On July 7, 2008, the Austrian government collapsed after months of struggling between the two major political parties, the Social Democratic Party and the People's Party. Elections are expected to be held in September.

The chancellor, Alfred Gusenbauer, announced that he would not run for reelection. The new Social Democratic Party leader and transport minister, Werner Faymann, will be the Social Democrat candidate.

In Sept. 2002, the coalition between the People's Party and the Freedom Party dissolved after a shake-up in the Freedom Party, instigated by Haider. In Nov. 2002, the People's Party made large gains in general elections.

After failed coalition talks with other parties, the People's Party again formed a government with the Freedom Party in Feb. 2003. A government plan to overhaul the country's pension program led to widespread strikes in May and June 2003—the first national strikes in decades.

Geography

Slightly smaller than Maine, Austria includes much of the mountainous territory of the eastern Alps (about 75% of the area). The country contains many snowfields, glaciers, and snowcapped peaks, the highest being the Grossglockner (12,530 ft; 3,819 m). The Danube is the principal river. Forests and woodlands cover about 40% of the land.

After World War II, the United States and Britain declared the Austrians a “liberated” people, but the Russians prolonged the occupation. Finally Austria concluded a state treaty with the USSR and the other occupying powers and regained its independence on May 15, 1955. The second Austrian republic, established Dec. 19, 1945, on the basis of the 1920 constitution (amended in 1929), was declared by the federal parliament to be permanently neutral.