Austria Federal state
| AUSTRIA | / HISTORY |
History and trends
Austria is a semi-presidential republic. The federal constitution was adopted in 1920, but was reinstated in 1 May 1945.
Having been stripped of some of its territories, Austria was annexed by Nazi Germany (Anschluss) in 1938. Austria’s parliament declared the country permanently neutral in 1955 and it joined the European Union in 1995. Both social-democrats and conservatives form alliances on the principle of proportionality or power-sharing. The result is a highly stable political system that has managed to contain the threat of extreme right-wing populists since the mid-1990s – a movement that has gained traction against since 2008.
Contrary to the situation in Germany, Austria’s federal government (or Federation) has highly centralist tendencies.
The federal state has extensive tax-levying and spending powers. Central government dominance can be explained by the fact that many local government powers are, in fact, devolved federal powers. For this reason, the Austrian model of federalism is often referred to as “indirect federal government”.
Regional level :
Austria is divided into nine states (Länder), each with its own constitution, assembly and government. Members of the state legislative assemblies (or parliaments) are elected via universal suffrage. The assembly elects the state government and its president (the governor), and appoints members of the second chamber of the federal parliament (the Bundesrat).
The city of Vienna enjoys special status because it is both a state and a municipality and the municipal council is also the legislative assembly.
Austria’s states have much broader powers than their German counterparts. Their remit is strictly regulated by the federal constitution. Most of their budget comes directly from the federal government, under a negotiated four-year settlement known as “revenue sharing”.
The states cannot pass legislation amending the general organisation of local governements without the federal government’s consent. Notably, restrictions of this type are few and far between in federal systems.
Most of the powers enjoyed by the states are devolved federal powers. The state parliaments have the power to pass legislation in areas such as welfare, environmental conservation, building regulations and regional planning.
The state government has executive powers in the areas that fall under the state’s specific remit, and acts on the federal government’s behalf where there is no federal authority with such powers at the state level. The state governor and the state departments under the governor’s authority are the executive bodies of the federal government within the state.
This system, known as “indirect federal government”, means that the federal government has significant influence over individual state policy.
Local level :
There are 2,100 municipalities in Austria. They are both local governements and state administrative districts. Each municipality typically has three bodies:
- the municipal council
- the local executive board
- the mayor
There are also around 1,000 inter-municipal consortia.
In addition, Austria has 94 district administrative authorities, including 15 “special status” cities that form their own districts.
Inter-municipal cooperation is extensive. Many smaller municipalities cooperate and set up joint bodies to run basic infrastructure. This form of inter-municipal cooperation is generally funded by the state and federal governments, but is subject to strict controls: municipal associations and inter-municipal consortia must be approved by the state authorities and, in many cases, by the federal government.
In addition, article 120 of the federal constitution states that municipalities may form consortia, known as “territorial municipalities”, with extensive powers. However, widespread resistance to the concept of local self-governance has meant that no such “territorial municipalities” have yet been formed.
Lastly, two local government associations – the Austrian Association of Cities and Towns and the Austrian Association of Municipalities – play a significant role and were recognised in the constitution in 1998. These associations are involved in periodic discussions around “revenue sharing” arrangements.
It remains to be seen how Austria’s political and administrative landscape will change in the future.
Aside from the Administration Innovation Programme (Verwaltungs-Innovations-Programm, VIP), the federal government has signalled its intent to concentrate more decision-making power at the local level.
The proposed amendments to the constitution include enshrining the “Conference of State Governors”, abolishing the indirect federal government system, including a (non-exhaustive) list of state powers, and giving states sufficient leeway to create new state bodies or modify their existing bodies. However, there is strong resistance to change and to greater local self-government.