Politics

Political system
The Parliament of Austria is located in Vienna, the nation's largest city and capital. Austria became a federal, parliamentarian, democratic republic through the Federal Constitution of 1920. It was reintroduced in 1945 to the nine states of the Federal Republic. The head of state is the Federal President, who is directly elected by popular vote. The chairman of the Federal Government is the Federal Chancellor, who is appointed by the president. The government can be removed from office by either a presidential decree or by vote of no confidence in the lower chamber of parliament, the Nationalrat.
The Parliament of Austria consists of two chambers. The composition of the Nationalrat is determined every five years by a general election in which every citizen over 16 years (since 2007) is allowed to vote to fill its 183 seats. A recent extension of that term from four to five years will become effective after the next election. While there is a general threshold of 4 percent for all parties at federal elections (Nationalratswahlen) , there remains the possibility to gain a direct seat, or Direktmandat, in one of the 43 regional election districts. The Nationalrat is the dominant chamber in the formation of legislation in Austria. However, the upper house of parliament, the Bundesrat has a limited right of veto (the Nationalrat can — in almost all cases — ultimately pass the respective bill by voting a second time. This is referred to as 'Beharrungsbeschluss, lit. "vote of persistence"). A convention, called the Österreich -Konvent was convened in June 30, 2003 to decide upon suggestions to reform the constitution, but has failed to produce a proposal that would receive the two thirds of votes in the Nationalrat necessary for constitutional amendments and/or reform. However, some important parts of the final report were generally agreed upon and are still expected to be implemented.

Recent political developments
In February 2000 the conservative People's Party formed a coalition with the controversial nationalistic Freedom Party, headed by Jörg Haider. The (at that time) 14 other member states of the European Union - but not the EU itself - condemned Austria's new coalition and froze diplomatic contacts. These measures were commonly referred to as "sanctions" although they were more or less just motions of diplomatic unfriendliness. Given the controversy, Haider chose not to join the government, but he continued to wield influence from the sidelines. This was not, however, the first time that the Republic of Austria had displeased international opinion. In 1986, the population voted for Kurt Waldheim as president despite his revelation that he had been active in the Wehrmacht as an intelligence officer during World War II
In September 2002, the coalition between the People's Party and the Freedom Party dissolved after a shake-up in the Freedom Party. In November 2002, the People's Party made large gains in general elections again. After a lot of coalition talks with other parties, the People's Party again formed a government with the Freedom Party in February 2003 with Wolfgang Schüssel as Chancellor.
After general elections held in October 2006, the Social Democrats emerged as the largest party, whereas the People's Party lost about 8% in votes. Political realities prohibited any of the two major parties from forming a coalition with smaller parties. In January 2007 the People's Party and Social Democrats formed a Grand Coalition with the social democrat Alfred Gusenbauer as Chancellor.

Foreign policy



The 1955 Austrian State Treaty ended the occupation of Austria following World War II and recognized Austria as an independent and sovereign state. In October 1955, the Federal Assembly passed a constitutional law in which "Austria declares of her own free will her perpetual neutrality." The second section of this law stated that "in all future times Austria will not join any military alliances and will not permit the establishment of any foreign military bases on her territory." Since then, Austria has shaped its foreign policy on the basis of neutrality.
Austria began to reassess its definition of neutrality following the fall of the Soviet Union, granting overflight rights for the UN-sanctioned action against Iraq in 1991, and, since 1995, contemplating participation in the EU's evolving security structure. Also in 1995, it joined the Partnership for Peace and subsequently participated in peacekeeping missions in Bosnia.
Austria attaches great importance to participation in the Organisation for Economic Co-operation and Development and other international economic organizations, and it has played an active role in the Organization for Security and Cooperation in Europe (OSCE).

Energy politics
In 1972, the country began construction of a nuclear-powered electricity-generation station at Zwentendorf on the River Danube, following a unanimous vote in parliament. However, in 1978, a referendum voted approximately 50.5% against nuclear power, 49.5% for, and parliament subsequently unanimously passed a law forbidding the use of nuclear power to generate electricity.
Austria currently produces more than half of its electricity by hydropower. Together with other renewable energy sources such as wind, solar and biomass powerplants, the electricity supply from renewable energy amounts to nearly 80% of total use in Austria. The rest is produced by gas and oil powerplants.