Graz is the second-largest city in Austria and the capital of the federal state of Styria.
Graz was originally the site of a Roman fort. Later a small castle was built here by the Slovenians, which in time became a heavily defended fortification. 'Gradec' literally means "small castle" in Slovenian. The German name 'Graz' was first used in 1128, and during this time dukes under Babenberg rule made the town into an important commercial center. Later Graz came under the rule of the Habsburgs, and in 1281 gained special privelages from King Ruldoph I.
In the 14th century Graz became the city of residence of the Inner Austrian line of the Habsburgs. The royalty lived in the Schlossburg and from there ruled Styria, Carinthia, and parts of today's Italy and Slovenia (Carniola, Gorizia and Gradisca).
In the 16th century, the city's design and planning was primarily controlled by Italian Renaissance architects and artists. One of the most famous buildings built in this style is the Landhaus, designed by Domenico dell'Allio, from which the local rulers used as a governmental headquarters.
In the last few years new public buildings have been erected within the city. The most famous ones are the "Kunsthaus" (house of modern art) by Peter Cook (architect) and Colin Fournier, a museum which is constructed right next to the river Mur, and the "Murinsel" (island in the Mur) which is an island made out of steel, situated in the river. It was designed by the American architect Vito Acconci and contains a cafeteria, an open-air theatre and a playground.
Since 1999 the old town centre of Graz has been listed as World Cultural Heritage by UNESCO. During the year 2003 Graz had the title of "Cultural capital of Europe".