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Far-right victory in Austrian presidential vote shocks Europe

Far-right presidential candidate Norbert Hofer easily won the first round of Austria's presidential election. (Facebook)
Far-right presidential candidate Norbert Hofer easily won the first round of Austria’s presidential election. (Facebook)

On a day when Serbians reelected their pro-European government in landslide, the spotlight suddenly fell on Austria instead.austria flag

Norbert Hofer, the candidate of the anti-immigrant, far-right Freiheitliche Partei Österreichs (FPÖ, Freedom Party of Austria), easily won the first round of Austria’s presidential election, while the candidates of the two governing parties fell to fourth and fifth place.

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Hofer’s first-round lead of more than 10% shocked not only Vienna, but the entire European Union.

At age 45, Hofer is not nearly as well known as some of the Freedom Party’s top officials, including its leader, Heinz-Christian Strache. But his fresh-faced appeal might have improved the party’s chances, in contrast to one of the FPÖ’s more established figures. Austria has admitted more refugees, on a per-capita basis, than even Germany, and Hofer spent much of his campaign trashing Austria’s willingness to pay more into the European Union than it receives in return, stoking anger over bailouts to Greece and other member-state with crippling debt. Continue reading Far-right victory in Austrian presidential vote shocks Europe

Häupl holds off far-right threat in Vienna elections

Vienna's Social Democratic mayor, Michael Häupl, has held power since 1994. (Hans Punz/aPA)
Vienna’s Social Democratic mayor, Michael Häupl, has held power since 1994. (Hans Punz/aPA)

Sometimes, what doesn’t happen in an election matters more than what does happen.austria flag

So it was in Vienna on Sunday, when Michael Häupl, the longtime center-left mayor held onto power. That’s not so surprising, because his Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) has controlled Vienna’s state government in every election in the postwar era.

What’s more, though polls showed that the far-right Freiheitliche Partei Österreichs (FPÖ, Freedom Party of Austria) was trailing the Social Democrats by just 1% in the week before Vienna’s elections, the Freedom Party actually lost by nearly 10%. Though the Freedom Party’s result marks a gain against its prior result in 2010, and its strength is growing amid the backdrop of Europe’s migration and refugee crisis, its failure in Vienna is notable.

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After an election campaign that pitted Häupl in competition directly with the Freedom Party’s leader Heinz-Christian Strache, the far right’s failure to break through should come as a relief to Austria’s entire political mainstream, of both right and left. Had Strache won the election, it would have shaken the foundations of the grand coalition that governs Austria under Social Democratic chancellor Werner Faymann.

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Vienna, aside from being Austria’s capital, is also the country’s largest state, with 1.8 million of Austria’s 8.6 million people, so elections for the Landtag invariably influence the national political climate. Die Grünen (the Greens/Green Alternative), the third-placed party, won enough seats to give the SPÖ-led coalition a majority in the state assembly. Continue reading Häupl holds off far-right threat in Vienna elections

Freedom Party surges in Upper Austria with its gaze fixed on Vienna

Freedom Party leader Heinz-Christian Strache is all smiles campaigning during Oktoberfest.
Freedom Party leader Heinz-Christian Strache is all smiles campaigning during Oktoberfest.

Amid the refugee crisis that has strained European borders, internal and external, since late summer, there’s increasing discussion of using formal diplomatic sanctions against Hungarian prime minister Viktor Orbán for his intransigence in dealing with migrants, many of whom are Syrians fleeing years of civil war or otherwise miserable refugee camps in an overburdened Lebanon.austria flag

The last time that the European Union assessed diplomatic sanctions, however, was in 2000, when it chided Austria for letting the far-right Freiheitliche Partei Österreichs (FPÖ, Freedom Party of Austria) into government.

But in the first electoral test for the eastern European countries at the heart of the migrant crisis, it was the FPÖ that emerged as the clear winner, surging 9% to second place in Oberösterreich (Upper Austria)’s regional elections and winning 18 of the regional parliament’s 56 seats.

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Its leader, Heinz-Christian Strache, already had reason to be pleased with himself after taking the party to third-place status in Austria’s national parliamentary elections in September 2013.

His party only narrowly lost to the long-dominant center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), which has controlled the state government since 1945, and whose leader, Josef Pühringer, has served as the state’s governor since 1995. Though its population is just 1.44 million, the state is Austria’s industrial heartland and the country’s third-most populous state, and it borders Germany’s Bavaria and the Czech Republic. The  center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) of Austrian chancellor Werner Faymann fell to third place.

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Since 2003, the Austrian People’s Party has governed Upper Austria in a so-called ‘black-green’ coalition with Die Grünen (the Greens/Green Alternative). Though the Greens actually improved on their support from the most recent election in 2009, the ÖVP’s loss of seven seats means that their partnership is two seats short of a majority in the unicameral Landtag. Pühringer will have to form a minority government, looking to the Social Democrats or the Freedom Party for support on a case-by-case basis or otherwise enter into negotiations for a ‘grand coalition’ with the Social Democrats. Continue reading Freedom Party surges in Upper Austria with its gaze fixed on Vienna

Who is Sebastian Kurz? Meet Austria’s new 27-year-old foreign minister.

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While most of Europe was watching the birth of Germany’s latest grand coalition government last week, Austria’s grand coalition also finalized its government platform.austria flag

Austria, which has an even stronger tradition of cozy coalition politics between the center-left and the center right, will continue to a coalition that’s comprised of its main center-left party, the Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) and its main center-right party, the Österreichische Volkspartei (ÖVP, Austrian People’s Party).

There was very little unexpected news about the coalition deal, which will continue the broadly centrist course of center-left chancellor Werner Faymann’s government.

But the decision to elevate the hunky 27-year-old Sebastian Kurz as Austria’s new foreign minister was something of a shock.  Michael Spindelegger, the ÖVP leader and deputy chancellor, who previously served as foreign minister between 2008 and 2013, will become the government’s new finance minister.

The decision leaves Kurz (pictured above) as one of the world’s youngest political leaders in such a high policymaking role.

So who is this whiz kid?  Kurz became involved in politics at age 10, and by 2009, he was the leader of the youth wing of the Austrian People’s Party.  In 2010, he was elected to the city council of his native Vienna, running under the slogan, ‘Schwarz macht geil‘ (‘Black is cool,’ referring to the color most associated with the People’s Party) in a campaign Hummer that quickly gained the nickname as the ‘Geilomobil‘ (which translates roughly to ‘Horny-mobile’), befitting Kurz’s growing reputation as somewhat of a party animal.  Before you judge him too harshly, however, remember that it was part of a wider push to make the ÖVP more attractive to young voters. And just four months ago, two competing leaders of the Austrian far right both posed shirtless in public.

But by 2011 he was already serving as state secretary for integration, where he impressed skeptics by working to ease the path for the growing number of immigrants to Austria, including through the institution of an extra year of pre-school for immigrant children to learn German.  He helped spearhead a new immigration law in May of this year that clears a path to citizenship for some immigrants within six years.

It was a controversial move on Spindelegger’s part, but it paid off, and Kurz was elected to the Nationalrat (National Council), the chief house of the Austrian parliament, in the September 29 parliamentary elections with a higher number of votes than any other candidate. 

His approach contrasts with that of the more xenophobic approach to immigration of Austria’s far right.  In  September, the Social Democrats won 27.1% and the Austrian People’s Party won 23.8%, but the anti-immigrant, anti-EU Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) won 21.4%, a strong third-place finish.  But a Dec. 12 Hajek poll showed that if the elections were held over today, the Freedom Party would emerge as the leading party with 26%, followed by the Social Democrats with 23% and the Austrian People’s Party at 20%.  A new free-market libertarian partyDas Neue Österreich (NEOS, The New Austria), which entered the National Council for the first time in September’s elections, would win 11%.

The Freedom Party’s relatively young and charismatic leader, Heinz-Christian Strache, wasted no time in criticizing Kurz for his inexperience:

“When Mr Kurz becomes foreign minister without any diplomatic experience, you have to be amazed. This is the continuation of Austria’s farewell to foreign policy,” right-wing leader Heinz Christian Strache told parliament on Tuesday.

Kurz… took the blows.  “It’s true, of course. Due to my age I have limited experience and of course hardly any diplomatic experience. But what I bring is lots of diligence, energy and the desire to contribute something,” he told Reuters.

But Kurz emphasized the international nature of his previous role with respect to integration, and he argued that his relative youth and high media profile would allow him to make an immediate impact.  Though Austria, with just 8.5 million people, has a less dominant voice on European matters than Germany, it plays a key role in the Balkans, where Serbia and other former Yugoslav countries are hoping to begin accession talks to the European Union early next year. (If your German skills are up for it, here’s an interview with Kurz in Der Standard earlier this week).

Kurz’s appointment also means that he will likely take a key role in the upcoming European Parliament elections by convincing Austrian voters not to turn to euroskeptic parties like the Freedom Party or Team Stronach, the conservative movement of Austro-Canadian businessman Frank Stronach.  Spindelegger was criticized during his tenure at the ministry for being a ‘half-time foreign minister’ in light of his duties as the ÖVP leader and deputy chancellor. Continue reading Who is Sebastian Kurz? Meet Austria’s new 27-year-old foreign minister.

Austrian election results: grand coalition reelected, Freedom Party solidifies gains on far right

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With nearly all of the votes counted in Austria’s election today, it appears that the current grand coalition led by center-left chancellor Werner Faymann will continue — for up to another five years.austria flag

Just one week after Germans massively supported chancellor Angela Merkel and her center-right Christian Democrats for steering Germany largely unscathed through the worst of the economic crisis, Austrians appeared ready to do the same for Faymann, though his Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) did not score the kind of overwhelming victory that Merkel’s Christian Democrats won last week — the SPÖ lost over 2% of the vote since the September 2008 election.

But their coalition partners, the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), also lost 2.2% of the vote from 2008.  Together, however, the two parties won enough seats (99) to continue to hold an absolute majority in Austria’s 183-member Nationalrat (National Council), the chief house of the Austrian parliament.

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But the far-right, anti-EU, anti-immigrant Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) won just four seats less than the People’s Party and it won over 21% of the vote.  That’s largely because voters on the far right abandoned the Bündnis Zukunft Österreich (BZÖ, Alliance for the Future of Austria), the splinter group that former Freedom Party leader Jörg Haider founded in 2005.

Believe it or not, today’s election was the first one without Haider in nearly two decades following his sensational death in October 2008, and the BZÖ lost over 7% from the 2008 election — and missed the 4% electoral hurdle required to hold seats in Austria’s National Council.  Given Haider’s absence from the political scene, many BZÖ supporters turned back to the Freedom Party.  In any event, it’s certainly a huge victory for FPÖ leader Heinz-Christian Strache (pictured above), whose party gained more support than any of the parties that contested the 2008 election.  Strache is one of the big winners in today’s election, and that will amplify his voice as the chief opposition leader in Austria.

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Continue reading Austrian election results: grand coalition reelected, Freedom Party solidifies gains on far right

Austria election tomorrow likely to result in grand coalition, reelection for Faymann

Austria goes to the polls tomorrow to select 183 members of the Nationalrat (National Council), the lower house of Austria’s parliament — but by far the most important.  What better musical selection than Johann Strauss II’s Kaiserwaltzer?austria flag

Austria’s elections are determined on the basis of proportional representation, so no matter who wins, Austria will have a coalition government.

The most likely result, according to polls, is the continuation of a ‘red-black’ or ‘grand’ coalition between the two dominant parties in Austrian politics, the center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) and the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party).

Polls also showed the anti-EU, anti-immigration, right-wing Freiheitliche Partei Österreichs (FPÖ, the Freedom Party of Austria) gaining ground, but still in third place.

Though Austria’s chancellor Werner Faymann leads a consensus-driven government, he’s in some ways the opposite of German chancellor Angela Merkel, whose own center-right party won a huge victory just last weekend.  With an approach that’s leaned away from the austerity budgets of much of the rest of Europe, Faymann has boosted Austrian spending over the past five years on stimulative measures, including a massive commitment to job training.  That’s left Austria with the lowest unemployment rate among the 28 member states of the European Union.

Even if the SPÖ and the ÖVP win the largest and second-largest shares of the vote, they may still not win enough seats to form a majority because up to seven parties could win seats today.

Austria’s Die Grünen – Die Grüne Alternative (Green Party) will likely be the fourth-largest party in the National Council, but three smaller parties could also enter the parliament — the new eurosceptic Team Stronach, founded last year by Austrian-Canadian businessman Frank Stronach; the Bündnis Zukunft Österreich (BZÖ, Alliance for the Future of Austria), a liberal splinter group of the FPÖ; and Das Neue Österreich (NEOS, The New Austria), a new liberal party that formed last year as well.

Meet Austrian chancellor Werner Faymann, Europe’s Superman of Keynesian economics

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Austrians go to the polls on September 29, and just as with Germany’s election last weekend, voters seem inclined to reward a government that has largely kept Austria’s economy strong through a time of recession and unemployment throughout much of the rest of Europe.austria flag

But German chancellor Angela Merkel has steered a largely moderate, pragmatic course over the past eight years in Germany, and it’s arguable that Germany’s economic success owes much to its position as Europe’s largest economy and its role as a leading global high-tech manufacturer than to any Merkel-era economic policies — if anything, Merkel’s center-left predecessor Gerhard Schröder pushed through the policies (including the Hartz IV labor and welfare reforms) that steeled Germany for the economic storm of the late 2000s and early 2010s.

In Austria, however, it’s been an even more sanguine story.

The country has a 4.8% unemployment rate, according to Eurostat, the lowest among all 27 countries in the European Union.  Its GDP dropped just 3.8% in 2008 (a narrower drop than in Germany), and it returned to growth thereafter — even in 2012, it managed to record GDP growth of 0.8% while most of the eurozone was mired in recession.

So what has Austrian chancellor Werner Faymann and his government done over the past five years in order to steer Austria out of the straits of the eurozone morass?  As it turns out, a lot.

While several European countries have served as battlegrounds for harsh transatlantic battles among economists over economic policy (the usual suspects, but also places like Iceland, Latvia and Estonia), you would think that neo-Keynesian economists would be shouting from the rooftops about Austria’s economic stewardship.  Don’t confuse Austria’s economic policy today with Austrian economics, as such, which is something very much the opposite.

Since his election in September 2008, Faymann has led a grand coalition between his own center-left Sozialdemokratische Partei Österreichs (SPÖ, Social Democratic Party of Austria) and the center-right Österreichische Volkspartei (ÖVP, Austrian People’s Party), and it’s about as anti-austerity a government as Europe has seen.

Given the strength of the Austrian labor movement, Austria immediately pursued the kind of work-sharing policies that Germany also adopted in the aftermath of the crisis when aggregate demand tumbled — the idea that shorter working hours for everyone would be a way to disperse the slack in the economy, thereby avoiding the wave of layoffs that we saw in the United States.

But Faymann also pushed through job training legislation that massively empowered Austria’s Arbeitsmarktservice (AMS, Austrian Employment Service), including strong benefits for the unemployed and the guarantee of a paid training internship for young Austrians in the marketplace.  Austria’s labor market has performed exactly the opposite of that in the United States — unemployment rose in Austria because more workers were seeking jobs, while the US unemployment rate has dropped partly because so many American workers have given up on finding employment.

Faymann also allowed Austria’s public debt to rise from around 60% in 2008 to 75% today in order to finance the jobs legislation and other stimulative measures to shore up Austria’s economy.  His government also took the lead in convincing the European Union and the International Monetary Fund to provide up to €125 billion to stabilize banks in the Central European and South Eastern European (CESEE) region, a strategy that worked to reassure global investors.  A financial panic in CESEE region countries, such as Hungary, would have led to massive losses for Austrian banks as well.  The idea is that a credible commitment from government at the outset of a financial crisis will stave off a larger financial panic.  Contrast the far less proactive European response to the wider sovereign debt crisis — it was only in July 2012, the eurozone crisis’s third year, that European Central Bank president Mario Draghi said he would do ‘whatever it takes’ to save the euro.

Faymann is campaigning on a platform of instituting a wealth tax on millionaires and institutionalizing a levy on the assets of large banks, both of which Faymann hopes will keep income inequality relatively low in a society that already has one of the world’s lowest Gini coefficients.

With a record like that, why isn’t Paul Krugman cheerleading for Faymann from the op-ed pages of The New York Times?  Here’s a European leader who has pursued as close to a Krugmanite economic policy as anyone.

For one, you could easily argue that Austria’s just been lucky.   Continue reading Meet Austrian chancellor Werner Faymann, Europe’s Superman of Keynesian economics