Austria

Austria's political system operates through grand coalitions between the two major parties (SPO and OVP) for most of its post-war history — a consociational model designed to prevent the political instability that contributed to the country's absorption by Nazi Germany in 1938. The Freedom Party (FPO), founded partly by former Nazis, has periodically entered government and triggered EU diplomatic sanctions (2000), demonstrating the persistent tension between Austria's consensus-democratic structure and its populist undercurrent. The economy is heavily integrated with Germany — roughly 30% of exports go to Germany — creating a dependent relationship that transmits German economic cycles directly into Austrian growth figures. Austria's neutrality, constitutionally enshrined in 1955, was the price of Soviet withdrawal and remains politically sacrosanct despite shifting European security dynamics. Vienna hosts more international organisations than any city except New York, giving Austria diplomatic influence disproportionate to its economic weight.