In the year 2013 Austria kept a generally stable political situation. An early election was held on September 28，2013 and the new grand coalition government by SPÖ and ÖVP was sworn in in December 2013. Slow economic recovery continued in 2013，but no optimistic prospect can been seen. Despite the fact that the performance of the labor market in Austria is one of the best among that of the EU countries，its unemployment rate kept rising. The economic policy in Austria will focus on stabilizing public finance and promoting social security reform. As regards the foreign affairs，Austria will continue to support the EU’s policy in reaction to debt crisis and its further enlargement towards east Europe. At the same time，it attaches great importance to its relationships with China，South Africa and the other emerging countries.