Between 1970 and 1999, the SPO governed the country either alone or with junior coalition partners. In 1999, the OVP formed a coalition with the right wing, populist Freedom Party (FPO). The SPO, which was the strongest party in the 1999 elections, and the Greens formed the opposition. The FPO had gained support because of populist tactics, and many feared it would represent right wing extremism. As a result, the European Union (EU) imposed a series of sanctions on Austria. The U.S. and Israel, as well as various other countries, also reduced contacts with the Austrian Government. After a period of close observation, the EU lifted sanctions, and the U.S. revised its contacts policy. Following 2002 elections, the OVP in February 2003 renewed its coalition with the FPO.

The Social Democratic Party traditionally draws its constituency from blue- and white-collar workers. Accordingly, much of its strength lies in urban and industrialized areas. In the 2002 national elections, it garnered 36.5% of the vote. The SPO in the past advocated heavy state involvement in Austria's key industries, the extension of social security benefits, and a full-employment policy. Beginning in the mid-1980s, it shifted its focus to free market-oriented economic policies, balancing the federal budget, and European Union membership.

The People's Party advocates conservative financial policies and privatization of much of Austria's nationalized industry. It finds support from farmers, large and small business owners, and some lay Catholic groups, mostly in the rural regions of Austria. In 2002, it received 42.3% of the vote. The rightist Freedom Party traditionally had a base in classic European liberalism. However, a mixture of populism and anti-establishment themes steadily gained support in recent years. It attracted about 27% of the vote in the 1999 elections, but only 10% of the vote in 2002. The Liberal Forum, founded on libertarian ideals, split from the Freedom Movement in February 1993. It received 3.7% of the vote in the 1999 election and thus failed to enter the national legislature. The Greens, a left-of-center party focusing on environmental issues, received 9.5% of the national vote in 2002.