Federalism is the regulating principle to be applied to state and society which allows the utmost pluralism that is possible in a common unit. Both the federation and the states must enjoy equal status and agree to keep the self-determination of the states as well as the loyalty to the federation. Furthermore, the federation may only assume those competencies that cannot be performed by the states (principle of subsidiarity). Constitutionally, the principle of federalism is realized in the shape of a federal state.
Austria is a federal state which consists of the Länder Burgenland, Kärnten, Niederösterreich, Oberösterreich, Salzburg, Steiermark, Tirol, Vorarlberg und Wien. Contrary to their long independent history and to their important function regarding the formation of the Austrian federal system after the end of the Austro-Hungarian monarchy as well as after the Second World War the Austrian Federal Constitution authorizes the federation to predominate over the Länder in many fields. Austrian federalism is characterized by the (limited) constitutional autonomy of the Länder, the distribution of competencies between the federation and the Länder, the participation of the Länder in the process of federal legislation through the Federal Council, financial equalization between the federation, the Länder and local municipalities, indirect federal administration by the Länder and several elements of co-operative federalism. The principle of federalism has also been embodied in the constitutions of many other states of the world.
On the level of the European Union, federalism can be found in the shape of the subsidiarity principle (Art 5 EC Treaty). Under Art 263 - 265 EC Treaty local and regional entities are represented in the Committee of the Regions. Furthermore, EU planning and programmes must consider regional and local autonomy (principle of partnership). Additionally, the development of European regionalism, which establishes new regional systems and strengthens the existing, has become the basis of an intensive process of trans-border cooperation.
Austria is a federal state which consists of the Länder Burgenland, Kärnten, Niederösterreich, Oberösterreich, Salzburg, Steiermark, Tirol, Vorarlberg und Wien. Contrary to their long independent history and to their important function regarding the formation of the Austrian federal system after the end of the Austro-Hungarian monarchy as well as after the Second World War the Austrian Federal Constitution authorizes the federation to predominate over the Länder in many fields. Austrian federalism is characterized by the (limited) constitutional autonomy of the Länder, the distribution of competencies between the federation and the Länder, the participation of the Länder in the process of federal legislation through the Federal Council, financial equalization between the federation, the Länder and local municipalities, indirect federal administration by the Länder and several elements of co-operative federalism. The principle of federalism has also been embodied in the constitutions of many other states of the world.
On the level of the European Union, federalism can be found in the shape of the subsidiarity principle (Art 5 EC Treaty). Under Art 263 - 265 EC Treaty local and regional entities are represented in the Committee of the Regions. Furthermore, EU planning and programmes must consider regional and local autonomy (principle of partnership). Additionally, the development of European regionalism, which establishes new regional systems and strengthens the existing, has become the basis of an intensive process of trans-border cooperation.

