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The Austrian president convenes and concludes parliamentary sessions and under certain conditions can dissolve Parliament. However, no Austrian president has dissolved Parliament in the Second Republic. The custom is for Parliament to call for new elections if needed. The president requests a party leader, usually the leader of the strongest party, to form a government. Upon the recommendation of the Federal Chancellor, the president also appoints cabinet ministers. No one can become a member of the government without the approval of the president.
The Austrian parliament is composed of two houses - the National Council (Nationalrat), and the Federal Council (Bundesrat). Legislative authority is concentrated in the National Council. Its 183 members are elected for a maximum 4-year term in a three-tiered system, based on proportional representation. The National Council may dissolve itself by a simple majority vote or it may be dissolved by the president on the recommendation of the Chancellor. The 64 members of the Federal Council are elected by the legislatures of the nine provinces for 4- to 6-year terms. The Federal Council in most cases has only the right to review legislation passed by the National Council (it can only delay but not veto its enactment). Nevertheless, in some cases its veto is absolute.
A third parliamentary body is the Federal Assembly (Bundesversammlung). It consists of the members of the National Council and the Federal Council.
The highest courts of Austria's independent judiciary are the Constitutional Court; the Administrative Court, which handles bureaucratic disputes; and the Supreme Court, for civil and criminal cases. Cases in the Administrative and Supreme Courts concerning constitutional issues can be appealed to the Constitutional Court. Justices of the three courts are appointed by the president for specific terms.
The governors of Austria's nine Länder (provinces) are elected by the provincial legislatures. Although most authority, including that of the police, rests with the federal government, the provinces have considerable responsibility for welfare matters and local administration. Strong provincial and local loyalties are based on tradition and history.
Since World War II, Austria has enjoyed political stability. A Socialist elder statesman, Dr. Karl Renner, organized an Austrian administration in the aftermath of the war, and general elections were held in November 1945. In that election, the conservative People's Party (ÖVP) obtained 50% of the vote (85 seats) in the National Council (lower house of Parliament), the Socialists won 45% (76 seats), and the communists won 5% (4 seats). The ensuing three-party government ruled until 1947, when the communists left the government and the ÖVP led a governing coalition with the socialists (now called the Social Democratic Party or SPÖ) that governed until 1966. In that year, the ÖVP won an absolute majority and ruled alone for the next four years. The tables turned in 1970, when the SPÖ became the strongest party for the first time, winning even an absolute majority under its charismatic leader Bruno Kreisky in 1971. Between 1971 and 1999, the SPÖ ruled the country either alone or in conjunction with the ÖVP, except from 1983-86, when it governed in coalition with the Freedom Party (this coalition broke when the right-wing politician Jörg Haider became the leader of the Freedom Party). In 2000, despite emerging only in third place after the elections, the ÖVP formed a coalition with the right wing-populist Freedom Party (FPÖ). The SPÖ, which was the strongest party in the 1999 elections, and the Greens now form the opposition. As a result of the inclusion of the FPÖ on the government, the EU imposed symbolic sanctions on Austria, which were revoked six months later. The U.S. and Israel, as well as various other countries, also reduced contacts with the Austrian Government. The ÖVP was re-elected, this time with a majority of votes, in 2002, and formed another coalition government with the FPÖ, this time largely ignored by other countries.
The Social Democratic Party (SPÖ) traditionally draws its constituency from blue- and white-collar workers. Accordingly, much of its strength lies in urban and industrialized areas. In the 2002 national elections, it garnered 36.5% of the vote. The SPÖ in the past advocated heavy state involvement in Austria's key industries, the extension of social security benefits, and a full-employment policy. Beginning in the mid-1980s, it shifted its focus to free market-oriented economic policies, balancing the federal budget, and European Union (EU) membership.
The People's Party (ÖVP) advocates conservative financial policies and privatization of much of Austria's nationalized industry and finds support from farmers, large and small business owners, and lay Catholic groups, but also from voters without party affiliation, with strongholds in the rural regions of Austria. In 2002, it received 42.3% of the vote.
The rightist Freedom Party (FPÖ) attracts protest votes and those who desire no association with the other major parties. The party's mixture of populism and anti-establishment themes propagated by its aggressive leader Jörg Haider steadily gained support from the beginning of Jörg Haider's leadership in 1986 until it attracted about 27% of the vote in the 1999 elections. However, their voters were soon disillusioned by the party's style of government, and in the 2002 elections they were reduced to just 10%. Recent regional and communal elections led to further losses.
The Liberal Forum (LIF), founded on liberal ideals, split from the Freedom Movement in February 1993. It received 3.65% of the vote in the 1999 election and thus failed to re-enter the national legislature. After being reduced to under 1% in the 2002 election, they disappeared almost completely from public view.
The Greens (GRÜNE), a center party focusing on social and environmental issues, received 9.4% of the vote in 2002. They are particularly strong in the city areas, where they attract the votes of right-wing liberals who find the ÖVP too conservative and left-wing intellectuals alike.