The Austrian-German Relationship in EMU Reform: From Asymmetric Partnership to Increased Independence

The relationship between Austria and Germany is characterised by many political cultural commonalities strong economic interdependencies. Moreover, the asymmetry two countries, both in terms of size power, has long time as one ‘leader’ ‘follower’. Yet, despite these ties, assumed an increasingly independent role recent EMU politics. Therefore, this article asks whether why close partnership countries slowly growing apart. Based on analysis three periods reform, shows that followed during fast-burning phase euro crisis (2010–12), became more self-reliant its slow-burning (2012–16), even opposed German positions post-crisis reform (2016–20). Converging preferences power can explain Austria’s cooperative strategy until 2016. By contrast, shift from loyal followership towards pronounced independence largely caused domestic developments. reluctance Austrian government to share risks build joint capacities reflects a Europe-wide trend, increasing ‘constraining dissensus’ at national level makes it difficult for small state governments compromise European level.