Famous for its spectacular mountain scenery, is no longer the dominant political force it was in Central Europe under the Habsburg dynasty which ruled until the first world war.
However, its position at the geographical heart of Europe on the key Danube trade route enhances its strategic importance.
OverviewOverviewFactsLeadersMediaAfter being joined to Nazi Germany from 1938-1945, was occupied by the Allies, who divided up the country and the capital Vienna into separate sectors.
However, the 1955 State Treaty - signed by the Allies - guaranteed 's unity, ensuring it did not suffer Germany's fate of being split between the Soviets and the Western Cold War blocs.
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In return, declared permanent neutrality, to which it still adheres.
There were some questions surrounding this when two thirds of voters supported EU membership in a referendum in 1994 and entry followed in 1995.
The entry into 's coalition government of the far-right Freedom Party in February 2000 sent shockwaves across Europe. 's relations with the EU were severely strained after some states imposed sanctions in protest. These were lifted some months later.
The capital, Vienna, is home to key international organisations, including the Organisation for Security and Cooperation in Europe (OSCE), the International Atomic Energy Agency (IAEA) and Opec, the Organisation of Petroleum Exporting Countries.
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