced Slovene classes into the grammar school at Cilli (now Celje, Slvn.) in Steiermark. Because the school had been exclusively German, this was regarded as a grave blow to the German cause, and the German liberals resigned, forcing Windischgrätz himself to resign.

      Embittered by the conduct of the German liberals, Francis Joseph on October 2 entrusted the task of solving Austria's problems to a Polish aristocrat, Kasimir Felix, Graf (count) von Badeni (Badeni, Kasimir Felix, Graf von), known as a “strong man” for the high-handed way in which he had acted as governor of Galicia. Little noticed at the time, the appointment of Badeni as Austrian prime minister symbolized the breakdown of German control over the Habsburg monarchy. For the first time in Habsburg history, Germans controlled none of the key positions of government. Not only the prime minister but also the finance minister (Leo, Ritter [knight] von Biliński) and the foreign minister (Agenor, Graf Gołuchowski (Gołuchowski, Agenor, Count), who had succeeded Gusztáv Siegmund, Graf Kálnoky von Köröspatak (Kálnoky von Köröspatak, Gusztav Siegmund, Graf (count)), in May 1895) came from the Polish part of the empire.

      Badeni managed to induce parliament to accept a compromise franchise bill that introduced qualified universal male suffrage but preserved the system of class voting (a fifth curia was even added). The shortcomings of the new system enraged the parties representing the masses of the population. By 1897, however, elections held on the basis of the new suffrage had strengthened the radical elements in the Reichsrat; the Young Czechs, for instance, had completely overwhelmed the conservative Old Czechs.

      In the 1870s and '80s, decisive economic changes with far-reaching social consequences had occurred in the Habsburg lands. Though remaining primarily agrarian, they had undergone an industrialization that had resulted in an unprecedented growth of urban centres. Vienna, which had about 430,000 inhabitants in 1851, had become a metropolis of 1,800,000 by the turn of the 20th century, and this phenomenon was paralleled in other areas, especially in Bohemia, which had become the industrial centre of the western part of the Habsburg lands. These socioeconomic developments naturally began to affect politics. From 1890 on, the advance of the Social Democrats and the Christian Socialists caused considerable tension in Vienna. In October 1894 the Social Democrats held their first impressive orderly mass demonstration in the capital, and the communal elections of 1895 made the Christian Socialists the strongest party in Vienna, ending the long liberal rule. When the emperor refused to confirm Karl Lueger, the popular leader of the Christian Socialists, as mayor of Vienna, there were demonstrations and protests. Not until Lueger was elected mayor for the fifth time did Francis Joseph agree to confirm him, in April 1897.

      Counting on support from the Slav and conservative parties in parliament, Badeni dared to take up the Bohemian-language question again. In April 1897 he issued a famous language ordinance that introduced Czech as a language equal to German even in the “inner service”—i.e., for communications within government departments. This decision meant that civil servants in Bohemia and Moravia would have to be able to speak and write Czech as well as German. Since many Germans refused to learn Czech, the ordinance put them at a definite disadvantage in Bohemia's administration. The publication of the ordinance provoked violent German reactions: university professors signed resolutions of protest, mass meetings incited the public, and German deputies in the Reichsrat began to obstruct all legislative activities. The protest reached its climax in November 1897, when parliamentary sessions turned into bedlam, and popular protests against Badeni led to street demonstrations. The mass protest was not restricted to Vienna. It was even worse in some German towns in Bohemia; in Graz, clashes between soldiers and the masses ended in the death of one demonstrator.

      To pacify the public, Francis Joseph gave in; on Nov. 28, 1897, he dismissed Badeni and asked Paul, Freiherr (baron) Gautsch von Frankenthurn (Gautsch von Frankenthurn, Paul, Baron), a former minister of education, to form a government out of the German parties of parliament. Gautsch's attempts to appease the Germans ran into obstruction from the Czechs. The scene of violence shifted from Vienna to Prague and from the Reichsrat to the Bohemian diet. In March 1898 Gautsch was replaced by the former governor of Bohemia, Franz Anton, Fürst zu Thun und Hohenstein (Thun und Hohenstein, Franz Anton, Prince zu), who failed within a year. Of his successors neither Manfred, Graf Clary und Aldringen, who formally revoked the Badeni language ordinance, nor Heinrich Wittek, who headed a short-lived cabinet of a few weeks, managed to solve the nationality problem.

      On Jan. 18, 1900, Francis Joseph asked Ernest von Koerber (Koerber, Ernest von), a former minister of the interior, to form a new cabinet. Koerber was the only commoner to be appointed prime minister by Francis Joseph. As a leading bureaucrat, he formed his ministry from the ranks of other bureaucrats, concentrating in subsequent years on the administration of public affairs and economic programs rather than trying to deal with political problems. First by imperial decree and then, after some political bargaining, by consent of parliament, Koerber carried through a program of economic expansion, social legislation, and administrative reform; among his reforms was the liberation of the press from government and police control. By devious politicking, he managed to keep government activities free from national strife, but he could not prevent national emotions from becoming more and more extremist. The national conflict came to be fought over educational matters, and in the final years of Koerber's government the desire for national universities aroused the sentiments of Italians, Slovenes, and Ruthenians—turning the traditional Czech-German conflict into a multinational one. In December 1904 Koerber's various maneuverings faltered, and he was driven from office by a combination of parties.

      The political climate in Austria was further complicated by the worsening of relations between the emperor and the Hungarian government. Hungarian separatists had agitated for the separation of the Habsburg army, and when Francis Joseph used an address to the troops at Chłopy (now in Poland) in 1903 for an unequivocal reaffirmation of the common and unified character of his army, a controversy developed that had repercussions in the Austrian half of the Dual Monarchy. The plan to use universal suffrage—for which popular demand had strongly increased since the Russian Revolution of 1905—to break the opposition in Hungary actually furthered the cause of political democracy in Austria.

Electoral reform
      Gautsch, who had been reappointed as prime minister, oversaw a bill that would instate universal franchise in Austria. This first bill, introduced to parliament in February 1906, ran into the opposition of the middle-class and conservative parties that still controlled parliament. Nevertheless, imperial interest and popular pressure—the Social Democrats had organized mass rallies to support the bill—combined to overcome parliamentary opposition. After Gautsch resigned in March 1906 and his successor, Conrad, Fürst (prince) von Hohenlohe-Schillingsfürst, failed to master the situation, Max Wladimir, Freiherr (baron) von Beck (Beck, Max Wladimir, Baron von) (Austrian prime minister from June 1906), managed to carry the bill through parliament. In January 1907 Francis Joseph sanctioned the law, which gave the vote to every male over age 23 and abolished the curiae.

      The returns of the election of 1907 made the Germans inescapably a minority in parliament, with 233 members, though they certainly remained the strongest national group. (The Czechs could count on 107 seats, the Poles 82, the Ruthenians 33, the Slovenes 24, the Italians 19, the Serbs and Croats 13, and the Romanians 5.) Universal suffrage also brought the expected decline of the chauvinistic parties. The Young Czechs and the Pan-Germans were reduced to small factions without parliamentary influence, while the Christian Socialists and the Social Democrats returned as the two strongest parties out of more than 30 represented in parliament; the socialist delegation in the Austrian parliament was, in fact, larger than in any other country. The Austrian constitution, however, did not force the emperor to form his government according to the composition of the parliament. Neither the Social Democrats nor the Christian Socialists acquired any significant influence on the shaping of Austrian government affairs.

      Beck remained in office and satisfied the Christian Socialists with some concessions but for the most part based his policy on the support of the conservative parties. In 1905 the diet of Moravia had succeeded in finding a compromise between German and Czech national demands, and it was hoped that a similar compromise could be achieved for Bohemia. But, within a short time, national conflicts got the upper hand again, and parliamentary debate and public opinion were once more excited by national strife. In 1908, however, international complications diverted attention from domestic affairs.

Foreign policy, 1878–1908
      The occupation of Bosnia and Herzegovina in 1878 had reasserted Habsburg interests in Balkan (Balkans) affairs. Facing the possibility of conflict with Russia in this area, Austria-Hungary had looked for an ally, with the result that in 1879 Austria-Hungary and the German Empire had joined in the Dual Alliance, by which the two sovereigns promised each other support in the case of Russian aggression. The signing of the Dual Alliance was Andrássy's last act as foreign minister, but the alliance survived as the main element in the international position of the Habsburg monarchy until the last day of the empire. Under Andrássy's successors, Habsburg foreign policy continued its conservative course.

      In 1881 an alliance with Serbia, which after the Congress of Berlin (1878) had turned to Austria-Hungary for protection, made this Balkan state a satellite of the Habsburg monarchy. The Three Emperors' League (Dreikaiserbund) (comprising Russia, Germany, and Austria-Hungary) of the same year brought Russian recognition of Habsburg predominance in the western part of the Balkan Peninsula. The signatories of this alliance promised to consult one another on any changes in the status quo in the Ottoman Empire, and, while Russia was given assurances that its position regarding Bulgaria and the Straits (the Dardanelles, the Sea of Marmara (Marmara, Sea of), and the Bosporus) would be recognized, Austria-Hungary received from Russia the promise that there would be no objection to a possible annexation of Bosnia and Herzegovina in the future.

      The Three Emperors' League was an important element in the structure of alliances that German chancellor Bismarck (Bismarck, Otto von) set up to stabilize Europe. Having decided to rely on Austria-Hungary as the fundamental partner in international affairs, Bismarck had to try to neutralize all the areas in which the Habsburg monarchy might be drawn into a conflict. It was essential to avoid being involved in a controversy at an inopportune moment and in a region of little interest to Germany. Bismarck therefore attempted to lessen the possibility of a conflict between Austria-Hungary and Russia by making them partners in the Three Emperors' League. And when, in 1882, Italy approached Germany to find a partner in its anti-French policy, Bismarck used the opportunity to neutralize another European trouble spot. He told the Italian foreign minister that the road to Berlin led through Vienna, with the result that the Triple Alliance (comprising Italy, Germany, and Austria-Hungary) was signed in May 1882. It was primarily a defensive treaty against a French attack on Italy or Germany. It further stated that, in the event of any signatory coming to war with another power, the partners of the alliance would remain neutral. The treaty did not settle the problems still existing between the Habsburg monarchy and the Italian kingdom, but for Bismarck it sufficed that they were neutralized.

      In 1883 Bismarck acted again to reduce the danger of war in “Europe's backyard” by arranging a defensive agreement between Austria-Hungary and Romania. The Triple Alliance and the Romanian Alliance not only strengthened the international status quo but also gave security to the internal order of the Habsburg monarchy by weakening the irredentist movements in Transylvania and the Italian parts of Austria-Hungary. (See also Irredentist.)

      The deterioration of German-French relations in the following years convinced Bismarck of the indispensability of the Triple Alliance, and he made every effort to force Vienna to renew the alliance in 1887. By threatening to withdraw protection against Russian aggression, Bismarck forced the Austro-Hungarian foreign minister Kálnoky (Kálnoky von Köröspatak, Gusztav Siegmund, Graf (count)) to consent to his demands, but there can be no doubt that Austria-Hungary was impeded in its national interests by having to adapt its foreign policy to the German and Italian demand for the isolation of France. Although Kálnoky succeeded during the negotiations in avoiding any new obligation in western Europe, he was less successful in defending more-immediate Austrian interests. He managed to evade the Italian request for the support of an active Italian colonial policy, but he was unable to keep Italy out of involvement in Balkan affairs. It might be that, in view of his own conservative and defensive policy, he saw an advantage in having Italy as a third partner in the maintenance of the status quo against possible Russian expansion. At any rate, it was on Kálnoky's initiative that the original Italian demand for a declaration in favour of the status quo along the Ottoman coasts and the Adriatic and Aegean seas was extended to the interior of the Balkan Peninsula. On top of this, Kálnoky granted the Italians the right to ask for compensation in case of any change in the territorial status quo without defining this term. In a certain way, all the differences and clashes between Austrian and Italian Balkan policy in the first decade of the 20th century can be traced to the introduction of this clause (later formulated in Article VII of the treaty) at the renewal of 1887.

      In the same year, Bismarck built around the Triple Alliance a system of alliances and agreements that amounted to complete isolation of France and obliged the major European powers to guarantee the status quo along the borders of the Ottoman Empire. The First and Second Mediterranean Agreements of 1887 joined Great Britain to the powers (Austria-Hungary and Italy) interested in blocking Russia from the Straits and enabled Kálnoky to abandon direct agreements with Russia. The Three Emperors' League of 1881 was allowed to expire, and Austria-Hungary was thus left without any formal understanding with Russia. Gołuchowski (Gołuchowski, Agenor, Count), who followed Kálnoky as foreign minister in 1895, decided that direct relations with Russia should be renewed. In April 1897 Francis Joseph and Gołuchowski visited St. Petersburg (Saint Petersburg). The agreements signed as a result of this initiative aimed to exclude Italy from Balkan affairs and sought to entrust preservation of the Balkan order to the bilateral cooperation of the two eastern monarchies rather than to a multilateral alliance system. Thus, the final years of the 19th century were marked by a change from static continental policy to a more dynamic world policy, and the ensuing mobility in international relations reduced the value of the Triple Alliance.

      The Austro-Russian agreements of 1897 came to bear in 1903, when a major revolt occurred in Macedonia. After a meeting between Tsar Nicholas II and Francis Joseph in October 1903, their foreign ministers drafted a reform program for the Ottoman Empire. A mutual neutrality agreement was added in 1904, leaving Austria-Hungary a free hand in the event of a conflict with Italy and enabling Russia to turn and face Japan (see Russo-Japanese War).

      Explicitly excluded from the agreement with Russia were Balkan conflicts. When King Alexander of Serbia was assassinated in a military revolt in 1903 and the Obrenović (Obrenović dynasty) dynasty was replaced by the Karadjordjević (Karadjordjević dynasty), Serbian relations with the Habsburg monarchy deteriorated. The Serbs adopted an expansionist policy of unifying all South Slavs in the Serbian kingdom, and, in order to block a Serbian advance, the Habsburg monarchy applied economic pressure. In 1906 all livestock imports from Serbia into Austria-Hungary were prohibited. This conflict, the so-called Pig War, did not crush Serbia but rather pushed it into the Russian camp.

      When, in 1906, Gołuchowski was replaced as foreign minister by the former ambassador to St. Petersburg, Alois, Graf (count) Lexa von Aehrenthal (Aehrenthal, Alois, Graf (count) Lexa von), a turning point in Austrian foreign policy was signaled. Aehrenthal made a belated effort to free Austria-Hungary from its submission to German interests and to engage in a dynamic Balkan policy. A first step was his proposal for the construction of a railroad through the Sandžak of Novi Pazar, a strip of land that separated Serbia from Montenegro. The combined Russian and Serbian opposition forced Aehrenthal to abandon the project temporarily and made it clear that any advance in the Balkans would probably result in war with Serbia and perhaps with Russia as well.

      The danger of such a conflict arose within a short time. In July 1908 (Bosnian crisis of 1908), after a revolution in the Ottoman Empire, the Young Turk (Young Turks) movement announced the reform of the Ottoman constitution. Afraid that this constitutional change could undermine the Habsburg position in Bosnia and Herzegovina, which nominally were still under Ottoman suzerainty, Aehrenthal decided to use the opportunity to fortify the Austro-Hungarian position in the Balkan Peninsula. In September 1908 he met with the Russian foreign minister, Aleksandr, Count Izvolsky (Izvolsky, Aleksandr, Count), and secured, so he thought, Russian approval of the proposed annexation in return for Austria's support in having the Straits opened to Russian warships. On Oct. 6, 1908, the annexation was announced, immediately bringing a violent reaction from Serbia. When Izvolsky found that his plans for the Straits were opposed by Great Britain and France, he retracted his tentative support of Austria and supported the Serbian position. The situation became serious, and for a while war seemed imminent. Franz, Freiherr (baron) Conrad von Hötzendorf (Conrad von Hötzendorf, Franz, Graf (count)), the chief of the general staff of the Habsburg monarchy, who had long advocated preventive war, pushed for an aggressive move, but Aehrenthal had apparently never planned more than going to the brink of war. In March 1909 a German ultimatum forced the Russians to withdraw their support from Serbia, and, since the Turkish government had agreed to the annexation of Bosnia and Herzegovina in return for a monetary compensation, Serbia also had to come to terms with the Habsburg monarchy. The Bosnian crisis (Bosnian crisis of 1908) was settled, but the Serbs felt their national pride deeply wounded and continued to stir unrest in the South Slav provinces of the Habsburg monarchy.

Last years of peace

Conflicts of nationality
      The annexation crisis had repercussions among the other Slav nationalities in the monarchy. For several years Czechs had been attracted by the Pan-Slav movement (Pan-Slavism), and in July 1908 a Pan-Slav congress was held in Prague (see Pan-Slavism). During the diplomatic crisis of the following winter, the Czechs unabashedly took the side of the Serbs, and, on the day of the 60th anniversary of Francis Joseph's accession to the throne, martial law had to be declared in Prague. National strife broke out all over the monarchy, and parliamentary activities were all but blocked by filibustering and the riotous activities of the deputies. Austrian prime minister Beck had resigned in November 1908; his successor, Richard, Freiherr (baron) von Bienerth (Bienerth, Richard, Freiherr von), after having accomplished little with a cabinet of civil servants, tried to appease the nationalities by including Landsmannminister (national representatives) in his cabinet (February 1909).

      Obstruction in parliament continued. The Germans, in control of the government and the central administration, continued to assign to the monarchy the role of an outpost of German culture; the Slavs increasingly wanted to make Austria the home of Slav national aspirations. The Czech agrarian leader František Udržal stated in parliament: “We wish to save the Austrian parliament from utter ruin, but we wish to save it for the Slavs of Austria, who form two-thirds of the population.” A population census taken in 1910 more or less confirmed the Slav claim: out of the 28,324,940 inhabitants of the western half of the Austro-Hungarian Empire, nearly 36 percent regarded themselves as Germans, whereas more than 60 percent regarded themselves as Slavs—nearly 18 percent as Poles, about 13 percent as Ruthenians, about 23 percent as Czechs or Slovaks, nearly 5 percent as Slovenes, and almost 3 percent as Serbs or Croats. (Less than 3 percent identified themselves as Italians.) Slav predominance was weakened by the attitude of the Poles, who remained loyal to the central government, allowing the national conflict to assume the character of a primarily Czech-German quarrel.

      Even the Social Democratic Party could not overcome nationalist antagonism. In 1899, at the party congress at Brünn (now Brno, Cz.Rep.), the Social Democrats had presented a national reform program based on democratic federalism, which would have granted the right of national decisions to territorial units formed on a basis of nationality. Karl Renner (Renner, Karl) and Otto Bauer (Bauer, Otto), who later became leaders of German-Austrian socialism, drafted various programs for the solution of the nationality problem in books published between 1900 and 1910. But these efforts could not prevent the socialists from splitting along national lines too, and in 1910 the Czech socialists declared themselves independent of the Social Democratic Party.

Party rivalries
      Such national differences weakened the socialist position in the elections of 1911. More than 50 parties had competed in the campaign, and, since the German nationalist (nationalism) parties had allied in the Deutscher Nationalverband (German National League), they managed to return to parliament as the strongest single party, gaining 104 seats out of 516. The Christian Socialists, weakened by personal rivalry, suffered heavy losses, winning only 76 seats. The Social Democrats received 44 seats and the Czech Social Democrats 24. The Czech parties were badly divided, with those representing the Czech middle class gaining 64 seats. Prime Minister Bienerth found himself unable to form a workable ministry, and he was replaced by Gautsch (Gautsch von Frankenthurn, Paul, Baron), reappointed for the third and final time, who tried to reconcile the Germans and the Czechs.

      For a while negotiations seemed quite successful, but extremist incidents deadlocked the talks, and the Gautsch cabinet was replaced by a new ministry headed by Karl, Graf (count) von Stürgkh (Stürgkh, Karl, Count von), in November 1911. Unable to deal with the nationality problem in a parliamentarian fashion, Stürgkh repeatedly suspended the Reichsrat. It was characteristic of the general political climate in Europe that Stürgkh had to concentrate his legislative program on the improvement of Austrian armament, for international crises overshadowed the nationality conflict.

Conflict with Serbia
      Since the Bosnian crisis of 1908–09, Austrian diplomats had been convinced that war with Serbia was bound to come. Aehrenthal died in February 1912, at a moment when an Italian-Turkish conflict over Tripoli (now in Libya) had provoked anti-Turkish sentiment in the Balkan states (see Italo-Turkish War). Leopold, Graf (count) von Berchtold (Berchtold, Leopold, Count von), who directed Austro-Hungarian foreign policy from 1912 on, did not have the qualities required in such a critical period. Aehrenthal had been able to silence the warmongering activities of Conrad, the Habsburg chief of staff who continued to advocate preventive war against Italy and Serbia, but Berchtold yielded to the aggressive policies of the military and the younger members of his ministry. During the Balkan Wars (1912–13), fought by the Balkan states over the remnants of the Ottoman Empire, Austria-Hungary twice tried to force Serbia to withdraw from positions gained by threatening it with an ultimatum. In February and October 1913, military action against Serbia was contemplated, but in both instances neither Italy nor Germany was willing to guarantee support. Austria-Hungary ultimately had to acquiesce in Serbia's territorial gains. But by supporting Bulgaria's claims against Serbia, Austria-Hungary also had alienated Romania, which had shown resentment against the Habsburg monarchy because of the treatment of non-Hungarian nationalities in Hungary. Romania thus joined Italy and Serbia in support of irredentist movements inside the Habsburg monarchy. By 1914, leading government circles in Vienna were convinced that offensive action against the foreign protagonists of irredentist claims was essential to the integrity of the empire.

 In June 1914 Archduke Francis Ferdinand (Francis Ferdinand, archduke of Austria-Este), the heir of Francis Joseph, participated in army maneuvers in the provinces of Bosnia and Herzegovina, disregarding warnings that his visit would arouse considerable hostility. When Francis Ferdinand and his wife were assassinated by the Bosnian Serb nationalist Gavrilo Princip (Princip, Gavrilo) at Sarajevo (Bos.-Her.) on June 28, 1914, the Austro-Hungarian foreign office decided to use the opportunity for a final reckoning with the Serbian danger. The support of Germany was sought and received, and the Austro-Hungarian foreign office drafted an ultimatum putting the responsibility for the assassination on the Serbian government and demanding full satisfaction. The attitude of the foreign office was shared by Conrad and the Austrian prime minister, Stürgkh, but it was opposed by the Hungarian prime minister, István, Count Tisza (Tisza, István, Gróf), who wanted an assurance that a military move against Serbia would not result in territorial acquisitions and thus increase the Serb element in the monarchy. His demand satisfied, Tisza joined the advocates of war (World War I).

      In ministerial meetings on July 15 and 19, a deliberately provocative ultimatum was drafted in words that supposedly excluded the possibility of acceptance by Serbia. The ultimatum was handed to the Serbian government on July 23. The Serbian answer, handed in on time on July 25, was declared insufficient, though Serbia had agreed to all Austro-Hungarian demands except for two that, in effect, entailed constitutional changes in the Serbian government. These demands were that certain unnamed Serbian officials be dismissed at the whim of Austria-Hungary and that Austro-Hungarian officials participate, on Serbian soil, in the suppression of organizations hostile to Austria-Hungary and in the judicial proceedings against their members. In its reply, the Serbian government pointed out that such demands were unprecedented in relations between sovereign states, but it nevertheless agreed to submit the matter to the international Permanent Court of Arbitration or to the arbitration of the Great Powers (comprising France, Germany, Great Britain, and Russia, in addition to Austria). On receiving this reply, the Austro-Hungarian ambassador left Belgrade (Serb.), severing diplomatic relations between the two countries.

      Foreign Minister Berchtold and his government were clearly determined to make war on Serbia, regardless of the fact that such action might result in war between the Great Powers. While the European governments frantically tried to offer compromise solutions, Austria decided on a fait accompli. On July 28, 1914, Berchtold asked Francis Joseph to sign the declaration of war, informing him that

it cannot be excluded that the [Triple] Entente powers [Russia, France, and Great Britain] might make another move to bring about a peaceful settlement of the conflict unless a declaration of war establishes a fait accompli [eine klare Situation geschaffen].

      In the meantime, the German government had taken control of the situation. Placing German strategic and national plans over Austro-Hungarian interests, Germany changed the Balkan conflict into a continental war by declaring war against Russia and France. (See World War I.)

      The German declaration of war subordinated the Austro-Serbian conflict to the German aim of settling its own rivalries with France and Russia. According to the terms of the military agreement between Germany and Austria-Hungary, the Austro-Hungarian army had to abandon plans to conquer Serbia and instead protect the German invasion of France against Russian intervention. The setbacks that the Austrian army suffered in 1914 and 1915 can be attributed to a large extent to the fact that Austria-Hungary became a military satellite of Germany from the first day of the war, though it cannot be denied that the Austrian high command proved to be quite incompetent. The Austro-Hungarian chief of staff, Conrad, had clamoured for preventive war since 1906, but, when he received his chance in July 1914, it turned out that the Austrian army had no plans for an expeditious offensive. Similarly, after Italy entered the war on the side of the Allied Powers in May 1915, Conrad was unprepared. The fact that only after the Germans had taken command could the Russian front be stabilized did little to enhance the prestige of the Austrian government.

      In July 1914 parliament was out of session, and the Austrian prime minister, Stürgkh, refused to convene it. This and the military censorship established immediately after the outbreak of the war concealed the discontent of the non-German population. While German public opinion in Austria had welcomed the war enthusiastically, and while some Polish leaders supported the war out of anti-Russian feeling, the Czech population openly showed its animosity. The Czech leader Tomáš Masaryk (Masaryk, Tomáš (Garrigue)), who had been one of the most prominent spokesmen of the Czech cause, emigrated to western Europe in protest. Karel Kramář, who had supported the Pan-Slav idea, was tried for high treason and found guilty on the basis of shaky evidence. German nationalism was riding high, but in fact the German Austrians had little influence left. In military matters they were practically reduced to executing Germany's orders; in economic affairs the Hungarians, who controlled the food supply, had the decisive influence. The Hungarian prime minister, Tisza, who had opposed the war in July 1914, became the strongman of the empire. On his advice Foreign Minister Berchtold was dismissed in January 1915, and the foreign office was again entrusted to a Hungarian, István, Count Burián. But Burián failed to keep Italy and Romania out of the war. German attempts to pacify the two states by concessions were unsuccessful because Francis Joseph was unwilling to cede any territory in response to the irredentist demands of the two nations. How little the outward calm in the Habsburg lands corresponded to the sentiment of the population became apparent when Stürgkh was assassinated in October 1916 by Friedrich Adler, the pacifist son of Victor Adler, the leader of Austrian socialism. Francis Joseph made Koerber prime minister once again, but Koerber had no chance to develop a program of his own.

      On Nov. 21, 1916, Francis Joseph died, leaving the throne and the shaky empire to his 29-year-old grandnephew, Charles (I), who had had little preparation for his task until he became heir apparent on the death of Francis Ferdinand. Full of the best intentions, Charles set out to save the monarchy by searching for peace in foreign affairs and by recognizing the rights of the empire's non-German and non-Hungarian nationalities. Charles relied heavily on the advice of politicians who had had the confidence of Francis Ferdinand. He dismissed Koerber in December 1916 and made Heinrich, Graf (count) von Clam-Martinic, a Czech aristocrat, prime minister. At the foreign office he replaced Burián with Ottokar, Count Czernin (Czernin, Ottokar, Count).

      When parliament was reconvened in May 1917, it became manifest how far internal disintegration of the Habsburg monarchy had progressed. Parliament again became the stage of unrelenting national conflicts. Finding so little support from the Czech side, Charles turned back to the German element, and in June 1917 he made Ernst von Seidler, once his tutor in administrative and international law, prime minister. Although he tried to appease the Czechs, the stubborn insistence of the Germans not to yield any of their prerogatives made reform of the empire impossible.

      At the same time, various moves to get Austria-Hungary out of the war ended in failure. After a U.S. offer of general mediation had miscarried in December 1916, Charles tried through secret channels to deal directly with the Triple Entente powers. In the spring of 1917 an exchange of peace feelers took place through the mediation of his brother-in-law, Sixtus, Fürst (prince) von Bourbon-Parma, but Italy's unwillingness to abandon some of the concessions granted to it in the 1915 Treaty of London (by which Italy joined the Allies) made these talks abortive. Similarly, negotiations with Allied representatives carried on in Switzerland brought no results.

      Since the Austro-Hungarian government was unable to extricate itself from the Dual Alliance, which tied Austria-Hungary to Germany, France and England ceased to have regard for the integrity of the Habsburg monarchy. Furthermore, the revolutionary events in Russia in 1917 and the entry of the United States into the war introduced a new, ideological element into Allied policy toward the German-led coalition known as the Central Powers. The German-directed governments represented an authoritarian system of government, and national agitation in the Habsburg lands assumed the character of a democratic liberation movement, winning the sympathies of western European and American public opinion. From early 1918 the Allied governments began to officially promote the activities of the émigrés from Austria, foremost among them the Czech leader Masaryk (Masaryk, Tomáš (Garrigue)), and in April 1918 the Congress of Oppressed Nationalities was organized in Rome.

      But the collapse of the Habsburg monarchy cannot be ascribed to the Allied policy of supporting the independence claims of the Habsburg nationalities, which was only a belated adjustment to the changed conditions within Austria-Hungary. From the summer of 1917, the activities of the nationalist movements within the empire made the situation increasingly untenable. Two days before U.S. Pres. Woodrow Wilson (Wilson, Woodrow) proclaimed his Fourteen Points—one of which demanded the reorganization of the Habsburg monarchy in accordance with the principles of national autonomy—the Czechs demanded outright independence (Jan. 6, 1918). Within a month Polish and South Slav deputies, together with the Czechs, presented to the Reichsrat a program demanding the establishment of independent constituent assemblies for nationally homogeneous areas.

End of the Habsburg empire
      As World War I raged and the national independence movement reached its final stage, another destabilizing development manifested itself. From 1915 on, the supply situation had worsened increasingly, and by January 1918 there were dangerous shortages, especially of food. Prompted by the difficult food situation and inspired by the Bolshevik victory in Russia (see Russian Revolution of 1917), a strike movement developed in the Habsburg lands. Demands for more bread and a demand for peace were combined with nationalist claims resulting in open opposition to the government. The strikes among the civilian population were followed by mutinies in the army and navy. In January and February 1918 the army and the government succeeded in suppressing the social unrest and antiwar demonstrations. But, from the same date, the national opposition movement gathered momentum.

      The hopes that the government soon placed on peace settlements with the eastern states were not fulfilled. The treaties of Brest-Litovsk (Brest-Litovsk, treaties of) with Ukraine (signed in February 1918) and with Soviet Russia (March 3, 1918) as well as the Treaty of Bucharest (Bucharest, Treaty of), which established peace with Romania (May 7, 1918), did not alleviate the supply situation and irritated the Poles because of certain provisions of the Ukrainian settlement.

      In April 1918 Czernin (Czernin, Ottokar, Count) was replaced as foreign minister by Burián. This change resulted from the conflict between Czernin and Charles over the desirability and possibility of Austria's concluding a separate peace with the Allies. When Charles's secret overtures to the Allies in 1917 were revealed by French premier Georges Clemenceau (Clemenceau, Georges), the Germans were outraged, and Czernin was dismissed on their orders. Burián returned to the foreign office on April 16 and immediately reported to the German high command at Spa (Belg.), where he and Charles had to assure the German emperor, William II, of their unchanging loyalty. While this act of submission satisfied the German Austrians, it further incensed the Slav opposition.

      In May 1918 a Slav national celebration in Prague demonstrated the strength of the independence movements. But Charles and the German elements in the central government were still not aware of the extent of the disintegration. In July 1918 Prime Minister Seidler resigned, and his successor, Max Hussarek, Freiherr (baron) von Heinlein (Hussarek von Heinlein, Max Hussarek, Baron), began a belated effort to reorganize the Habsburg monarchy. Hussarek's efforts to federalize the empire in the moment of imminent military defeat unintentionally turned out to provide the basis for the formal liquidation of the Habsburg monarchy. On Oct. 16, 1918, Charles issued a manifesto announcing the transformation of Austria into a federal union of four components: German, Czech, South Slav, and Ukrainian. The Poles were to be free to join a Polish state, and the port of Trieste was to be given a special status. The lands of the Hungarian crown were to be excepted from this program.

      Within a few days, national councils were established in all the provinces of the empire, and for all practical purposes they acted as national governments. The Poles proclaimed the union of all Poles in a unified state and declared their independence at Warsaw on Oct. 7, 1918; the South Slavs (Slav) advocated union with Serbia; and on Oct. 28, 1918, the Czechs proclaimed the establishment of an independent republic. The dissolution of the Habsburg monarchy was thus consummated by the end of October 1918—that is, before the war actually ended.

      It was impossible for the country to survive another winter of hostilities, and on Sept. 14, 1918, Burián published an appeal to all belligerents to discuss the possibilities of ending the war. When this move was opposed by the Germans as well as by the Allies, Burián tried for a separate peace settlement for Austria-Hungary. On Oct. 14, 1918, he sent a note to President Wilson asking for an armistice on the basis of the Fourteen Points. On October 18 the U.S. secretary of state, Robert Lansing (Lansing, Robert), replied that, in view of the political development of the preceding months and, especially, in view of the fact that the new country of Czechoslovakia had been recognized as being at war with the Central Powers, the U.S. government was unable to deal on the basis of the Fourteen Points anymore. On October 27 Gyula, Gróf (Count) Andrássy (Andrássy, Gyula, Count (Gróf)) (the son of the former foreign minister Andrássy), who had replaced Burián three days before as foreign minister, sent a new note to Wilson; in asking for an armistice, he declared full adherence to the statements set forth in the U.S. note of October 18, thus explicitly recognizing the existence of an independent Czechoslovak state. From this moment, it remained only to liquidate the war.

      On October 22 Heinrich Lammasch (Lammasch, Heinrich), a renowned authority in the field of international law and a respected pacifist, formed a new cabinet. He hoped to save the Habsburg monarchy by drawing up a federative structure. Instead, however, he found himself charged with the task of supervising the dissolution of the empire and bringing about an orderly transfer of power. The government could not influence events outside Vienna any longer, and from October 30 it was even challenged in the central agencies by the German-Austrian state council.

      Hostilities were ended by an armistice signed on Nov. 3, 1918. The Austro-Hungarian high command, which had blundered into the war unprepared in 1914, did little better at its conclusion. Owing to inaccuracies in the wording of the documents, more than 300,000 Austro-Hungarian soldiers were taken prisoner by the Italian army.

      For some days, the government hoped that, in spite of the secession of the Slav areas, the Habsburg dynasty could survive in the remaining lands. But even the German Austrians had lost faith in the Habsburgs, and, with revolutionary agitation on the rise and republican passion widespread, Charles adhered to the advice of Lammasch and decided to waive his rights to exercise political authority. On Nov. 11, 1918, he issued a proclamation acknowledging “in advance the decision to be taken by German Austria” and stating that he relinquished all part in the administration of the state. The declaration of November 11 marks the formal dissolution of the Habsburg monarchy.

First Republic and the Anschluss
Early postwar years
      On Oct. 21, 1918, the 210 German members of the Reichsrat of Austria formed themselves into the National Assembly for German-Austria, and on October 30 they proclaimed this an independent state under the direction of the State Council (Staatsrat), composed of the leaders of the three main parties (Social Democrats, Christian Socialists, and German Nationalists) and other elected members. Revolutionary disturbances in Vienna and, more important, the news of the declaration of a republic in Germany forced the State Council on the republican path (see The Weimar Republic, 1918–33 (Germany)). On November 12, the day after Charles's abdication, the National Assembly resolved unanimously that “German-Austria is a democratic republic” and also that “German-Austria is a component part of the German republic.” Under the title of chancellor, the socialist Renner became head of a coalition government, with Bauer (Bauer, Otto), the acknowledged spokesman of the left wing of the Social Democrats, as foreign secretary. On November 22 the territory of the republic was further defined: the National Assembly claimed for the new state all the Habsburg lands in which a majority of the population was German. It also claimed the German areas of Bohemia and Moravia.

      From the first day, the republic was faced with the disastrous heritage of the war. Four years of war effort and the breakup of the Habsburg empire had brought economic exhaustion and chaos. The resulting social distress and poverty inspired revolutionary activities, making bolshevism appear the greatest danger to the new republic, especially after a Soviet republic was established in Hungary at the end of March 1919. The Austrian Social Democrats were determined to resist bolshevism with their own forces without making an alliance (as the German Social Democrats did) with the old order. The Volkswehr (People's Guard) was organized and was twice effective (April 17 and June 15) against communist attempts at a putsch. Bauer and fellow socialist leader Friedrich Adler staked their popularity on defeating the communist agitation in the workers' and soldiers' councils, which had been set up on the Soviet model. By mid-1919, political and social order was restored on parliamentary lines, and the Communist Party relapsed into insignificance.

      More dangerous was the tendency of the Länder (states) to break away from Vienna or to claim almost complete independence. Though the principal motive of this was reluctance to send food supplies to Vienna, it also represented a genuine social, political, and ideological conflict: the administration of the industrialized capital was socialist controlled, while the states, being predominantly agrarian, remained conservative and faithful to the Roman Catholic tradition. This difference was aggravated by the fact that the Habsburg monarchy had been the only bond between the German Austrian lands; with the abdication of the emperor, no symbol of loyalty common to all states remained. Vorarlberg voted for union with Switzerland in May 1919, and Tirol also attempted to secede.

      In February 1919, elections for a constitutional assembly were held. The Social Democrats were returned as the largest single party, with 69 seats. The Christian Socialists won 63 and the German Nationalists 26. When this assembly met (March 4), it had to make wide concessions to federalism in order to appease the states. In exchange, Vienna was elevated to the rank of a state, and the mayor was made the equivalent of a state governor. This proviso subsequently enabled socialist-controlled Vienna to pursue an autonomous policy, even though the Bundesregierung (“federal government”) was controlled by the conservative parties from 1920 to 1934.

      The constituent assembly also settled the constitution of the federal republic (Oct. 1, 1920). The State Council was abolished, and a bicameral legislative assembly, the Bundesversammlung, was established. The Bundesrat (upper house) was to exercise only a suspensive veto and was to be elected roughly in proportion to the population in each state. This represented a defeat for the federal elements in the states, which had wanted the Bundesrat to exercise an absolute veto and to be composed of equal numbers of members from each state. The Nationalrat (lower house) was to be elected by universal suffrage on a basis of proportional representation. The Bundesversammlung in full session elected the president of the republic for a four-year term, but the federal government, with the chancellor at its head, was elected in the Nationalrat on a motion submitted by its principal committee; this committee was itself representative of the proportions of the parties in the house.

      The foreign policy of Bauer and the representatives of the major political parties had insisted firmly on Anschluss (“union”) with Germany, and, as late as 1921, unauthorized plebiscites held in the western provinces returned overwhelming majorities in favour of the union. But Article 88 of the Treaty of Saint-Germain (Saint-Germain, Treaty of) (1919), signed by Austria and the Allied Powers, forbade Anschluss without the consent of the League of Nations (Nations, League of) and stipulated that the republic should cease to call itself Deutschösterreich (German-Austria); it became the Republik Österreich (Republic of Austria). The Austrian claim for the German-speaking areas of Bohemia and Moravia was denied by the Saint-Germain peace conference, and Austria also had to recognize the frontiers of Czechoslovakia along slightly rectified historical administrative lines. On Austria's southern frontier, the newly created Kingdom of Serbs, Croats, and Slovenes (Serbs, Croats, and Slovenes, Kingdom of) threatened armed invasion until it was decided that the border question should be settled by a plebiscite, which, on Oct. 10, 1920, returned a majority of 59 percent in favour of Austria. The German-speaking districts of western Hungary were to be ceded to Austria outright, but Austria, in the face of Hungarian resistance, was obliged to hold a plebiscite. The area of Sopron was finally restored to Hungary.

      After the elections of February 1919, Renner had formed another coalition government; however, following a government crisis in the summer of 1920, a caretaker cabinet under the Christian Socialist Michael Mayr was formed. This was the government that prepared the draft of the constitution and introduced it into parliament. After its approval, new elections were held on Oct. 17, 1920. The Christian Socialists were returned as the strongest party, gaining 82 seats, while the Social Democrats were reduced to 66 and the German Nationalists (nationalism) to 20. Mayr formed a cabinet composed of Christian Socialists; the Social Democrats went into opposition and never returned to the government during the First Republic.

      This political division hardened, and no decisive change took place during the following years. The system of proportional representation combined with the ideological background of Austrian parties made oscillations of political allegiance unlikely. Of the two mass parties, the Social Democrats had an unshakable majority in Vienna (in which about a third of the republic's population lived), while the Christian Socialists had an equally secure majority among the Roman Catholic peasants and the conservative classes, the latter consisting largely of army officers, landowners, and big businesses. The urban middle classes, hostile to both workers and peasants, became German Nationalists. But German nationalism was not limited to the middle classes. Many workers and peasants felt themselves to be Germans and responded to the national appeal.

Economic reconstruction and political strife
      The main task of the nonsocialist governments in power from the autumn of 1920 was to restore financial and economic stability. Between 1919 and 1921 Austria's urban population lived largely on relief from the United States and Great Britain, and, although production improved, distress was heightened by inflation that threatened financial collapse in 1922. In October 1922 the chancellor, Ignaz Seipel (Seipel, Ignaz), secured a large loan through the League of Nations (Nations, League of), enabling Austrian finances to be stabilized. In return, Austria had to undertake to remain independent for at least 20 years. The controller general appointed by the League of Nations reported in December 1925 that the Austrian budget had been balanced satisfactorily, and in March 1926 international financial supervision was withdrawn.

      Seipel's success in October 1922 gave Austria some years of stability and made economic reconstruction and relative prosperity possible. In socialist-controlled Vienna, an ambitious program of working-class housing, health schemes, and adult education was carried out under the leadership of Karl Seitz (Seitz, Karl), Hugo Breitner, and Julius Tandler. “Red Vienna” thus acquired a unique reputation in Europe.

      In 1920 all three major parties spoke in democratic terms. Despite democratic rhetoric, however, preparations for civil war had never been abandoned. The Christian Socialists, led by Seipel, a believer in strong government, were convinced that they had to protect the existing social order against a Marxist revolution. In the provinces, reactionary forces known as the Heimwehr (Home Defense Force)—originally formed for defense against Slavs invading from the south or against marauding soldiers returning from service in World War I—gradually acquired fascist tendencies (see fascism). The Social Democrats, who felt that their social-reform program was endangered, had their own armed force, the Schutzbund (Defense League), descended from the People's Guard of 1918.

      The Schutzbund and the reactionary forces regularly demonstrated against each other. In 1927, in the course of a clash between members of the Schutzbund and reactionary forces at Schattendorf, an old man and a child were accidentally shot by reactionaries. When the latter were acquitted by a Vienna jury on July 14, the Social Democrats called for a mass demonstration, which got out of hand and ended in the burning down of the ministry of justice. In fighting between the police and the demonstrators, almost 100 people were killed and many more were wounded. The Social Democrats then launched a general strike, but it was called off after four days. Seipel had violently asserted the government's authority, and the balance between socialist and nonsocialist forces in Austria was never secure after this decisive date.

      The Christian Socialists, pressed increasingly by the Heimwehr, began to take the offensive against the Social Democrats. Wilhelm Miklas (Miklas, Wilhelm), a leading Christian Socialist, was elected president in 1928, successor to the nonparty Michael Hainisch (Hainisch, Michael), who had been in office since December 1920. There were repeated attempts to revise the constitution, principally with the object of strengthening the power of the executive. After protracted negotiations, a compromise was reached late in 1929. On Dec. 7, 1929, a series of constitutional amendments gave increased powers to the president. Of particular importance were the rights to appoint ministers and issue emergency decrees. But Vienna maintained its autonomy, and the democratic principle was preserved against the far-reaching authoritarian demands of the Heimwehr. In the elections of November 1930, the Social Democrats were returned as the largest single party, with 72 seats. The Christian Socialists held 66, the German Nationalists 19, and the Heimwehr, now posing as a fascist party on the Italian model, 8.

      These political events were overshadowed by the great (Great Depression) world economic crisis (see Great Depression). Though the Social Democratic Party's leaders believed that the crisis should be met by the orthodox means of deflation and spending cuts, they were resolved not to be compromised by supporting these measures and refused to enter a coalition government. On the other hand, in October 1931 they acquiesced in suspending the election of the president by direct popular vote, as had been provided by the constitution of 1929, and agreed to the reelection of President Miklas by parliament. The government, meanwhile, led by Chancellors Johann Schober (Schober, Johann) (1929–30) and Otto Ender (Ender, Otto) (1930–31), was driven to desperate devices to stave off collapse. Schober, leader of the middle-class German Nationalists, launched a project for a customs union with Germany in March 1931; this provoked violent opposition from France and the alliance of the Little Entente (Czechoslovakia, Yugoslavia, and Romania) and was subsequently condemned by a majority of the Permanent Court of International Justice at The Hague. The bankruptcy in May 1931 of the Creditanstalt, the country's most influential banking house, brought Austria close to financial and economic disaster. This, together with the rise of the National Socialists in Germany, resulted in considerable support being given to the Nazis (Nazi Party) in Austria (see National Socialism; Nazi Party). Provincial elections in 1932 showed that the Nazis were draining off votes from the conservative parties. The Nationalists began to demand a general election, and this demand was taken up by the Social Democrats, who saw a chance of winning a majority in parliament.

Authoritarianism: Dollfuss and Schuschnigg
 After the election, when Engelbert Dollfuss (Dollfuss, Engelbert) came to form a Christian Socialist government on May 20, 1932, he could count on a majority of only one vote. Chancellor Dollfuss belonged to a new generation that had been educated in the conservative conviction that the Western form of parliamentary government had been forced upon the central Europeans as a result of military defeat and socialist revolution and that the political and social order could be restored only by the establishment of some kind of strong authority. The leaders of the Christian Socialist Party found themselves under attack from two ideological enemies, the Marxists and the Nazis, who apparently threatened the very basis of the conservative order. In reaction, Dollfuss determined to replace parliamentary government with an authoritarian system. The opportunity to do this came in March 1933, when, during a debate on a minor bill, an argument arose over alleged irregularities in the voting procedure. The president of the Nationalrat resigned, the two vice presidents followed his example, and Dollfuss declared that parliament had proved unworkable. It never met again in full, and Dollfuss governed thereafter by emergency decree.

      By this time (spring of 1933), Adolf Hitler (Hitler, Adolf) was in power in Germany, and Nazi (Third Reich) propaganda for the incorporation of Austria was greatly increased. Dollfuss turned to fascist Italy and authoritarian Hungary for help, as he was convinced that British and French aid would be ineffective. This shift in foreign policy also can be attributed to the fact that Dollfuss had to rely ever more strongly on the help of the pro-fascist Heimwehr to stay in power.

      The Social Democrats were subjected to increasing provocation and on Feb. 12, 1934, took to arms. Civil war followed. After four days of fighting, Dollfuss and the Heimwehr were victorious. The Social Democratic Party was declared illegal and driven underground. In the course of the same year, all political parties were abolished except the Fatherland Front (Vaterländische Front), which Dollfuss had founded in 1933 to unite all conservative groups. In April 1934 the rump of the parliament was brought together and accepted an authoritarian constitution. The executive was given complete control over the legislative branch of government; the elected assemblies disappeared and were replaced by advisory bodies, appointed in a complicated and futile fashion. The rights of man guaranteed under the democratic constitution also were swept away (see human rights). “Republic” was removed from the official name of the country, which became merely the Federal State of Austria.

      On July 25, 1934, a group of Nazis seized the chancellery and attempted to proclaim a government. Dollfuss, whom they had taken prisoner, was murdered. The plan, however, miscarried: the Nazis in the chancellery were compelled to surrender, and their leaders were executed; a Nazi rising in Steiermark was suppressed; and Hitler, faced with the mobilization of an Italian army on the Brenner Pass, repudiated his Austrian followers. Franz von Papen (Papen, Franz von) was sent as German ambassador to reduce Austria by other means.

 Kurt von Schuschnigg (Schuschnigg, Kurt von), who became chancellor on the death of Dollfuss, was a man of gentler personality and of less-violent political passions. His administration of the authoritarian constitution was in the easygoing Austrian fashion, less oppressive than in Italy and Germany. Schuschnigg had a mild preference for restoring the Habsburgs, but he shrank from the international complications this would involve. The regime drifted on without popular favour, weakened by the personal rivalries and ambitions of its leaders and sustained only by a guarantee from Italy. The temporary accord of Great Britain, France, and Italy in the Stresa Front (April 1935) seemed to promise new security, but the Italo-Ethiopian War soon destroyed the unity of the Western powers, and Austria's isolation was complete when Hitler and Italian leader Benito Mussolini (Mussolini, Benito) allied themselves in 1936.

      Schuschnigg had to negotiate a compromise with Germany, which was signed on July 11, 1936; Germany promised to respect Austrian sovereignty, and in return Austria acknowledged itself “a German state.” The agreement left Austria open to Nazi infiltration. In January 1938 the Austrian police discovered a new Nazi conspiracy. Schuschnigg hoped to defeat this by a meeting with Hitler, but at Berchtesgaden, Ger., where Hitler received him on Feb. 12, 1938, Schuschnigg was faced with threats of military intervention in support of the Austrian Nazis. He had to agree to give them a general amnesty and to include some leading Nazis in his cabinet; the Ministry of the Interior had to be entrusted to Arthur Seyss-Inquart (Seyss-Inquart, Arthur), the spokesman of Austrian Nazis. The open agitation of the Nazis threatened to destroy the government's authority, and confidential contacts in the European capitals brought Schuschnigg to realize that he could not count on the support of the western European powers. He therefore resolved to challenge Hitler alone. On March 9 he announced that a plebiscite would be held on March 13 to decide in favour of Austrian independence.

      Though the Austrian crisis had taken him unaware, Hitler acted with energy and speed. Mussolini's neutrality was assured, there was a ministerial crisis in France, and the British government had made it known for some time that it would not oppose the union of Austria with Germany. On March 11, 1938, two peremptory demands were made for the postponement of the plebiscite and for the resignation of Schuschnigg. Schuschnigg gave way, and German troops, accompanied by Hitler himself, entered Austria on March 12. A Nazi government in Austria, headed by Seyss-Inquart, was established; it collaborated with Hitler in proclaiming the Anschluss on March 13.

      France and Great Britain protested against the methods used by Hitler but accepted the fait accompli. The United States followed the British and French policy of appeasement, and the Soviet Union demanded only that the West should stop further German aggression and that the Anschluss should be handled by the League of Nations. The government of Mexico was the only one that did not accept the Anschluss. A questionable plebiscite on April 10, held throughout greater Germany, recorded a vote of more than 99 percent in favour of Hitler.

      Austria was completely absorbed into Germany. Any official memory of Austrian existence was destroyed and suppressed. Austria was renamed Ostmark (Eastern March); Upper and Lower Austria became Upper and Lower Danube. Immediately after the invasion, the Nazis arrested many leaders of the anti-Nazi Austrian political parties and a great number of political opponents, particularly communists and socialists. Many Austrians, especially those of Jewish origin, were forced into exile.

      The Viennese events during Kristallnacht—a short but devastating period of pogroms against Jewish people and property throughout Germany on Nov. 9–10, 1938—proved that anti-Semitism was more virulent and violent in Austria than in most other German areas. A significant percentage of the Jews killed were in Vienna, where dozens of synagogues and hundreds of Jewish shops and apartments were destroyed and plundered. The degradation of the Austrian Jewish community—including the widespread threats against Jews' lives, the destruction or “Aryanization” (forcible confiscation) of Jewish property, and the exiling of Austrian, mostly Viennese, Jews—became known as the Viennese model (Wiener Modell), on which the Nazis based their later expulsion of Jews from all of Germany and German-occupied countries.

      By the time World War II began in 1939, more than 100,000 Jews—roughly half of all Austrian Jews—had left Austria. When the fighting ceased, more than 65,000 Austrian Jews had perished, many of them in extermination camps (extermination camp). Jews were not the only victims of Nazi persecution. Thousands of Roma (Gypsies) also were deported or murdered, and tens of thousands of Austrians with mental or physical disabilities were killed, most of them at Hartheim Castle, a so-called euthanasia centre near Linz.

      Austrians were overrepresented not only in the system of terror against Jews but also on the battlefields. During the course of the war, hundreds of thousands of Austrians fought as German soldiers; a substantial number of Austrians served in the SS, the elite military corps of the Nazi Party. By the end of the war, approximately 250,000 Austrians had been killed or were missing in action. An even greater number of Austrians were held as prisoners of war, many of them for years in camps in the Soviet Union. In addition, more than 20,000 Austrians were killed in U.S. and British bombing raids.

      As increasing numbers of Austrian men were enlisted in the German army, the resultant lack of workers, together with the tremendous buildup of the armament industries, brought compulsory labour on a massive scale to Austria. Foreign workers from many European countries were forced to work in industry as well as agriculture during the war, as were many thousands of concentration-camp inmates, most of them from the Mauthausen concentration camp, near Linz, or one of its satellite camps. (About half of the approximately 200,000 prisoners in these camps—many of them Russian soldiers—died.)

      While the great majority of Austrians were not Nazis, popular support for Germany's wartime policies remained strong until the later phases of the war. The Austrian resistance was small, though it was by no means negligible. Left-wing resistance groups (mostly communists, with a smaller number of socialists) dominated, but conservative resisters (mainly Christian Socialists and monarchists) were active as well. During the war, tens of thousands of Austrians were arrested for political reasons; many of them died in concentration camps or prisons, and about 2,700 were executed. Additionally, a number of Austrians fought as Allied soldiers against the German army.

      The resistance movement was hampered by the political antagonism that had weakened the First Republic of Austria between the two World Wars. This political divide was so deep and bitter that it blocked cooperation between Austrian émigrés and between the various resistance groups that had formed inside the country. Nevertheless, the possibility of reestablishing an independent Austria after the war was far from dead.

      After the outbreak of the war, the Allied governments began to reconsider their attitude toward the Anschluss. In December 1941 Soviet premier Joseph Stalin (Stalin, Joseph) informed the British that the U.S.S.R (Union of Soviet Socialist Republics). would regard the restoration of an independent Austrian republic as an essential part of the postwar order in central Europe. In October 1943, at a meeting in Moscow of the foreign ministers of Great Britain, the U.S.S.R., and the United States, a declaration was published that declared the Anschluss null and void and pledged the Allies to restore Austrian independence; it also reminded the Austrians that they had to make an effort to rid themselves of the German yoke. Though the British prime minister, Winston Churchill (Churchill, Sir Winston), continued to make proposals for setting up a central European federation comprising the former Habsburg lands and even southern Germany, the European Advisory Commission in London assumed that Austria would return to sovereignty within the borders of 1937.

      When Soviet troops liberated Vienna on April 13, 1945, representatives from the resistance movement and the former political parties were allowed to organize and to set up a free provisional government. Though Austria was once again an independent republic, the future looked more than bleak. Much of the infrastructure of Austrian cities had been damaged or destroyed, and the country emerged from the war as one of the poorest in Europe.

Second Republic
Allied occupation
      On April 27, 1945, former chancellor Karl Renner (Renner, Karl) set up a provisional government composed of Social Democrats, Christian Socialists, and Communists and proclaimed the reestablishment of Austria as a democratic republic. The Western powers, afraid that the Renner government might be an instrument of communist expansion, withheld full recognition until the autumn of 1945. Because of similar suspicions, agreement on the division of Austrian zones of Allied occupation was delayed until July 1945. Shortly before the Potsdam Conference (which stipulated that Austria would not have to pay reparations but assigned the German foreign assets of eastern Austria to the U.S.S.R. (Union of Soviet Socialist Republics)), control machinery was set up for the administration of Austria, giving supreme political and administrative powers to the military commanders of the four occupying armies (U.S., British, French, and Soviet). In September 1945 a conference of representatives of all states extended the authority of the Renner government to all parts of Austria.

      A general election held in November 1945, in which former Nazis were excluded from voting, returned 85 members of the Austrian People's Party (corresponding to the Christian Socialists of the prewar period), 76 Socialists (corresponding to the Social Democrats and Revolutionary Socialists), and 4 Communists. Renner was elected president of the republic; Leopold Figl, leader of the Austrian People's Party, became chancellor of a coalition cabinet. As the coalition government was formed in proportion to the parties' strength in parliament, the Austrian People's Party and the Socialists were the sole partners. This principle of proportional representation, originally introduced in 1919, was to be an important factor in Austrian political life after 1945.

      The government decided not to draft a new constitution but to return to the constitution of 1920, as amended by the laws of 1929. In June 1946 the control agreement of July 1945 regulating the machinery of Allied political supervision was modified by restricting Allied interference essentially to constitutional matters. Denazification laws passed in 1946 and 1947 eliminated Nazi influence from the public life of Austria.

      From 1945 to 1952 Austria had to struggle for survival. After liberation from Nazi rule, the country faced complete economic chaos. Aid provided by the United Nations Relief and Rehabilitation Administration and, from 1948, support given by the United States under the Marshall Plan made survival possible. Heavy industry and banking were nationalized in 1946, and, by a series of wage-price agreements, the government tried to control inflation. Interference by military commanders in political and economic affairs in the Soviet zone of occupation caused a considerable migration of capital and industry from Vienna and Niederösterreich to the formerly purely agricultural western states. This brought about a far-reaching transformation of the economic and social structure.

      In 1949 former Nazis were allowed to participate in the general election. The Union of Independents (later renamed the Freedom Party), corresponding to the former German Nationalist group but free from ideological ties, won 16 seats in parliament. In subsequent elections (1953, 1956, 1959, 1962), the relationship of this party with the two main parties (the Austrian People's Party and the Socialists) remained stable. After Renner died (Dec. 31, 1950), Theodor Körner (Körner, Theodor), the Socialist mayor of Vienna, was elected president by direct popular vote. He was succeeded in 1957 by the leader of the Socialist Party, Adolf Schärf, who was followed in 1965 by Franz Jonas, former mayor of Vienna, and in 1974 by Rudolf Kirchschläger, former minister of foreign affairs.

      The influence of the Socialists in the coalition government, which had been relatively strong under Figl's chancellorship, was reduced when the Austrian People's Party replaced Figl with Julius Raab in the spring of 1953 and had Reinhard Kamitz appointed minister of finance. The subsequent economic reconstruction and the advance to a prosperity unknown to Austrians since the years before World War I is generally identified with the so-called Raab-Kamitz course, which was based on a modified free-market economy. The nationalized steel industry, electric power plants, and oil fields, together with the privately owned lumber and textile industries and the tourist traffic, were the major economic assets. The Austrian economy came to be dominated to a disproportionate extent by a trend toward the service sector because of the importance of tourism, which transformed the economic and social character of the rural Alpine areas. In addition, a heavy burden had been removed from the economy in 1953, when the Soviet government declared that it would pay its own occupation costs (as the United States had done since 1947). Thereupon, the British and the French followed suit.

      The Berlin conference of the foreign ministers of France, Great Britain, the U.S.S.R., and the United States in January 1954 raised Austrian hopes for the conclusion of a peace treaty. For the first time, Austria was admitted as an equal conference partner, but the failure of the foreign ministers to agree on the future of Germany again prejudiced Austria's chances. The Soviet government was not prepared to forgo the strategic advantages of maintaining forces in Austria as long as Germany was not “neutralized.” In February 1955, however, the Soviet government suddenly extended an invitation to the Austrian government for bilateral negotiations. An Austrian delegation visited Moscow in April 1955, and an agreement was reached by which the Soviet government declared itself ready to restore full Austrian sovereignty and to evacuate its occupation troops in return for an Austrian promise to declare the country permanently neutral.

Restoration of sovereignty
      The State Treaty—signed in Vienna on May 15, 1955, by representatives of the four occupying powers and Austria—formally reestablished the Austrian republic in its pre-1938 frontiers as a “sovereign, independent, and democratic state.” It prohibited Anschluss between Austria and Germany as well as the restoration of the Habsburgs. It also guaranteed the rights of the Slovene and Croatian minorities in Kärnten, Steiermark, and Burgenland. Great Britain, the United States, and France relinquished to Austria all property, rights, and interests held or claimed by them as former German assets or war booty. The U.S.S.R. (Union of Soviet Socialist Republics), however, obtained tangible payment for the restoration of Austrian freedom. This included $150 million for the confiscated former German enterprises, which Austria bought back from the Administration of Soviet Property in Austria; $2 million for the confiscated German assets of the First Danube Steamshipping Company; and 10 million metric tons of crude oil as the price of Austrian oil fields and refineries that had been Soviet war booty.

      The treaty came into force on July 27, 1955, and by October 25 all occupation forces were withdrawn. On October 26 a constitutional law of perpetual Austrian neutrality was promulgated. The Austrian government had never left any doubts that the pledge to neutrality could be interpreted only as a military one and never as an ideological one. Throughout the Soviet occupation, the Austrians had proved their anticommunist attitude, and the spontaneous reaction of the Austrian people during the Soviet suppression of the Hungarian Revolution in 1956 demonstrated their sympathy with Western democratic ideas (see Hungary: The Revolution of 1956 (Hungary)). Austria preserved political stability; changes in the personal and ideological structure of the government and political parties were effected without major political crisis.

      Austria became a member of the United Nations in 1955 and of the Council of Europe (Europe, Council of) in 1956. Major problems in foreign relations were the conflict with Italy over Südtirol (southern Tirol; now part of the Italian Trentino–Alto Adige region) and the problem of association with the European Economic Community (EEC; later renamed the European Community). During the Paris Peace Conference of 1946, an agreement had been signed guaranteeing the rights of the German-speaking population of Südtirol, a region that Italy had obtained after World War I. The Austrian government, claiming that the Italians had not lived up to their obligations, initiated bilateral talks. In the early 1960s, acts of terrorism committed by German-speaking chauvinists interfered with the progress of the negotiations, but in 1969 agreement was finally reached on implementing the guarantees provided in the agreement of 1946. In 1958 Austria joined the European Free Trade Association, but a special arrangement with the EEC, accompanied by prudent dealings with the communist neighbours, maintained Austria's status as a neutral nation. In that capacity, Austria provided for large numbers of refugees from eastern Europe; it also functioned as a transit link for Jewish émigrés from the U.S.S.R.

      From 1962, disagreement over economic problems generated friction between the coalition parties. The annual budget led to grave disunity in the coalition, and in the autumn of 1965 the government resigned and called new elections. The elections, held on March 6, 1966, brought a setback for the Socialist Party, and the Austrian People's Party was returned to parliament with an absolute majority. Negotiations for a new coalition government failed. The Socialists, led by a former foreign minister, Bruno Kreisky (Kreisky, Bruno), went into opposition, and Josef Klaus formed the first one-party cabinet of the Second Republic. Contrary to widespread misgivings, the political stability of the country was not disturbed, and parliament was given new vigour and influence.

      In ensuing provincial elections, the Socialist Party demonstrated recovery from the setback of 1966, and in the national elections of 1970 the Socialists managed to win a plurality of votes, becoming the strongest party in parliament, with 81 seats, though falling short of a majority. After negotiations for a new coalition cabinet failed, in May 1970 Kreisky was appointed chancellor, and he formed the country's first all-Socialist cabinet. Sensing increased support for the Socialists, he called for new elections in October 1971, which gave his party a clear majority of 93 seats. In the subsequent elections of 1975 and 1979, Austrian voters demonstrated their approval of Kreisky's policy of moderate social reform and economic stability by returning the Socialist Party to parliament in increasing strength: the elections of May 1979 gave the Socialists 95 seats, while the Austrian People's Party, continually weakened by regional animosities and leadership squabbles, received 77 seats and the Freedom Party 11.

      The stability of Austrian politics in the 1970s was paralleled by an equally stable economy: besides having an elaborate system of social security and health insurance, Austrians enjoyed an unbroken prosperity with one of the lowest rates of unemployment in Europe. The Kreisky governments carried through a host of reform programs, among which the reorganization of the legal code under the minister of justice Christian Broda had truly historic dimensions.

Fritz Fellner Reinhold F. Wagnleitner
      In 1978 Kreisky suffered his first defeat when a majority voted against the opening of a nuclear power plant. The late 1970s also witnessed the first of a series of scandals, many of them related to the technocratic wing of the Socialist Party. This wing centred around Kreisky's minister of finance and political heir-apparent, Hannes Androsch. In particular, the dubious link between Androsch's tax-consulting firm and the contractors building Vienna's new general hospital began a series of setbacks for the Socialist Party; these were aggravated by the troubles of the nationalized industries.

      The scandals that plagued Austria in the 1980s overshadowed the considerable reforms enacted by the Kreisky government. Voters grew increasingly dissatisfied with a stagnant sociopolitical system in which all important decisions were made behind closed doors by the interest groups represented in the “Social Partnership” (i.e., the chambers of industry, trade, and agriculture and the labour unions). A growing environmental awareness intensified voter frustration.

      After the Socialist Party lost its absolute majority in 1983, Kreisky resigned, and the Socialists, under Chancellor Fred Sinowatz, entered into a coalition with the Freedom Party. The coalition stumbled from one scandal to another until it was finally brought down by the election of Kurt Waldheim (Waldheim, Kurt), who was alleged to have been a Nazi war criminal, as president in 1986. Although an international historians' commission found no evidence that Waldheim had personally committed war crimes, it proved his indirect complicity. With Waldheim's insistence that he had only done his duty, the domestic political intrigue, the not-altogether-hidden anti-Semitism of some of his supporters, and the U.S. government's decision to place Waldheim on its watch list of undesirable aliens, the incident undermined Austria's domestic consensus more than any other event since 1945.

      After the Waldheim debacle, Sinowatz resigned as chancellor, and the Socialist Party under Franz Vranitzky called for new elections, which resulted in a grand coalition of the Socialist and Austrian People's parties. This government introduced partially successful budgetary and tax reforms and a privatization scheme for the nationalized industries. These reforms promoted the economic growth and social stability of the late 1980s. However, more scandals (notably the Noricum affair, involving the illegal sale of arms to Iran by a state-owned company), division within the Austrian People's Party, and the public's continued dissatisfaction with backroom deals weakened support for the coalition, while the environmentalist Greens (in parliament since 1986) and the Freedom Party enjoyed growing appeal.

      In the 1990 elections the Socialists avoided disaster only through a combination of Vranitzky's popularity and the weakness of the Austrian People's Party. The reshaped coalition of the Socialist Party (renamed the Social Democratic Party in 1991) and the Austrian People's Party faced new problems that were largely due to the dramatically changed international situation: Austria's application for membership in the EEC (which, renamed the European Community, became a part of the European Union [EU] in 1993) renewed heated debates over domestic repercussions and over membership's compatibility with neutrality. The latter issue was raised again in connection with the breakdown of the Warsaw Pact and the turmoil in Yugoslavia. In 1990 the Austrian government unilaterally revoked some of the provisions of the 1955 State Treaty governing Austria's neutrality. During the Persian Gulf War in 1991, in a controversial decision the government permitted air-transit rights to Allied planes and the transportation of U.S. salvage tanks through Austrian territory.

      With the end of the Cold War and the opening of Austria's eastern borders, the country was faced with an explosive increase of refugees (refugee) (particularly from the Balkans) and immigrants (especially from Turkey). Many Austrians blamed the now-suffering Austrian economy on the influx of newcomers. In the early 1990s, heavy industry struggled, national debt rose, and unemployment reached a 40-year high. Popular discontent was reflected at the polls, as the right-wing Freedom Party and smaller opposition parties made gains against the ruling coalition.

Reinhold F. Wagnleitner

Austria in the European Union
      In a historic referendum in June 1994, Austrian voters indicated their desire to join the EU, and in January 1995 Austria became a member. The following year, Austrians commemorated 1,000 years of common history. The festivities highlighted Austria's stature in Europe historically, while the country's increased regional cooperation underscored its current role in newly restructured Europe.

      The Austrian economy, however, was not yet ready to meet EU criteria for financial stability. Further austerity measures were launched as Austria prepared to adopt the single European currency, the euro. In 1999 the majority of EU members began to replace their national currency with the euro, and by 2002 Austria, with its economy once again among the strongest in Europe, retired the schilling.

      Meanwhile, the ongoing concern about immigration paralleled fears of foreign (particularly German) ownership of Austrian businesses, especially as Austria began privatizing more state-owned operations. Reflective of these fears was the ascendancy of Freedom Party leader Jörg Haider (Haider, Jörg), whose extreme brand of conservatism regularly drew international censure but whose party narrowly eclipsed the Austrian People's Party in the parliamentary elections of 1999. By 2000 the People's Party had deserted the weakened Social Democratic Party to form a right-of-centre coalition government with the Freedom Party. The participation of the Freedom Party in the government brought condemnation from both the Austrian left and the international community, and the EU imposed sanctions on Austria. This move backfired within the country, where the governing parties mobilized patriotic support by portraying Austria as the victim of an international conspiracy. By the end of 2000 the EU had withdrawn its sanctions.

      The government was buoyed by a surging economy, but the Freedom Party, inexperienced in matters of state and beset by internal turmoil, stumbled in the 2002 elections. Its losses were primarily the gains of the Austrian People's Party, which became the largest party for the first time in 36 years. But rather than renewing its traditional partnership with the Social Democrats, it again formed a coalition with the Freedom Party in 2003.

      The Freedom Party splintered in 2005 as Haider and other leaders left to form a new party, the Alliance for the Future of Austria. The split followed a period of especially acrimonious fighting between moderate members and hard-liners over the party's direction. The Alliance for the Future of Austria replaced the Freedom Party as the junior partner in the coalition government.

 In 2006 the Social Democrats won an unexpected victory in the parliamentary elections, narrowly defeating the Austrian People's Party. In January 2007 those two parties formed a coalition government, with Alfred Gusenbauer of the Social Democrats as chancellor. However, the unpopularity of Gusenbauer, who was perceived as an ineffective leader, as well as disputes over social policy, soon weakened the coalition. It collapsed in July 2008 following the withdrawal of the People's Party. Parliamentary elections held that September—the first in which 16- and 17-year-olds were allowed to vote—resulted in a narrow win for the Social Democrats over the People's Party. However, the Freedom Party and the Alliance for the Future of Austria enjoyed a resurgence: combined votes for the two right-wing parties exceeded those for the People's Party. Nevertheless, the Social Democrats and the People's Party agreed to form a new coalition government, excluding the far right, in November 2008.


Additional Reading

Eugene K. Keefe et al., Area Handbook for Austria (1976), though old, is still valuable for its survey of physical features and its description of national traditions and culture. Austria, Facts and Figures (1990), published by the Federal Press Service, is an informative compendium of illustrations and statistics. Among the more comprehensive guidebooks are Ian Robertson, Austria, 2nd ed. (1987); and Franz N. Mehling (ed.), Austria (1985; originally published in German, 1977), from the Phaidon Cultural Guide series. Harald Gardos and Manfred Wagner, Some Aspects of Cultural Policies in Austria (1981), is a brief UNESCO study.Political developments are discussed in William T. Bluhm, Building an Austrian Nation: The Political Integration of a Western State (1973). John Fitzmaurice, Austrian Politics and Society Today: In Defence of Austria (1990), is a study of economic, social, and political characteristics against the traditional perception of Austrian neutrality. More-detailed analysis of the political forces in Austrian society is found in Max E. Riedlsperger, The Lingering Shadow of Nazism: The Austrian Independent Party Movement Since 1945 (1978); Melanie A. Sully, Political Parties and Elections in Austria (1981); and Anton Pelinka and Fritz Plasser (eds.), The Austrian Party System (1989).

Konrad Spindler, The Man in the Ice (1994, reissued 2001; originally published in German, 1993), recounts the discovery of the well-preserved body of a Stone Age hunter in the Ötztal Alps. Comprehensive chronological coverage is provided in Richard Rickett, A Brief Survey of Austrian History, 9th ed. (1988); and Lonnie Johnson, Introducing Austria (1987). Erich Zöllner, Geschichte Österreichs: von den Anfängen bis zur Gegenwart, 8th ed. (1990), is a massive history of Austria from ancient times to the end of the 1980s. Paula Sutter Fichtner, The Habsburg Empire: From Dynasticism to Multinationalism (1997), provides a comprehensive survey of the long history of the Habsburgs. Barbara Jelavich, Modern Austria: Empire and Republic, 1815–1986 (1987), covers Austrian history from the end of the Napoleonic Wars to the end of the 20th century.Austrian History Yearbook, published by the University of Minnesota, is devoted to recent research. The series Contemporary Austrian Studies, ed. by Günter Bischof and Anton Pelinka, often with a guest editor, concentrates on recent Austrian history. Paula Sutter Fichtner, Historical Dictionary of Austria (1999), provides easily accessible, reliable information.Studies of particular historical periods include A.W. Leeper, A History of Medieval Austria (1941, reprinted 1978), focusing on the Middle Ages up to the middle of the 13th century; Adam Wandruszka, The House of Habsburg: Six Hundred Years of a European Dynasty (1964, reprinted 1975; originally published in German, 1956), focusing on the late Middle Ages; Robert A. Kann, A History of the Habsburg Empire, 1526–1918 (1974); and R.J.W. Evans, The Making of the Habsburg Monarchy, 1550–1700: An Interpretation (1979, reprinted 1984), concentrating on the ascent of the house of Habsburg, and Rudolf II and His World: A Study in Intellectual History, 1576–1612 (1973, reissued with corrections, 1984). Thomas M. Barker, Double Eagle and Crescent: Vienna's Second Turkish Siege and Its Historical Setting (1967); and Ivan Parvev, Habsburgs and Ottomans Between Vienna and Belgrade (1683–1739) (1995), explore the difficult relations between the Habsburg and Ottoman empires from the second siege of Vienna to the beginning of Maria Theresa's reign. A thorough overall interpretation of the period from the Thirty Years' War to the Congress of Vienna is given in Charles W. Ingrao, The Habsburg Monarchy, 1618–1815, 2nd ed. (2000).The 18th century is examined in James Van Horn Melton, Absolutism and the Eighteenth-Century Origins of Compulsory Schooling in Prussia and Austria (1988), discussing the educational system against the background of general social history; and Ernst Wangermann, The Austrian Achievement, 1700–1800 (1973), on cultural and intellectual life. Works on the monarchy include C.A. Macartney, Maria Theresa and the House of Austria (1969); Derek Beales, Joseph II: In the Shadow of Maria Theresa, 1741–1780 (1987), focusing on Joseph's formative years; and Paul P. Bernard, Joseph II (1968), a brief survey. The Habsburgs' stormy relationship with the Hungarians in the age of reform is dealt with in Éva H. Balázs, Hungary and the Habsburgs, 1765–1800: An Experiment in Enlightened Absolutism (1997; originally published in Hungarian, 1987). Austria's great struggles against the French Revolution and Napoleon are covered in Karl A. Roider, Jr., Baron Thugut and Austria's Response to the French Revolution (1987); and Gunther E. Rothenberg, Napoleon's Great Adversaries: The Archduke Charles and the Austrian Army, 1792–1814 (1982). Economic development is examined in David F. Good, The Economic Rise of the Habsburg Empire, 1750–1914 (1984); and John Komlos, The Habsburg Monarchy as a Customs Union: Economic Development in Austria-Hungary in the Nineteenth Century (1983). Culture is surveyed in Robert A. Kann, A Study in Austrian Intellectual History: From Late Baroque to Romanticism (1960, reprinted 1973).Analyses of 19th-century politics and diplomacy include Harold Nicolson, The Congress of Vienna: A Study in Allied Unity 1812–1822 (1946, reissued 1989); Arthur G. Haas, Metternich, Reorganization, and Nationality, 1813–1818: A Story of Foresight and Frustration in the Rebuilding of the Austrian Empire (1963); and Enno E. Kraehe, Metternich's German Policy, 2 vol. (1963–1983). István Deák, The Lawful Revolution: Louis Kossuth and the Hungarians, 1848–1849 (1979), is an excellent work on the national problems. The 19th century is further covered in Heinrich Friedjung, The Struggle for Supremacy in Germany, 1859–1866 (1935, reprinted 1966; originally published in German, 10th ed., 2 vol., 1916–17); C.A. Macartney, The Habsburg Empire, 1790–1918 (1968); Arthur J. May, The Hapsburg Monarchy, 1867–1914 (1951, reissued 1968); Henry W. Steed, The Hapsburg Monarchy, 4th ed. (1919, reissued 1969); Robert A. Kann, The Multinational Empire: Nationalism and National Reform in the Habsburg Monarchy, 1848–1918, 2 vol. (1950, reissued 1977); and A.J.P. Taylor, The Habsburg Monarchy, 1809–1918: A History of the Austrian Empire and Austria-Hungary, new ed. (1948, reprinted 1976); William McCagg, A History of Habsburg Jews, 1670–1918 (1989); Carl E. Schorske, Fin-de-Siècle Vienna: Politics and Culture (1980); and William M. Johnston, The Austrian Mind: An Intellectual and Social History, 1848–1938 (1972).John W. Boyer, Culture and Political Crisis in Vienna: Christian Socialism in Power, 1897–1918 (1995); and Brigitte Hamann, Hitler's Vienna: A Dictator's Apprenticeship, trans. from German (1999), provide a bridge between the 19th and 20th centuries. F.L. Carsten, Fascist Movements in Austria: From Schönerer to Hitler (1977); and Charles A. Gulick, Austria from Habsburg to Hitler, 2 vol. (1948, reprinted 1980), do the same through analyses of social and political developments. Gunther E. Rothenberg, The Army of Francis Joseph (1976, reissued 1998); and Alan Sked, The Decline and Fall of the Habsburg Empire, 1815–1918, 2nd ed. (2001), explain structural reasons for the breakdown of the monarchy. Karl R. Stadler, Austria (1971); and Elisabeth Barker, Austria, 1918–1972 (1973), cover 20th-century history in general. David F. Good, Margarete Grandner, and Mary Jo Maynes (eds.), Austrian Women in the Nineteenth and Twentieth Centuries: Cross-disciplinary Perspectives (1996), gives a good overview of women's history.Surveys of the First Republic include Arthur J. May, The Passing of the Hapsburg Monarchy, 1914–1918, 2 vol. (1966); Mary MacDonald, The Republic of Austria, 1918–1934: A Study in the Failure of Democratic Government (1946); F.L. Carsten, The First Austrian Republic, 1918–1938: A Study Based on British and Austrian Documents (1986); and Anson Rabinbach, The Crisis of Austrian Socialism: From Red Vienna to Civil War, 1927–1934 (1983). Jill Lewis, Fascism and the Working Class in Austria, 1918–1934: The Failure of Labour in the First Republic (1991), offers fresh insight into the problematic wavering between the theory and the practice of Austro-Marxism. Michael P. Steinberg, The Meaning of the Salzburg Festival: Austria as Theater and Ideology, 1890–1938 (1990, reissued 2000), reviews the rejuvenation of the Austrian spirit after World War I.Martin Kitchen, The Coming of Austrian Fascism (1980); and Bruce F. Pauley, Hitler and the Forgotten Nazis: A History of Austrian National Socialism (1981), review early German national socialism in Austria. The development of anti-Semitism is chronicled in Ivar Oxaal, Michael Pollak, and Gerhard Botz (eds.), Jews, Antisemitism, and Culture in Vienna (1987), a history of Austrian Jews, from assimilation to forced emigration and extermination; and Bruce F. Pauley, From Prejudice to Persecution: A History of Austrian Anti-Semitism (1992).Emmerich Talos, Ernst Hanisch, and Wolfgang Neugebauer (eds.), NS-Herrschaft in Österreich, 1938–1945 (1988), is a comprehensive scholarly volume dealing with the implications of national socialist rule for Austrian society. Evan Burr Bukey, Hitler's Austria: Popular Sentiment in the Nazi Era, 1938–1945 (2000), analyzes secret-service reports on Austrian public opinion during World War II. David Wingeate Pike, Spaniards in the Holocaust: Mauthausen, the Horror on the Danube (2000), offers new insight on the fate of Spanish Republicans and other resistance members in the main Austrian concentration camp.Robert H. Keyserlingk, Austria in World War II: An Anglo-American Dilemma (1988); William B. Bader, Austria Between East and West, 1945–1955 (1966); and Alice Hills, Britain and the Occupation of Austria, 1943–45 (2000), study the various strategic plans, international problems, and political decisions surrounding the reestablishment of Austria during and after World War II. Reinhold Wagnleitner (ed.), Understanding Austria: The Political Reports and Analyses of Martin F. Herz, Political Officer of the U.S. Legation in Vienna, 1945–1948 (1984), gives a detailed account of the first three years of occupation by one of the most insightful American postwar diplomats. Günter Bischof, Austria in the First Cold War, 1945–55: The Leverage of the Weak (1999), examines the diplomatic, military, political, legal, and economic questions confronting Austria and the Allies between 1945 and 1955. Reinhold Wagnleitner, Coca-Colonization and the Cold War: The Cultural Mission of the United States in Austria After the Second World War (1994; originally published in German, 1991), analyzes the impact of the U.S. reorientation policies toward Austria in the context of the Cold War and the development of a culture of consumption. David F. Good and Ruth Wodak (eds.), From World War to Waldheim: Culture and Politics in Austria and the United States (1999), gives a good overview of the leverage of a small state in the shadow of a superpower. F. Parkinson (ed.), Conquering the Past: Austrian Nazism Yesterday and Today (1989); Richard Bassett, Waldheim and Austria (1989); and Richard Mitten, The Politics of Antisemitic Prejudice: The Waldheim Phenomenon in Austria (1992), are critical studies of the inability of some Austrians to conquer their past.Kurt Steiner (ed.), Modern Austria (1981); and Kurt Richard Luther and Peter Pulzer (eds.), Austria, 1945–95: Fifty Years of the Second Republic (1998), examine political, social, economic, and cultural developments under the Second Republic. Melanie A. Sully, A Contemporary History of Austria (1990), is a short review of politics in the 1980s. Melanie A. Sully, Continuity and Change in Austrian Socialism: The Eternal Quest for the Third Way (1982); and Jim Sweeney and Josef Weidenholzer (eds.), Austria: A Study in Modern Achievement (1988), are also useful.Günter Bischof, Anton Pelinka, and Ferdinand Karlhofer (eds.), The Vranitzky Era in Austria (1999), discusses the problems of the first 10 years of the second grand coalition. Anton Pelinka, Austria: Out of the Shadow of the Past (1998); and Hella Pick, Guilty Victim: Austria from the Holocaust to Haider (2000), discuss the profound political changes in late 20th-century Austria.Reinhold F. Wagnleitner

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