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Election Date: October 1, 2006

At stake: National Council

Background

Austria was once part of the Hapsburg Empire, and became a partner in the Austro-Hungarian Empire in the 19th Century. In 1920, a new constitution created the Republic of Austria.

In 1938, Nazi Germany annexed Austria. Soviet troops would liberate Vienna in 1945, and Austria was occupied by soldiers from the Soviet Union, Britain, the United States and France.

In 1955, the State Treaty established Austria as an "independent but neutral" state, and the country joined the United Nations (UN). In 1986, Kurt Waldheim became Austria's president. The candidacy of Waldheim—a former UN secretary-general—provoked worldwide debate over his role in the German armed forces during World War II.

In 1994, voters endorsed Austria's accession into the European Union (EU). In October 1999, the far-right Freedom Party of Austria (FPO) saw substantial gains in the legislative vote and became part of a governing coalition with the Austrian People's Party (OVP). The FPO's anti-immigration agenda eventually led to diplomatic sanctions by the EU.

Wolfgang Schuessel of the OVP has acted as federal chancellor since February 2000. In the November 2002 parliamentary ballot, the OVP elected 79 lawmakers to the 183-seat National Council and formed a coalition government with the FPO after talks with the Social-Democratic Party of Austria (SPO) and Greens (Grune) broke down.

In April 2004, SPO member Heinz Fischer won the presidential election with 52.41 per cent of the vote in a contest against Benita Ferrero-Waldner of the OVP. The president is conventionally regarded as a ceremonial dignitary in the European country.

Click here for Austria 2004 Election Tracker

In April 2005, former FPO leader Joerg Haider assembled the Alliance for Austria's Future (BZO), which effectively took the Freedom Party's place in the governing coalition.

2006 National Council Election

In January 2006, Social-Democratic Party of Austria (SPO) leader Alfred Gusenbauer described a top-level conference aimed at generating support for the proposed European Constitution as an "elitist, absurd theatre."

On May 21, Joerg Haider resigned as leader of the Alliance for Austria's Future (BZO), and announced that Peter Westenthaler—who had previously served as the parliamentary leader of the Freedom Party of Austria (FPO)—would take his place.

In April 2006, the National Council held a special session to discuss Nazism, violence and racism. Greens (Grune) leader Alexander Van der Bellen declared that although threats and discrimination against Jews had been uncovered before 1938, the authorities at the time failed to deal with the situation.

Also in April, the Bank for Employment and Commerce (BAWAG) revealed it lost close to $1.26 billion U.S. in currency speculation deals in the Caribbean. BAWAG, which was founded in 1922 by SPO member and chancellor Karl Renner, counts the Austrian Trades Union Federation (OEGB) as its main stakeholder, and has 1.3 million customers.

On Apr. 26, chancellor and Austrian People's Party (OVP) leader Wolfgang Schuessel suggested that the OEGB/BAWAG affair could become an election issue, adding, "Nobody wants to weaken the OEGB, but there should be a debate about accountability."

On Jun. 13, Austrian finance minister Karl-Heinz Grasser ruled out selling BAWAG to "speculators", adding, "I expect that the OEGB is going to implement in the process of the sale its declared values regarding Austria as a business location, regarding Austrian jobs. (I expect) that an Austrian headquarters is secured, that Austrian jobs are secured."

In June, Schuessel expressed satisfaction with Austria's EU presidency, declaring, "We were very concerned about gaining European citizens' trust after the setback of the European Constitution, and the divisions created on a number of important issues."

On Jul. 12, all parties agreed to dissolve the National Council and hold the legislative election on Oct. 1—eight weeks ahead of schedule.

On Jul. 17, SPO member Christoph Matznetter said current financial minister Karl-Heinz Grasser "failed to maintain the proper financial oversight on BAWAG's business transactions." The Greens have called for a parliamentary inquiry into ties between Grasser and banker Wolfgang Floettl, after it was revealed that the two men shared a holiday last summer. Grasser has said he did not discuss "baking issues" with Floettl during the trip.

Every Austrian political organization that does not currently have representation in the National Council had to gather 2,600 signatures of support before Aug. 25 to be included in the ballot. Three groups—the FPO, the Communist Party of Austria (KPO) and an independent list headed by European lawmaker Hans-Peter Martin—succeeded in this quest.

The KPO list of candidates includes three names: Srboljub Patkovic, Gertrude Koppauer and Stefan Wetschka. The party has not entered the National Council in the past 47 years.

A July poll by OGM placed the OVP in first place with 40 per cent, followed by the SPO with 36 per cent, the Greens with 12 per cent, the FPO with eight per cent, and the BZO with three per cent.

On Aug. 3, Schuessel expressed doubts about the future of the European Union (EU), saying, "The EU should put a halt to the enlargement process in the Balkans. I don't believe the accession negotiations with especially Turkey will result in EU membership."

On Sept. 1, FPO leader Heinz-Christian Strache said he considered himself as a potential head of government, saying, "If the FPO finishes in third place and the SPO does not want Schuessel as chancellor, then they could have Strache as chancellor."

On Sept. 5, Schuessel criticized the social measures package presented by the BZO, claiming the party was wrong in offering "treats" to the electorate. BZO leader Peter Westenthaler said the OVP had shown "no heart for people who needed help" but refused to rule out a post-election coalition.

On Sept. 6, SPO leader Alfred Gusenbauer and FPO leader Heinz-Christian Strache participated in a televised debate. Gusenbauer confirmed that his party would not seek help from the FPO in order to form the next government, and accused Strache of making "xenophobic statements" to win votes. Strache said the SPO and the OVP have attempted to "to politically isolate and sideline" his party.

Also on Sept. 6, Greens leader Alexander van der Bellen participated in a debate with financial minister Karl-Heinz Grasser. Van der Bellen urged for more investment in the areas of alternative energy, social services and education. Grasser referred to the Greens as a "tax-heavy party."

On Sept. 8, van der Bellen criticized the current coalition, saying, "The government parties, black and orange, do not pay attention to large problems. And if one does not notice the problems, he has no desire to solve them."

On Sept. 13, SPO leader Alfred Gusenbauer said recent allegations regarding banker Wolfgang Floettl could amount to "a plot to discredit" his party before the election. The SPO has denied claims that Floettle was a contributor to the political organization in the late 1990s.

On Sept. 14, Schuessel expressed satisfaction with the country's achievements during the last legislative period, saying, "The enlargement of the European Union (EU) catapulted Austria from the periphery to the centre. This year, we'll break the 100 billion euro barrier (in exports to the Central and Eastern European region) for the first time."

Also on Sept. 14, agricultural minister Josef Proell and FPO leader Heinz-Christian Strache took part in a televised debate. Proell said the OVP has ruled out a post-election coalition with the FPO, and said Strache was surrounded by a "wasteland of personnel."

Polls conducted in early and mid-September by Gallup, OGM and IGF placed the OVP in first place with 38 or 39 per cent.

In September, Schuessel proposed opening the domestic labour market to allow nurses from the eight eastern European countries that joined the European Union (EU) in 2004 to work in Austria. While the SPO, the FPO and the BZO rejected the plan, the Greens endorsed it, arguing that many workers from these countries are already in Austria.

On Sept. 18, Schuessel discussed his record on gender issues, saying, "If I were a leftist, masses of feminists would be at my feet in praise." On Sept. 21, Greens deputy leader Eva Glawischnig called the chancellor's remarks "a mockery."

On Sept. 25, Martin accused Liberal Forum (LIF) leader Alexander Zach of having business ties to European weapons producer EADS. While the LIF is not contending, Zach is one of the candidates featured in the SPO list.

On Sept. 26, justice minister Karin Gastinger resigned from the BZO, saying she did not support the party's stance on immigration, and claiming the political organization had become "xenophobic." BZO leader Peter Westenthaler said he was "surprised" by Gastinger's decision.

Polls released on the final week of the campaign by Gallup, OGM and Market gave the OVP an advantage of at least two points over the SPO.

On Sept. 28, the main party leaders participated in a televised debate. Schuessel said he would turn Austria into "a model among European countries in social development." Gusenbauer said his priorities are "job creation and a reform to the medical system."

Voting took place on Oct. 1. The Social-Democratic Party of Austria (SPO) finished in first place with 35.71 per cent of the vote and 68 lawmakers, followed by the governing Austrian People's Party (OVP) with 34.33 per cent and 66 legislators. SPO leader Alfred Gusenbauer celebrated, declaring, "We have reached our election goal: We are in first place."

On Oct. 11, Gusenbauer was asked to form the next government. The negotiations for the composition of the new administration were expected to go on for weeks.

On Dec. 13, Gusenbauer said a new administration would be ready by mid-January, declaring, "People have a right to see the formation of the government at the beginning of next year. We'll do everything possible to make it happen by that date."

On Jan. 8, 2007, Gusenbauer and Schuessel announced that a deal had been finalized to form a "Grand Coalition" government. Gusenbauer, who will become prime minister, declared, "Both of our working groups have drawn up a very comprehensive working program for the next four years." The OVP will be in charge of naming the finance, foreign, economy and interior ministers, while the SPO will choose the justice minister.

On Jan. 11, Gusenbauer was formally sworn in as the country's new federal chancellor. The last SPO member to hold the position was Viktor Klima from January 1997 to February 2000. The new cabinet features interior minister Guenther Platter, foreign minister Ursula Passnik, defence minister Norbert Darabos and finance minister Wilhelm Molterer. Schuessel will serve as interior minister.

Political Players

Federal President: Heinz Fischer - SPO
Federal Chancellor: Alfred Gusenbauer - SPO

The president is elected to a six-year term by the people.

Legislative Branch: The Parlament (Parliament) has two chambers. The Nationalrat (National Council) has 183 members, elected to four-year terms by proportional representation. The Bundesrat (Federal Council) has 64 members, chosen to serve four to six-year terms by the provincial legislatures.

Results of Last Election:

President - Apr. 25, 2004

National Council - Oct. 1, 2006

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