{"id":34845,"title":"Infelix Austria? The Complex Realities Behind the Upcoming Austrian Elections","link":"https:\/\/bst-europe.eu\/de\/europe-in-the-world\/infelix-austria-the-complex-realities-behind-the-upcoming-austrian-elections\/","date":"4. September 2024","date_unix":1725449067,"date_modified_unix":1747996312,"date_iso":"2024-09-04T11:24:27+00:00","content":"

The concept of \u201c<\/em>tu felix Austria<\/em><\/a>\u201d or \u201chappy Austria\u201d was coined by Emperor Maximilian I during his 16th century reign when he expanded the Habsburg territories through marriages, rather than war. In modern times, Austria has often been praised as one of Europe\u2019s most economically advanced countries. It is admired for its high standard of living, societal equality, including incomes, and world-class public services. The country boasts an excellent social system, affordable and punctual public transport, and a rich cultural heritage that makes it a top destination for international tourists. <\/em>Vienna<\/em>, the impressive capital city, <\/em>regularly ranks highly as one the best places to live<\/em><\/a> in the world. <\/em><\/p>\n

Yet, despite the country\u2019s many advantages, the concept of \u201ctu felix Austria\u201d is being challenged. There is a growing sense of dissatisfaction is sweeping through the Austrian population, potentially leading to seismic shift in the political landscape.<\/p>\n

As the 29 September Nationalratswahlen (National Council elections) approach, Austria finds itself on the brink of a significant political transformation. The right-wing populist Freedom Party (FP\u00d6) is poised to emerge as the leading party, followed by the conservative People\u2019s Party (\u00d6VP) and the Social Democrats (SP\u00d6) locked in a tight race, each hovering around 20 percent of the vote.<\/p>\n

The Greens, who govern in coalition with the \u00d6VP, are likely to fall below 10 percent and could be overtaken by the liberal party, NEOS. The Beer Party, a satirical project, and the communist party KP\u00d6 could enter parliament too. However, the election campaigns have only just started and past polling scandals<\/a> have cast doubt on these projections, so the outcome is still uncertain.<\/p>\n

But one thing that is certain is the potentially profound consequences of this election. If the FP\u00d6 becomes the leading party for the first time, Austria could see the rise of a right-wing, Eurosceptic government, with the added complication of a fragmented political landscape that could require a three-party coalition to govern effectively. But what has led Austria, a nation that seems to have it all, to this precarious point?<\/p>\n

1. Stagnation in economic development<\/h2>\n

Austria\u2019s economy, while superficially robust, is facing significant challenges that have fuelled public discontent. The COVID-19 pandemic hit Austria harder than the EU average, particularly affecting its important tourism sector.<\/p>\n

The economic decline was followed by a smaller, slower recovery with a negative GDP growth in 2023. This performance was worse than Germany\u2019s situation, with whom Austria\u2019s economy is deeply intertwined, and that of Italy, Austria\u2019s second most important trading partner.<\/p>\n

The government responded to COVID-19 by stabilising demand and supply<\/a>, even though only supply was affected by the economic shock of the pandemic. Support measures were massive in volume and created a proliferation of zombie firms<\/a> \u2013 unproductive businesses that rely on government aid to survive. This is evidenced by the low exit rate<\/a> of firms, a figure that is now on the rise with the withdrawal of state assistance.<\/p>\n

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