ABSTRACT
This chapter focuses on the considerations that led the Austrian government to the conclusion that advanced economic integration required full membership. The analysis shows that the European Community (EC) initiative to establish a genuine single market – the "1992" program – threatened to disrupt Austria's existing and future participation in the West European economy. Austria had apparently resolved the challenge of achieving economic integration with the EC without compromising its political autonomy when it concluded its free trade agreement with the EC. Likewise, although European Free Trade Association-EC cooperation had benefits, progress had been slow and limited. The Austrian government's initial response to 1992 was a multitrack strategy designed to minimize the divergence of Austrian policies from those of the Community, to reduce or abolish trade barriers, and to lay the foundation for future integration. Austria also undertook unilateral steps to keep pace with developments in the Community.
