Federalism in Austria is characterized by a constant struggle between centralist and federalist currents. Already at the founding of the Republic of Austria in the years 1918 to 1920, the states played a decisive role in the development of the political and administrative structures at the state level. In the so-called state conferences, in which representatives of the states and the new central government met in Vienna, it was agreed to constitute the republic as a federal state.
The Austrian Federal Constitution, finally adopted in 1920 and largely drafted by legal scholar Hans Kelsen, envisaged a federal state with nine member states. The resulting federalism was weak, as most important powers, especially in financial matters, were assigned to the federal government. This distribution of powers reflected the different ideas of the two dominant political forces: the Christian Social Party, who supported federalism, and the Social Democratic Party of Austria, who preferred a centralized state. The constitution was largely provisional and incomplete, and it was not until the constitutional reform of 1925 under Chancellor Rudolf Ramek that the distribution of powers was finally regulated.
The constitution of the authoritarian corporate state of 1934 brought a further push towards centralization. All state laws required the approval of the Federal Chancellor, and the state governor was appointed by the Federal President. With the annexation of Austria to Germany in 1938, federalism in Austria was completely abolished. After the Second World War, the 1929 constitution was reinstated. In the decades that followed, the states campaigned for a strengthening of their position within the federal state, and the demands of the states gradually led to an expansion of their powers.
Austria's efforts to join the European Union were supported by the state governors from the outset, and their commitment played a key role in ensuring that two-thirds of the Austrian population voted in favour of joining the EU in a referendum in 1994. In return for their support, the states were promised comprehensive federal reform in the so-called Perchtoldsdorf Agreement of 1992, which has, however, not been implemented by any of the subsequent federal governments to date. The results of the 2005 Austrian Convention, which dealt with a reform of federalism, have also not been put into practice.
Development of Austrian Federalism
Foundation of the Republic (1918–1920)
The founding of the Republic of Austria after the First World War was closely linked to the question of the future state structure. In the period from 1918 to 1920, the political landscape was shaped by the debate between centralism and federalism. After the defeat of Austria-Hungary in the First World War, the monarchy collapsed and numerous new states emerged, including a much smaller Austria. On November 12, 1918, the provisional National Assembly proclaimed the Republic of Austria.
Initially, the idea of a federal system was not a priority. The desire for annexation to Germany, which was favored by many, especially the Social Democrats, spoke in favor of establishing a centralized unitary state. However, the former crown lands of the Habsburg Monarchy, which had a certain federalist tradition, soon began to pursue their own interests. Some of these states, such as Vorarlberg, Tyrol, Salzburg, Carinthia, Styria, Upper Austria and Lower Austria, had their own state systems. The Christian Social Party, which has strong representation in the states, advocated for a federal system, while the Social Democrats who were dominant in Vienna supported a centralized state.
In May 1919, a conference was held in Salzburg at which the representatives of the states emphasized the federal plans of the Christian Socials over the centralist ideas of the Social Democrats. Austrian federalism ultimately emerged from a compromise between these two forces. The Federal Constitution, which came into force on 1 October 1920, envisaged a centralised federal state. Despite the compromise character of the constitution, it was already clear in the founding phase that the states would play an important role in the Austrian federal state. In the so-called Länder Conferences of 1919, in which representatives of the states and the new central government met in Vienna, it was agreed that the republic should be built up as a federal state. The strong involvement of the states in the founding of the state is still emphasized in Austrian politics today.
The Federal Constitution of 1920, which was largely drafted by Hans Kelsen, was based on central structural principles laid down in Articles 1 and 2 of the Federal Constitution Act. In addition to the democratic and republican principle and the principle of the rule of law, this also includes the federal principle. This principle involves the division of state functions and tasks between the federal government and the states. Both the federal government and the states have the right to enact laws and ensure their enforcement within their respective areas of responsibility. The founding phase of Austrian federalism was thus a time of negotiation and compromise. The tensions between the desire for unity and the pursuit of regional autonomy shaped the political debates and led to a constitution that still forms the basis for the Austrian state today.
First Republic, Austrofascism and World War II (1920–1945) Austrian federalism in the First Republic (1920–1934) was characterized by a complex dynamic between centralist tendencies and the states' striving for autonomy. The Federal Constitution of 1920 created the basis for a federal state, which, however, had a strong centralist orientation from the outset. Although the constitution provided for a distribution of powers between the federal government and the states, most important areas were within the legislative competence of the federal government. In financial matters in particular, the federal government had the upper hand, which limited the states' scope for action.
The states' participation in federal legislation was only weakly pronounced through the Federal Council, the second chamber of parliament. The Federal Council had a right of veto, but could be outvoted by the National Council, the first chamber.
This asymmetry in the distribution of power meant that in practice the Federal Council played a rather subordinate role and the National Council dominated legislation. Despite the centralist orientation of Austrian federalism, the states played an important role in the political system of the First Republic. They had their own constitutions, parliaments and governments and were responsible for the administration of important areas such as education, security and health care. The states also had a certain degree of financial autonomy, which allowed them to set their own political priorities. The state governors, who had significant weight in federal politics as representatives of the states, used their position to develop political strategies and influence federal policy at regular state conferences. In these conferences, which were attended by representatives of both the state governments and the federal government, they were able to articulate their interests and work out common solutions.
In addition to the formal institutional regulations, Austrian federalism in the First Republic was also characterized by informal practices and political compromises. The close cooperation between the federal government and the states in administration led to an interweaving of the two levels, which resulted in a form of executive federalism. Many tasks were carried out by the states on behalf of the federal government, which strengthened the position of the federal government, but at the same time also gave the states a certain degree of creative power in the practical implementation of federal laws.
The period of Austrofascism between 1934 and 1938 was marked by a dramatic change in the nature of Austrian federalism. After the February Uprising of 1934, Chancellor Engelbert Dollfuß established the Federal State of Austria, an authoritarian, clerical regime. Although this regime maintained federalist structures, it actively pursued centralizing policies. A major change was the need for the approval of the Federal Chancellor for all state laws. This reduced the legislative autonomy of the states and strengthened the authority of the federal government. In addition, the Federal President was given the power to appoint the state governor, which led to a further concentration of power at the federal level. This effectively transformed the state governors from representatives of their respective states into executive agents of the central government. These changes, although implemented without much political opposition, undermined the federal structure of the constitution.
The centralization process could also be observed in the education system. Before 1934, the states enjoyed considerable autonomy in educational matters. However, the authoritarian regime of the corporate state strove to standardize the school system in order to promote national unity. The Concordat between the Holy See and the Republic of Austria shifted control of education from the states to the federal government. This move was supported by representatives of the states in the Federal Council, which illustrated the prevailing mindset of prioritizing national unity over state autonomy. This effectively reduced the cultural and educational diversity previously promoted by the federal system. Until 1938, Austria was only formally a federal state, but in practice it functioned like a unitary state.
However, this chapter of Austrian federalism came to an abrupt end with the annexation of Austria to Nazi Germany in 1938. The Nazis reorganized the Austrian states, redrawn borders and merged some federal states, reducing the number of administrative regions to seven Reichsgaue. This eliminated any trace of Austria's previously existing federal structure and integrated the country into Nazi Germany's highly centralized administrative system.
Second Republic (from 1945) After World War II, the Austrian Constitution of 1920, which had been suspended during the Nazi era, was reinstated. A long period of stagnation followed, during which the states mainly replicated federal constitutional law and acted remarkably passively until the late 1960s. This led to Austria's federal system being described as highly centralised, with the federal government playing a dominant role and the states exercising their legislative powers in limited areas.
A turning point was the constitutional amendment of 1974, which led to major changes in state politics and a gradual increase in the powers of the states, strengthening their self-confidence. The states began to actively adapt their constitutions, especially with regard to the rules for forming a government and direct democracy. The western states in particular used the new doctrine of "relative autonomy" to strengthen their regional identity and demand a more pronounced role in federal politics..
The Conference of State Governors, a coordinating body of the states that has met regularly since 1970, played a crucial role in promoting federal reforms. The conference's requirement for unanimous decisions ensured that each state had a strong voice. However, the true strength of the state governors lies in their dual role as top politicians of their respective state parties. This political influence was reflected in their strong support for Austria's accession to the EU. Their commitment was instrumental in securing a two-thirds majority in the 1994 EU accession referendum.