Austria

   

Democratic Government

#10

Vertical Accountability

#10
Austria falls into the upper-middle ranks (rank 10) in the area of vertical accountability.

Elections are free and fair, with impartial and effective electoral management bodies. All Austrian citizens living in Austria are allowed to vote. The major parties serve as gatekeepers, with few genuinely independent candidates playing significant political roles.

New campaign-finance regulations have made party financing more transparent. Parties’ organizational structures reflect Austria’s federal nature. The right-wing FPÖ party has consistently drawn the most support in polls.

Austria was the last EU member state to pass a freedom of information law. This was approved in 2024, and will take effect in 2025. Critics say it fails to address a number of important issues.

Diagonal Accountability

#17
Austria falls into the middle ranks internationally (rank 17) in the category of diagonal accountability.

Media freedom is guaranteed by the constitution, with regulations enforced by the court. Governments can exert some influence via subsidies, and by using public money to promote specific policies.

ORF, the public broadcasting company, dominates the media market. It is mandated to operate independently. The ÖVP-FPÖ government attacked it for not being “objective,” but conditions have not improved significantly in the years since. The print media sector is also highly concentrated.

Capital and labor interest groups play a strong policymaking role, but public trust in this organizations is falling. Social welfare and environmental groups are often influential, but to a lesser degree.

Horizontal Accountability

#7
In the category of horizontal accountability, Austria performs well (rank 7) in international comparison.

The audit office and data protection authority are independent and well-respected. Courts are independent of political influence, and governments comply even with decisions they disagree with.

Civil rights are guaranteed by the constitution, and broadly respected. NGOs have said the police discriminate against migrants. The FPÖ party blames migrants and refugees for negative developments ranging from crime to unemployment.

Public integrity ratings are good, but anticorruption groups criticize severe deficiencies with regard to transparency and integrity in government. Parliament has sufficient resources and powers to monitor the government and guide policy. Parliamentary investigations are effective.

Governing with Foresight

#17

Coordination

#18
In the category of coordination, Austria falls into the lower-middle ranks internationally (rank 18).

The Chancellor’s Office coordinates line ministries but has limited capacity to evaluate the policy content of proposals. The chancellor holds a “first among equals” position, lacking formal authority over other ministers. Strategic capacities are thus fragmented, with responsibility distributed among autonomous ministers and competing political parties.

Interministerial coordination mechanisms focus largely on specific issue areas. Informal coordination mechanisms are routinely used, especially within and between the governing parties.

States hold significant de facto power within the federal system. The federal government provides most of the funding for the states, but is weak with regard to enforcing its political will. National administrative tasks are often carried out by subnational agencies.

Consensus-Building

#20
Austria falls into the lower-middle ranks (rank 20) with regard to consensus-building.

Governments in some cases seek expert opinions, but tend to consult experts they already agree with. Scientists have criticized the government for inaction particularly on environmental issues.

Labor and business organizations have long played a powerful role. These social partners participate in parliamentary deliberations and the legislative review process, helping to shape important bills, especially when governments are internally divided.

Social welfare and environmental organizations have comparatively less influence, with the latter often focusing on public protest. The government has been slow to adopt transparency measures, with critics saying even the new Freedom of Information Act will do little to undo a tradition of secrecy.

Sensemaking

#11
Austria falls into the upper-middle ranks internationally (rank 11) in the category of sensemaking.

The Chancellery serves as the main strategic-planning unit. However, it lacks the specialized personnel to function as a comprehensive strategy unit and cannot issue instructions to other ministries. Foresight activities are ad hoc rather than systematic.

Regulatory impact assessments must accompany every legislative proposal, but often involve a simplified process. RIAs must assess the environmental and employment effects of legislation, along with their financial impact and other effects.

Laws are often published in draft form, allowing for comment by stakeholders including trade unions and economic interests. While monitoring systems allow for ex post evaluation of federal measures, some observers say these processes have not produced a commitment to higher quality standards.

Sustainable Policymaking

#10

Economic Sustainability

#8
Austria performs well in international comparison (rank 8) in the category of economic sustainability.

Resource consumption levels are high, but resource productivity has improved. Austria is one of only six EU states whose greenhouse gas emissions had not fallen by 2021. The post-2020 government has set more ambitious targets, including 100% of energy from renewables by 2030. Political compromises have undermined emissions-reductions efforts.

The country has a well-developed active labor market policy, and strong vocational training and retraining systems. Unemployment benefits are broadly accessible. However, youth and long-term unemployment remain persistent issues.

The tax system generates significant revenue, primarily through labor and consumption taxes, but is criticized for weak environmental incentives. The government has committed to reducing public debt, showing some success before the pandemic led to higher spending. The country has exceeded EU research and innovation spending targets.

Social Sustainability

#15
In the area of social sustainability, Austria falls into the middle ranks internationally (rank 15).

While tertiary attainment rates are comparatively low, the dual vocational education system is a strength. Educational inequity is a concern, and early childhood education is underdeveloped. Poverty rates are middling. Access to social housing is expected to be a problem in the future.

Healthcare in Austria is of high quality but faces challenges, including a shortage of doctors and long waiting times. People with private health insurance often receive faster or even better care. Gender inequalities persists, including a significant gender pay gap. Conservative family policies are reinforced by limited public childcare availability.

Austria’s pension system is generous, but retirement-age reforms are needed. Migrants face difficulties integrating into the labor market, and children from migrant families tend to be placed in lower-performing schools. NGOs report police violence against noncitizens.

Environmental Sustainability

#11
In the area of environmental sustainability, Austria falls into the upper-middle ranks (rank 11).

The government has committed to achieving climate neutrality by 2040, and has steadily increased its environmental and climate policy budget. However, greenhouse gas emissions have hardly fallen since 1990, and have increased substantially in the traffic sector. Coalition parties have been unable to agree on emissions limits in specific sectors.

A CO2 pricing scheme has been introduced, but experts say costs are too low to drive significant behavioral changes. Air pollution is a major issue in alpine valleys and cities, though the country excels in other areas, such as drinking water quality. Climate protection is increasingly linked to health policy.

Austria’s track record on protecting biodiversity and implementing international environmental agreements is mixed, in part due to the complex federal system. The country has high rates of “emergency” use of banned pesticides, and has struggled to meet EU Natura-2000 goals.
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