Last updated in September 2009
Austria’s relations with Germany are close and friendly. There are close ties between the two countries in all areas. History, culture, being neighbours, sharing the same language and both being members of the EU – all these things have resulted in innumerable ties and common interests. Nearly 138,000 Germans are registered in Austria as their main place of residence, and just under 84,000 with Austria as their secondary residence. Conversely, there are 189,000 Austrians living in Germany. Every year, over 10 million German tourists visit Austria, accounting for more than 40 per cent of all overnight stays by foreigners.
Political relations
As neighbours, Germany and Austria cultivate close bilateral relations based on mutual trust, also in their cooperation within the EU. This mutual understanding is also reflected in the high-level political contacts and meetings of parliamentarians. Because of the many similar political and social challenges they face, developments in the neighbouring country receive close attention.
Economic relations
In 2008, Germany remained Austria’s most important economic partner by far, with bilateral trade worth EUR 82.9 billion, compared with EUR 82 billion in 2007 (imports to Austria: EUR 48.1 billion, an increase of 1.5 per cent; exports from Austria: EUR 34.8 billion, an increase of 1.2 per cent compared with the previous year). Italy followed in second place with trade worth EUR 18 billion. In 2008, 32 per cent of all Austria’s exports went to Germany (as much as to all six next-ranking export destinations together), while Germany accounted for approximately 40 per cent of Austria’s total imports. In the first half of 2009, German exports to Austria fell by 13.4 per cent compared with the same period in the previous year. German imports from Austria also declined on a similar scale (-14.7 per cent). On the positive side, the decline in bilateral trade was much smaller than with the other EU countries and other trading partners across the world. In terms of exports, the difference is more than 10 per cent. Accordingly, Austria’s share of German imports and exports is also increasing (in 2008, from 8.3 to 9.5 per cent (exports) and from 7.0 to 7.3 per cent (imports) of total exports to and imports from EU member states).
For years, Austria has recorded a balance of trade deficit with Germany. Germany was also Austria’s main trading partner in services (accounting for 31 per cent of both imports and exports). In 2008, tourism remained for Austria the most important item in bilateral trade in services. German tourists made up the largest group of visitors (arrivals: 10.2 million; overnight stays: 50 million), thus accounting for 40 per cent of all foreign overnight stays in Austria. In December 2008, there were 75,718 German citizens working in Austria, mostly in the tourist industry.
At the end of 2007, foreign direct investments in Austria totalled EUR 108 billion (see table), EUR 27.2 billion coming from Germany (compared with EUR 24.2 billion in 2006), followed by Italy with EUR 23.3 billion (compared with EUR 19.2 billion in 2006). German investments in Austria secured 109,500 jobs. Austria’s total foreign direct investments were worth EUR 103 billion, Germany accounting for EUR 14.7 billion (14.4 per cent of Austria’s total direct investments), followed by the Czech Republic with EUR 7.6 billion. Austrian investments have created 49,600 jobs in Germany.
Cultural relations
German-Austrian cultural and academic exchange is more intense and wide-ranging than with any other country. Numerous German conductors, orchestras, musicians, singers, directors, artistic directors and actors often work in Austria and vice versa. The same applies to guest professors and lecturers. Vacancies for positions are often advertised across the border. Hardly a day goes by without German television showing a German-Austrian co-production. The success of German-Austrian cooperation is also evident in the film sector. The best examples here are “Die Fälscher” (The Counterfeiters) and “Das weiße Band” (The White Ribbon).
According to official figures, 15,295 regular German students were enrolled in Austria in the 2008 winter semester (out of a total of 223,562 regular foreign students), 944 of them at the country’s famous music and art academies. In the winter semester 2008, there were a total of 7,014 Austrians studying at German universities and universities of applied sciences. Examination and degree certificates are mutually recognized (German-Austrian Agreement on the Recognition of Equivalencies in Higher Education of 13 June 2002, Agreement on Equivalencies in Vocational Training of 1990, EU recognition directives).
Owing to the common language, the publishing markets in the two countries are very closely interconnected. Many Austrian writers are published by German publishing houses. The Austrian-German Cultural, the Vienna Goethe Society, the oldest anywhere, the Hebbel Society and the Beethoven Society cooperate with the German Embassy in Vienna in the cultural sector. There is no Goethe Institute in Austria.
The two countries’ media markets are closely linked: German publishing houses hold shares in Austrian media companies, there are co-productions in radio, television and film and there is cooperation through the TV channels 3sat and Arte. Owing to extensive media coverage of the partner country, there is much common ground in public political, economic, cultural and social debate and issues overlap.
