Austria lies in the heart of Europe, right between Western Europe and the Central-Eastern Europe region. It has a population of just over 8 million people, and the capital city is Vienna.

The Constitutions

Modern Austrian constitutional history began in 1948, the year of European revolutions. Up to that point, the constitutional idea of the French Revolution of 1789 and the American Independence Movement had been successfully suppressed by the absolute monarchies of continental Europe. After the resignation of Austrian State Chancellor Klemens Prince of Metternich, the chief architect of that autocratic system, in March 1848, a series of Austrian constitutions up to 1867 mark the path towards constitutional monarchy. Defeat in World War I (1914 - 1918) led to the dismemberment of the Austro-Hungarian Monarchy and to the revolutionary formation of a new state called “German - Austria”. The Emperor withdrew and a republic was proclaimed.

The peace treaty of St. Germain in 1919 fixed the boundaries of the new state, gave it a new name - Austria (Österreich) - and prohibited it from merging with Germany.

On October 1, 1920 a Constitutional Convention adopted a new Federal Constitution (Bundesverfassungsgesetz, B-GV), which was amended in 1925 to implement the separation of powers between the Federation and the Länder, and again in 1929 to strengthen the presidential elements. This constitution had remained in force until 1934, and had been readopted in 1945.

Immediately after World War II, on 1 May 1945, Austria's Constitution of 1920 as amended in 1929, which was notably drafted by Professor Hans Kelsen, was re-enacted. However, it took ten more years until Austria's full sovereignty was re-established by the conclusion of a state treaty on 15 May 1955 between Austria and the Allies, France, UK, USA and USSR. In the same year, Austria declared its permanent neutrality by constitutional law.  On 1 January 1995, Austria joined the European Union, and also became a member of the European Currency Union.

The civil rights of the citizens were first guaranteed in 1867. These rights were adopted and incorporated into the present Constitution, along with the rights provided by the European Convention on the Protection of Human Rights and Fundamental Freedoms of November 4, 1950, which was ratified by Austria in 1958.

Currently, Austria is a democratic, federal republic. Immediately after World War II, on 1 May 1945, Austria's Constitution of 1920 as amended in 1929, which was notably drafted by Professor Hans Kelsen, was re-enacted. However, it took ten more years until Austria's full sovereignty was re-established by the conclusion of a state treaty on 15 May 1955 between Austria and the Allies, France, UK, USA and USSR. In the same year Austria declared its permanent neutrality by constitutional law. On 1 January 1995, Austria joined the European Union, and also became a member of the European Currency Union.

The Austrian Constitution establishes Austria as a representative, or indirect, democracy with a two chamber parliamentary system, in which the separation of powers principle is recognized. Most legislative power lies within the Nationalrat (National Assembly), which is elected by general federal elections every fourth year. On the other hand, the members of the second chamber, the Bundesrat (Federal Assembly), are nominated by the diets of the nine autonomous Provinces (Länder). The Federal Assembly represents the interests of the Federal Provinces.

Austria's formal head of state is the "Bundespraesident" (Federal President), who is directly elected by the populace. The country's government is headed by the "Bundeskanzler" (Federal Chancellor), in whom most political power is vested. Federal legislation is first signed by the Federal President and then countersigned by the Federal Chancellor.

Private Law is divided into General Private Law, applicable to all persons, and specialized forms of Civil Law, which is applicable only to certain categories, such as Commercial Law for businessmen or Employment Law for employers and employees. The major part of what is considered General Private Law is regulated in a comprehensive Private Law Code called the Allgemeine Buergerliche Gesetzbuch / Austrian General Civil Code (ABGB). Although case law is not legally binding, it does have decisive persuasive authority.

A number of fundamental principles, all of which originate from Roman law, form the basis of Austrian Private Law. The principle of Privatautonomie (individual freedom) is the freedom to pursue legal relations in the form and manner determined by the parties. Said principle is expressed more precisely in the principle of contractual and testamentary freedom (Vertragsfreiheit), which includes the freedom (i) over the form of the contract, (ii) the content of the contract, and (iii) to dissolve a contract. A further fundamental principle is the principle of consensus (Konsensprinzip), which provides that any change in the legal position can only be achieved by consent. Any contract infringing good mores will be deemed void according to Section 879 ABGB. Good faith is protected by Section 367, allowing those in good faith to acquire from bad faith or non-entitled possessors.

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