ABSTRACT
Austria joined the European Union at the start of 1995, together with Finland and Sweden. The subsequent implementation of the Structural Funds, the European Union's regional policy instrument, was to have a particular impact within the country. The impact of Structural Fund intervention in Austria has been considerable, and not just in financial terms. This chapter highlights key areas where the impact has been greatest and examines, in particular, the institutional ramifications of Structural Fund intervention in the country. It discusses in particular two areas. First, the considerable differences in approach between Austrian and EU regional policy and development and second, the particular difficulties which have been encountered in the implementation of the Structural Funds due to the peculiarities of the Austrian institutional framework. There is a strong tradition of consensus-based decision-making and coalition politics in Austria which also gives powerful voice to social partners. The distinctive political system has exerted considerable influence on the nature of the institutional structures.
