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Elections expose flaw in mould
 "This is a country that is doing economically so well and could be so much at ease with itself. How did it get itself in such a mess?" So wondered a western diplomat a few days after last month's Austrian elections when an unexpectedly sharp rise in support for Jörg Haider's far-right Freedom party threw Austria into political and psychological turmoil. It is a view shared by many outsiders. Austria is the third richest of the 11 countries involved in Europe's single currency and its economy is growing faster than average. ...more
PERFORMANCE:
Pace of growth starts to pick up
The Austrian economy is picking up speed again after the sharp slowdown in the final months of 1998 caused by the knock-on effects of last year's Russian financial crisis on several of Austria's closest trading partners. The setback in the final quarter of last year did not prevent the Austrian economy growing by 3.3 per cent in 1998, a full one per cent faster than the European average. ...more
BANKING:
Confidence begins to return
Austria's big banks rank among the most undervalued in Europe. The combination of low margins, persistent overcapacity, a weakness in tackling costs, and an unhealthy appetite for Russian risk among some big players, have sapped international investor confidence. ...more
STOCK EXCHANGE:
The tide starts to turn for the Börse
The Vienna Börse is one of the oldest stock exchanges in Europe and one of the smallest. Only Iceland and Luxembourg have smaller stock exchanges and the rapid consolidation of Europe's capital markets has raised the question of whether the Vienna Börse has a long-term future. ...more
EASTERN ENLARGEMENT:
Role at centre of wider region
Many Austrian companies have taken the chance and expanded into neighbouring eastern countries. At the same time, many Austrians are preoccupied with negative aspects of the EU enlargement.Jörg Haider's success in Austria's recent elections sent shock waves across Europe. ...more
PRIVATSATION:
Parties split on sell-off strategy
But privatisation has recently stalled because the ruling Social Democrats fear that a total withdrawal of the state would leave the big corporate flagships vulnerable to hostile takeovers from abroad, which could result in job losses at home. ...more
WINE:
Red and white revolution
Scandals occasionally shake the normally placid wine trade. One scandal emerged in Bordeaux when it was discovered that shippers had resorted to the traditional practice of blending their wine with stronger stuff from elsewhere. ...more
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