Political Changes in Austria

In its domestic policies Austria experienced a decade of continuity in which, despite some signs of wear and certain disputes, the "large coalition" made up of the People's Party and the Socialist Party managed to remain in power. The third party that existed during this period of re-establishing the state, the Communist Party (KPÖ), was consistently losing followers, and in 1959 did not gain enough votes to maintain a mandate in Parliament.

In the meantime, national liberal groups had formed a new political camp, initially with the "Verband der Unabhängigen" (Association of Independents - VdU) and then with the "Freiheitlichen Partei Österreichs" (Freedom Party of Austria - FPÖ), which, with just eight Members of Parliament, for years occupied a minority position.

In the mid 1960s a new generation of politicians, unburdened by the experiences of the pre-war period, grew into office. In the People's Party it was Minister of Finance Josef Klaus who would later form the first single-party-majority government of the People’s Party, ÖVP.

His counterpart in the camp of the Social Democrats was Bruno Kreisky, a charismatic politician who already played a part in the negotiations of the 1955 State Treaty with the Allied Forces. In the National Council elections of 1970 the People's Party lost its absolute majority. The Socialist Bruno Kreisky initially formed a minority cabinet, which enjoyed the support of the Freedom Party. In 1971 Kreisky gained a clear majority. As a single-party government the Socialists continued to pursue their policy of general liberalization and openness, while their efforts towards democratization and increased emancipation in a number of different areas found approval with their voters. With its strong international connections, the Kreisky government's foreign policy enhanced Austria's position in the world. The prevailing economic boom facilitated the Socialist Party's advance to a middleclass workers' party.

UN, Waldheim, Haider

The 1979 Vienna International Center, handed over to the United Nations as their third permanent headquarters, constituted an important milestone for Austria's international reputation. The promotion of Vienna as a center for international relations was borne out by major conferences hosted by the city, such as the SALT II Conference. As part of its active policy of neutrality Austria has since participated in a number of peacekeeping operations and also lent strong support to the Middle East peace process by acting as a mediator.

After thirteen years of the Kreisky government, a change in political weight began to manifest itself. Its misjudgment of the Austrian's fear of atomic energy, which became manifest when the establishment of a nuclear power plant at Zwentendorf was rejected in a referendum, and the ensuing growth of the ecological movements led to the Socialist Party's loss of the absolute majority in 1983. Bruno Kreisky resigned. His successor, Fred Sinowatz, formed a socio-liberal coalition with the Freedom Party.

In 1986 the socio-liberal coalition ran into problems when the Freedom Party elected a new party leader in the person of Jörg Haider, who abandoned the former liberal course. As a consequence, the new Socialist Chancellor, Franz Vranitzky, decided to discontinue his party's alliance with the FPÖ and to again seek a partnership with the People's Party. Together, the two leading parties bore the brunt of the international problems resulting from the Waldheim crisis. In economic affairs, Vranitzky steered a new course. Facing the problems of the nationalized industries, he showed willingness for privatization and paved the way for European integration within his party.

Toward the European Union

At the end of the 1980s Austria faced turbulent political times. The end of Communism meant the end of being constrained between two ideological and social systems. It was these tidings that Foreign Minister Alois Mock filed Austria's formal application for accession to the European Union in Brussels, one of the most historic events in the country’s post-war history. In a referendum held on June 12 1994 the Austrian population voted by a majority of 66.4 % for accession to the European Union. Since January 1 1995 Austria has been a full member of the EU; in the latter half of 1998 it held the Presidency of the EU Council for the first time.

It was also in the 1990s that the multiracial state of Yugoslavia disintegrated and brought unrest and war to the Balkans and the southern border of Austria. To help the victims of these wars, it established the exemplary Nachbar in Not (“Neighbor in Need”) relief program, which rendered much-needed assistance, both during the Bosnian war and during the fighting in Kosovo in 1999.