In the first half of 2006 Austria has held the EU Presidency for the second time in its history. On 26 June 2006 the Austrian federal government presented its conclusions in Vienna. Federal Chancellor Wolfgang Schüssel summed up that one year ago the Union had been in deep water and that the Austrian EU Council Presidency had been confronted with “a whole series of unpredictable crises”. Schüssel reminded of the negative referendums on the EU Constitution in France and the Netherlands and the failed budget negotiations in 2005. Currently, the main concern was to take concrete steps to boost confidence and create a discernible value-added for the citizens of the Union.
The Austrian EU Presidency was overshadowed by the gas crisis with Russia, the election of the radical Islamic Palestinian organisation Hamas, the cartoon conflict, the bird flu, the events in the Middle East, the nuclear conflict with Iran as well as the debate about the controversial US prison camp Guantánamo. “We had to contract all muscles to steer the ship. I think we have stayed the course and that today Europe is in a significantly better state than one year ago“, Schüssel summarised the “EU crisis management“. The Austrian concept of atmospheric renewal had been successful.
The key aspect of the Presidency’s work had been cooperation on an equal footing with all EU Member States, the candidate countries and the EU institutions, and thereby guaranteeing transparency and efficiency. “We have to think in terms of integration and act in a European way”, stressed Schüssel in this context.
Besides coping with the aforementioned crises, major achievements of the EU Presidency mentioned by the Federal Chancellor were the EU budget compromise, the consensus on the Services Directive, the value-added tax agreement, the Eurovignette Directive and starting work on the pilot tube of the Brenner base tunnel. The Cyprus conflict had also been mitigated. As far as enlargement was concerned, separate accession procedures were adopted for Croatia and Turkey. Austria’s commitment to a common EU foreign policy also made a substantial contribution.
The Austrian Presidency had advocated subsidiarity in response to appeals to bring the Union closer to the citizens and concerns about centralism and excessive red tape, pinpointed the Chancellor. Other highlights were concrete steps taken to promote growth and employment, e.g. increased research expenditure, subsidies to small and mid-sized enterprises and measures to safeguard jobs, especially for the young. ■

At a special Council of Ministers on 5 July 2006 the federal government adopted a new Topography Decree for the planned 141 bilingual topographic signposts in Carinthia. By taking into account various deadlines, all signposts indicating the name of settlements would be erected by the end of 2009, stated Chancellor Schüssel.
As Schüssel informed, the new Topography Decree took retroactive effect as at 30 June 2006. The basis of this document is the so-called “15/10% rule” for settlements with more than 10% Slovenes located in a municipality with a share of 15% of Slovenes in the population. No transition periods were fixed for 93 signposts whose erection had been agreed on in late June. They had to be put up immediately after adoption of the resolution by Parliament, informed Schüssel. 77 of these signposts had been put up, 16 would follow soon. For the remaining 48 signposts a concrete plan had been developed, which would be realised in stages by 2009. After that the Austrian Minorities Act, including an “opening clause”, would govern bilingual signposts. The Act would be incorporated in the Constitution. The “opening clause” permitted the erection of additional bilingual signposts after 2010 if requested by 10% of a bilingual minority, said Schüssel. ■

A global payment of BAWAG to settle the claims of creditors of the insolvent US broker Refco has been approved on 30 June 2006 by the competent judge in bankruptcy in New York. Thus the bank has avoided several-billion-dollar claim risks and paved the way for its sale. ■

On 29 June 2006, Foreign Minister Ursula Plassnik representing the outgoing EU Council Presidency participated in the meeting of foreign ministers of the Group of Eight (G-8) states in Moscow. Basically, the aim of this meeting was to prepare the G-8 summit in St. Petersburg on 12 July 2006. The deliberations focused on Iran’s nuclear programme and the common combat against terrorism. Other subjects discussed were the escalating Middle East conflict, Africa, Afghanistan, North Korea and Russia’s border regions.
Against the background of a new wave of violence between Israelis and Palestinians, the G-8 foreign ministers pled for equanimity and returning to the negotiating table. Plassnik stated on behalf of the EU: “The killing of the Israeli settler in the West Bank has to be condemned harshly. Violence can never be the solution. At the same time we also appeal to Israel to show utmost restraint in this difficult situation. This is a question of adequacy“, said Plassnik.
The Austrian Foreign Minister requested the speedy release of the abducted Israeli soldier in the Gaza Strip. She also lodged an urgent appeal to Israel to release the captured democratically elected members of the Palestinian Legislative Council provided that there were no concrete charges against them.
Another issue discussed was the Iranian nuclear programme. The G-8 debate had endorsed the extensive international support for the bargaining offer submitted in Teheran by EU High Representative for Common Foreign and Security Policy Javier Solana. It was regrettable that Iran had not yet reacted positively, stressed Plassnik. She reminded of the fact that with the “Vienna Initiative” the international community had demonstrated its willingness to engage in constructive cooperation with Iran. ■

Her first official trip abroad took Hungary’s new Foreign Minister Kinga Göncz to Vienna on 4 July 2006. The working meeting with Austrian Foreign Minister Ursula Plassnik concentrated on EU topics, e.g. the future of the European Constitution, EU enlargement, the situation in the Western Balkans and the European neighbourhood policy. In addition, bilateral and regional issues were discussed. Plassnik described the fact that her new Hungarian counterpart paid her first official visit to Austria as a sign of “a very close friendship” between the two countries. “What we share as neighbours is not only expressed in concrete work but also in organisational matters”, said Plassnik. She pointed out that the representation of Hungary and Austria operated jointly in Podgorica (Montenegro) would soon be converted into fully operational embassies.
Plassnik also reminded of the Hungarian revolution against Communism 50 years ago. This historical event had established special ties between Austria and Hungary. “In 1956 Austria received about 200,000 Hungarians. They have become part of our modern identity”, said Plassnik.
Austria took over the chair of the Regional Partnership from Hungary on 1 July 2006. Austria would make an all-out effort to continue the “Budapest process providing concrete support to the neighbouring region in South Eastern Europe”, emphasised Plassnik.
Hungarian Prime Minister Ferenc Gyurczány will pay an official visit to Austria on 11 July 2006. ■

Flood protection is becoming an issue addressed by the European Union. In Luxembourg on 27 June 2006 the EU environment ministers adopted a programme consisting in several stages to jointly combat flood disasters – a problem of increasingly serious dimensions in Europe. Minister for the Environment Josef Pröll referred to an “important instrument of common planning and a strategy to protect people from floods”. The coordinated flood protection programme will prevent for example massive river regulations with adverse cross-border consequences. The EU Member States have to identify areas with flood risks in river basins and coastal areas by 2012 and record them in detailed maps until 2013. By 2015 the “joint development” of flood risk plans will be completed. ■

Austria’s economy is doing very fine. This is the basic message of the “Economic Report 2006” presented at a festive event at the Austrian Academy of Sciences in Vienna on 3 July 2006 by Federal Chancellor Wolfgang Schüssel, Vice-Chancellor Hubert Gorbach, Minister for Economic Affairs Martin Bartenstein and Minister of Finance Karl-Heinz Grasser. In his introductory statement Schüssel highlighted the success record of the federal government’s economic policy and appealed to follow this positive course in the future. “We have to under-stand that the growing integration in Europe and exciting dynamism of the internationalisation of our economy offer us new opportunities and that we must continue where we started so ambitiously in 2000“, said the Chancellor.
Among the most important economic measures mentioned by Schüssel were the strengthening of Austria as a business location, an annual reduction of the tax burden on companies, in particular small and medium-sized enterprises, by more than 1.3 billion euro, better job opportunities, promotion of knowledge and innovation (R&D ratio in 2006: 2.43%) as well as campaigns promoting an efficient and sustainable energy policy.
The figures speak for themselves: the domestic per-capita income (in terms of purchasing power) is about 23% above the EU average. Together with the Netherlands, Austria is the fourth richest country of the EU and ranks seventh in a global comparison. In the EU ranking of per-capita income the places three to one are taken by Denmark, Ireland and Luxembourg, by far the richest EU member.
In terms of attractiveness as a business location, Austria improved its position by four grades compared to last year (now 13th). According to the Centre for European Reform (CER) in London, Austria is number three (behind Denmark and Sweden) in an assessment of the progress made in reaching the goals of the EU’s Lisbon strategy (to make Europe the most competitive economic area).
Based on the recent medium-term forecast of the Economic Research Institute (Wifo), the Austrian economy will grow by 2.1% on annual average by 2010 – and thus more significantly than the euro-zone. Minister Bartenstein highlighted, however, that the figure printed in the report was surpassed in new growth forecasts for 2006. On 30 June 2006 growth estimates increased to between 2.5% (Institute for Advanced Studies) and 2.6% (Wifo).
Bartenstein expects a trend reversal on the labour market. The annual average number of jobless will decrease in 2006 for the first time since 2000. A new record employment rate is likely to be registered. The number of employed will total about 3.3 million based on preliminary estimates. Hence, the federal government’s qualification programme had been successful, underlined Bartenstein. ■

The Economic Chamber Austria (WKÖ) celebrated its 60th anniversary by hosting a reception on 28 June 2006. The festive speeches given by Federal President Heinz Fischer, Federal Chancellor Wolfgang Schüssel and WKÖ President Chris¬toph Leitl focused on the contributions made to the Second Republic by social partnership in general and the representation of entrepreneurs in particular.
Schüssel described the social partnership as an “advantage for Austria as a business location of which many envy us” and which should be safeguarded in the future. The Chancellor stressed the need for interest representations of employers, workers and farmers without party affiliations. The example of the red-white-red social partnership could serve as a model for Europe in the long term, said Schüssel.
The Chancellor spotlighted the increasing number of companies and booming exports in Austria. This year exports would grow by 9% and the magical 100-billion-euro-threshold could be reached. WKÖ had contributed greatly to this “incredible success story”, said Schüssel. ■

More than 31 billion euro is the total brand value of Austria’s ten strongest brands: Red Bull, Swarowski, Spar Österreich, ÖBB, Casinos Austria, Österreichische Lotterien, Mobilkom, betandwin.com, Austrian Airlines, Novomatic. ■

According to a study commissioned by the European Commission comparing basic e-government services, Austria is Europe’s number one in this field. Two new EU Member States – Malta and Estonia – rank second and third. Since 2002 Austria has managed to catch up steadily, advancing from place eleven to the top position and making Austria the European champion.
14,000 official websites were examined. The online services of the administration in 28 European states – 25 EU Member States, Iceland, Norway and Switzerland – were compared. “This is a great success of the E-Government Initiative of the Austrian federal government and of all players involved. The intensive joint work of the Federal Republic, the Länder, the cities, municipalities and the economy in the Digital Platform Austria set up within the Federal Chancellery has made it possible to achieve this top result. Austria has pursued a clear strategy of further developing and making accessible electronic services all over Austria”, Secretary of State for Art and Media Franz Morak was pleased to state.
A total of 20 public services was tested and compared: twelve online services for citizens, eight for enterprises, e.g. tax returns, business registration, document requests or job search.
The study assessed the comprehensiveness of the electronic offer. Most points were scored when all transactions – application, decision, notifica-tion, payment – could be handled electronically.
Austria achieved outstanding results with regard to the speedy processing of transactions concerning taxes and charges. FinanzOnline makes it possible to file and follow up tax returns anytime and everywhere electronically. The same applies to requests for environment certificates (e.g. emission approvals), which can also be handled exclusively through the Internet. However, Austria needs to catch up in the area of electronic building permits and car registrations.
Austria’s best practice examples, such as help.gv.at, FinanzOnline, ELAK, have received several international awards and provide an excellent basis for the further development of an efficient electronic administration. Moreover, Austria’s best practice examples are also contributing to the standardisation and modernisation of electronic services within Europe. “By launching i2010, the European Commission has created a central programme to speed up the further development of the information society in Europe to the benefit of the citizens. Coherence, concentration and networking are the key elements of i2010 – and this is also true for Austria. In this field we will continue to take targeted measures so as to take full advantage of the opportunities of digitalisation. The developments in the recent years have clearly shown Austria’s enormous potential. Last but not least, this is reflected in the top position we achieved in the e-government ranking“, said Morak.
The polling institute Fessel GfK has recently published a survey about the attractiveness of e-government services, whose results show a significant increase in the use of online services. More than 70% of those polled pass a favourable opinion on e-government. 45% have processed requests to public authorities fully electronically. Compared to a survey conducted two years ago, this is an increase by 137%. 80% of the Austrian Internet users dealing with official business prefer going online to going to the authorities. 60% would like to receive official decisions electronically instead of having them delivered by mail. ■

In accordance with the mandate of the Film Promotion Act 2005, the Austrian Film Institute presented its first Film Industry Report 2006 covering data from 1998 to 2004. The report for the period 2005 will become available in early 2007. At the presentation on 5 July 2006, Secretary of State for Art and Media Franz Morak described the report as a “quantum leap with regard to the work of the domestic film industry and acceptance by the audience“.
About 64% of the Austrian film production consist in TV films, 10% are cinema films. The remaining spectrum spans from advertising to educational films. In 560 auditoriums, whose number has changed only insignificantly since 2001, almost 20 million visitors were registered in 2004. This corresponds to a plus by 1.7% from the level of 2003. Sales totalled 113.3 million euro (previously 108 million euro).
From a commercial perspective, Austrian film production played only a minor role internationally but its overall significance should not be underestimated, stressed Morak and Roland Teichmann, Director of the Austrian Film Institute. Top films like the film version of Elfriede Jelinek’s novel “Die Klavierspielerin” (“The Piano Teacher”) directed by Michael Haneke reached an audience of about 2.73 million people in Europe and the USA in 2001. The Austrian film had a market share of 17% in the total volume of European films. Teichmann emphasised that an attempt would be made “to attach greater priority to commercial exploitation in subsidy schemes“ and to make more commercial films eligible for financial aid. The comparably low market share had different reasons such as the structural disadvantage of small countries on the fringes of a large language area, from which also Belgium and Switzerland suffered, or the structure of the domestic film-distributing industry. Moreover, US productions spent half of their budgets on marketing, which should be given greater importance in Austrian subsidy schemes. In view of a 90% dependence of the film industry from commissioned productions, Secretary of State for Art and Media Morak plans to strengthen the position of independent producers. “We have to maintain a high quality level and succeed internationally”, he defined the goal. ■

The aim of the newly introduced “Prize for Regional Cultural Innovation” is to support “the creativity to interpret the region individually”. The award will be granted annually in all Länder, with the exception of Vienna, which has a purely urban art and culture scene. The eight prize winners were presented by Secretary of State for Art and Media Morak and Fritz Grillitsch, the President of the Farmers’ Federation and head of Forum Land, on 3 July 2006. As Morak explained, in the past ten years the spotlight has increasingly turned on festivals. For this reason art and culture by and for the rural population should be supported. The new prize was, however, not an award for “yodelling and folk dancing”. By promoting rural cultural work, Grillitsch wants to make “living in the countryside more attractive and strengthen centres of social life“. The prize-winning projects were identified in a concerted effort of eight jurors familiar with the regions as well as regional representatives of Forum Land. Selection was based on criteria like the conveyance of practised cultural expression, the revival and redefinition of authentic cultures as well as endeavours to attract new audiences.
The working group “Culture in the villages”, which has supported local culture in several communities since 2001, will receive the prize in Lower Austria. After launching a holiday campaign in rural libraries, the number of items on loan increased by 60%. In Upper Austria “The Glass Valley” enthused the members of the jury. The project informing visitors about glass and the former glass factory consisted in designing a route from the centre of the community Weißkirchen in Attergau to Freudental with several themes addressing children and adults. In Salzburg “Lungauer Kulturvereinigung“ has won. The project from Achenkirchen “young-village.com“ has been selected in Tyrol. The cultural association “Bahnhof Andelsbuch“ receives the prize in Vorarlberg. In Carinthia the winner is “Kulturfenster Greifenburg“. “Grenzenlos – Musik kennt keine Grenzen“ (“Beyond borders – music knows no borders”) is the title of the exemplary project in Styria. In Burgenland the prize goes to the music group “Die Buchgrabler“ upholding the tradition of popular rural music. With this initiative, Grillitsch hopes “to arouse new desires in people in the age of globalisation”. The award ceremonies will take place in the Länder in September. ■

The “World Scientist Forum” granted the title “Eminent Scientist of the Year 2006” to biophysicist Ruth Prassl from Graz. She is heading the lipoprotein group at the Institute of Biophysics and Nanosystem Research (IBN) of the Austrian Academy of Sciences. Her research activities focus on the structural analysis of lipoproteins, which play a decisive role in the development of atherosclerosis (hardening of the arteries).
The biophysicist born in Klagenfurt in 1959 has
been working at the IBN since 1987. The Institute dedicates itself to investigating physical interrelations within living cells. It is a globally recognised centre of excellence in this field. Since 1999 Prassl has also been teaching at Graz University. The award is granted for outstanding medical research activities by the “International Research Promotion Council“ founded in Great Britain in 1993. ■

“Art Brut from Gugging is art – created by outsiders, loners”, stressed Secretary of State for Art Franz Morak in his speech before opening the new, internationally unique “Museum Gugging – Art Brut Center“ on 28 June 2006 in the presence of the nine masters living in the “House of Artists”. Psychiatrist Leo Navratil had “discovered” art from Gugging in the 1960s. In 1965 he published “Kunst und Schizophrenie“ (“Art and Schizophrenia”), the first great exhibition followed in 1970. The foundation had been laid by establishing the centre for art psychotherapy, and the opening of the museum was a milestone, said psychiatrist and sculptor Johann Freilacher, who has headed the institution for 20 years. He defined Art Brut as “original art free from influences, reflecting a highly personal and non-adjusted form of artistic expression“. The Art Brut Center should not only be used for presenting art but become a “living museum”, a place of communication and discussion about art. Lower Austria’s Governor Erwin Pröll stated, the new museum and the planned elite university on the Gugging estate would establish harmo-nious ties between culture and science, embedded into the nature of the “Vienna Woods” biosphere park.
The psychiatric institution Gugging is closed down. The artists, who were already separated from the patients some years ago, remain – as artists and not as patients. “blug“ is the title of the first museum exhibition, which shows about 400 works of art by legends such as Johann Hauser, August Walla to artists currently living in the “House of Artists” – Johann Fischer, Johann Garber, Franz Kernbeis, Johann Korec, Heinrich Reisenbauer, Arnold Schmidt, Günther Schützenhofer, Johann Tschirtner (now 86) and Karl Vondal. Art from Gugging reaches market prices of up to 25,000 euro. ■

Kathrin Passig (aged 36), living in Berlin, was awarded the Ingeborg Bachmann Prize 2006 for her story “Sie befinden sich hier“ (“You are here”). This was announced in Klagenfurt on 25 June 2006 by the jury of the reading competition headed by German literary critic Iris Radisch. The first prize of the 30th round of the “Days of German-language literature” is offered by Carinthia’s capital Klagenfurt.
The prize has been granted since 1977 to commemorate the writer born in Klagenfurt in 1926. A total of 18 authors presented un-published texts at this year’s reading. The Bachmann Prize is one of the most important literary awards in the German-speaking area. ■

The BAWAG FOUN¬DATION in Vienna presents an exhibition on slapstick and other funny art that deals with falling, stumbling, drowning or other ways of losing one’s status. It is titled “Nothing But Pleasure“ and ends on 26 August 2006. The summer exhibition explores the theme based on exemplary works by 22 internationally renowned artists, who are represented both with recent works and classics. “Nothing But Pleasure“ has, however, been conceived as a humorous commentary on the current situation, which – just like any other unanswerable state – can be responded to by crying or laughing. On show are inter alia works by John Bock, Gelitin and Heimo Zobernig. A highlight is Buster Keaton’s silent film “One Week“ (1921), in which the comedian tries to build a house but everything goes wrong. ■

The exhibition “Uneasiness on Film” presented at Atelier Augarten (Vienna) is dedicated to the Viennese Kurt Kren (1929-1998), one of the most important representatives of international avant-garde film production. Besides nine films (1957 to 1968), it shows studies, sketches and photos by the son of Jewish parents, who survived WWII. in the Netherlands. ■

At the joint press conference of Peter Westenthaler, Chairman of BZÖ (Alliance for the Future of Austria) and Secretary of State for Sport Karl Schweitzer, EURO 2008 was the top item on the agenda – only one day after the World Cup final.
698 days before the beginning of the European Football Championship, BZÖ chief Westenthaler emphasised that the EURO 2008 was a project of vital national interest equally relevant for sport, politics and the economy. “After this World Championship the standard is high. We should now turn the spotlight on the European Football Championship and intensify preparations.“ Westenthaler identified deficits in the federal league, that should support more domestic football players and give greater priority to the national team.
Secretary of State for Sport Karl Schweitzer reported on the EURO 2008 activities of the federal government: “We are making good progress.“ The rebuilding of stadiums is progressing according to plan, the stadium agreements were signed with UEFA already in 2004. The stadiums are fully financed (about 100 million euro) by the public sector. The Austrian Football Federation (ÖFB) was, however, responsible for searching national sponsors.
An important aspect of the federal government’s role is the sustainability concept, which has been presented to the Austrian Parliament in a motion for resolution. This concept should be taken into account in efforts to ensure long-term benefits for the economy, environment and transport. It is also expected to provide social and cultural stimuli.
The EURO Charter – a formal commitment of the Federal Government and the host communities to sustainability – has been prepared and will be signed by all parties in the next weeks. In addition, two coordination bodies have been established: the steering group for strategic and political decisions and the EURO 2008 project group responsible for operational coordination.
Not only organisational efficiency but athletic achievements will be decisive for the overall success of the European Football Championship. The national team will be crucial for Austrian football – it has to be strengthened and become the number-one priority. “Our preparations are progressing according to plan. But there is still a lot to do“, concluded the Secretary of State. ■

Jacques Rogge, President of the International Olympic Committee (IOC), paid a visit to Vienna on 28 June 2006 in the context of Austria’s outgoing EU Presidency.
In talks with Chancellor Wolfgang Schüssel and Secretary of State for Sport Karl Schweit¬zer the IOC President stressed the importance of the new Sports Act and the new anti-doping guidelines. He also welcomed the fact that speedy action had been taken. This had not only been a very positive approach with regard to Salzburg’s application for hosting the Olympic Games but an important signal for sport in general. The Belgian also called on Federal Chancellor Schüssel to advocate that sport should remain anchored in the EU legislation. ■

Based on recently published findings of a telephone poll of Infoscreen Monitor, 78 % of the Austrians expect an economic upswing from the European Football Championship to be held in Austria and Switzerland in 2008. 57% of the population had not yet any opinion on the fact that Austria will be the venue of the most important football event in Europe in 2008. But almost one third of the Austrians were pleased that their country would be the focus of attention of football fans all over the world.