AUSTRIA

Austria's elections are largely fair and free, though lax campaign finance rules can influence the outcome.

The private media covers politics freely, but governments have politicized the influential public broadcasting company.

Some discrimination against immigrants and non-EU residents is reported, despite laws to the contrary.

In recent years, Austria has struggled to balance an active labor market policy with waves of liberalization and privatization.

Traditionally low unemployment has risen, though it remains low by OECD standards. Corporate taxes have been lowered, supplementing other pro-business measures.

Income taxes disproportionately affect the middle class, though reform is planned. Balanced budget goals have been deferred in order to spur growth.

Austria's income equality has eroded in recent years, with anti-poverty measures taking a relatively low priority.

Poverty rates are stable, but unemployment support is low. Spending on family policy is high, but does not give women strong support in combining work and parenting.

Most citizens have excellent public health insurance, but rising costs are prompting structural reforms.

Pension expenditures are high, but fail to prevent old-age poverty.

Austria's security policy is based on permanent neutrality, a Cold War-era stance now tempered by the country's European Union membership.

A political backlash against immigration has led to increasingly restrictive laws regulating non-citizens' rights. Some integration policies have sought to mitigate these rules' effect, but have achieved modest results.

Once an environmental pioneer, Austria has more recently let economic concerns dominate.

The country uses a high share of renewable energy, and its environmental technology companies are international leaders. However, public funding for renewable energy has fallen.

R&D expenditures exceed the EU average. Schools have been criticized for tracking students at a very young age, limiting social mobility.

In part due to high ministerial autonomy, Austria's coalition-based central government engages in only modest strategic planning.

Proposals can be developed by ministers without chancellery input, though some coordination often takes place. RIAs focus on financial issues.

Traditional corporatist links between governments, labor and business groups have weakened in recent years.

Coalition disagreements can result in contradictory communication.

Governments generally have strong legislative success once intra-coalition consensus is reached.

In the period under review, nearly 99 percent of government-sponsored bills were adopted by parliament.

The Constitutional Court wields a significant potential veto power. The upper house, held by the opposition following elections in 2005, played a less important veto role.

The Austrian government typically acts as a follower rather than as a pioneer with respect to reform policies.

However, the country has sought to export its strict anti-nuclear policy approach.

Austria's government institutions have little in the way of internal self-monitoring mechanisms. The legislature's Court of Audit and Ombuds Office serve oversight roles.

A constitutional reform process, supported by the government and the opposition, closed in 2005 without significant results.

Although daily TV reports are focusing less often on government policy, two-thirds of Austrians say they are well-informed.

The parliament's oversight powers are limited, though both an audit office and Ombuds office exist.

The once-close relationship between businesses, labor groups and the government has weakened somewhat, but these social partnerships remain influential.