The paper analyses the development of Austrian federalism starting with its kelsenian origin up to the recent debate concerning its reform. The Author offers a historical overview of Austrian federalism in order to explain its peculiarities. She then focuses on the paradoxes of Austrian federalism characterized by antinomies such as centralization on one hand and "equl-standing" of federal and sub-national entities on the other, or the contrast between dualistic and cooperative approaches. Moreover, she addresses the role played by local government and by the European integration process in the development of the relations between central government and Member States. In conclusion, the Author offers an overview of both the goals laid out by the Austrian Convention for reforming federalism and the proposals presented up to now. On the basis of the latter, she then suggests the existence of common trends in the development of devolved States in Europe.