Austria

Famous for its spectacular mountain scenery, Austria is no longer the dominant political force it was in Central Europe under the Hapsburg dynasty which ruled until the first world war.

However, it remains strategically important as it sits on the key Danube trade route and acts as a bridge between East and West.

OVERVIEW

Together with Switzerland, Austria forms Europe's neutral core. After annexation by Nazi Germany in 1938 and then Allied occupation, Austria's 1955 State Treaty declared the country "permanently neutral". There were some questions surrounding this when two thirds of voters supported EU membership in a referendum in 1994 and entry followed in 1995.

The entry into Austria's coalition government of the far-right Freedom Party in February 2000 sent shockwaves across Europe. Austria's relations with the European Union were severely strained after some states imposed sanctions in protest. These were lifted some months later.

The capital, Vienna, hosts a number of international organisations, including the OSCE Secretariat, the International Atomic Energy Agency and the Organisation of Petroleum Exporting Countries.

Austria has a very rich cultural heritage. Wolfgang Amadeus Mozart occupies a place of his own as composer of some of the best loved European classical music while the works of Franz Schubert enjoy great popularity too. In the world of philosophy and ideas, Siegmund Freud continues to provoke controversy while Ludwig Wittgenstein was one of the major influences in 20th century thinking. In fine art, the paintings of Gustav Klimt are widely admired.

FACTS

• Population: 8.1 million (UN, 2005)
• Capital: Vienna
• Area: 83,871 sq km (32,383 sq miles)
• Major language: German
• Major religion: Christianity
• Life expectancy: 75 years (men), 81 years (women) (UN)
• Monetary unit: 1 Euro = 100 cents
• Main exports: Machinery, metals, paper, textiles, food, livestock
• GNI per capita: US $26,720 (World Bank, 2003)
• Internet domain: .at
• International dialling code: +43

LEADERS

President: Heinz Fischer

A centrist politician committed to the welfare state and Austrian neutrality, Mr Fischer was elected to the largely ceremonial presidency in April 2004.

He defeated Foreign Minister Benita Ferrero-Waldner who was nominated by Chancellor Schuessel and who had the backing of the Freedom Party.

Chancellor: Wolfgang Schuessel

Mr Schuessel led his People's Party to its biggest electoral success in two decades at the polls in November 2002.

However, the People's Party did not gain enough votes to form a government on its own and embarked on a complex round of coalition talks with the Social Democrats and Greens. These talks failed and in the end Mr Schuessel turned again to the far-right Freedom Party.

He had faced a wall of resistance at home and abroad when his party first entered a coalition with the same party in early 2000. During over two years of that partnership, Mr Schuessel is widely seen as having moved to the right, notably on asylum and immigration issues.

The Freedom Party split in April 2005 when its former leader, Joerg Haider, left to set up the Alliance for Austria's Future. Members of both groups remain in government.

In autumn 2003 Mr Schuessel's government introduced a package of asylum laws which are seen as among the most restrictive in Europe.

• Foreign minister: Ursula Plassnik
• Interior minister: Liese Prokop
• Finance minister: Karl-Heinz Grasser