Graz is located at the foothills of the Stirian Alps, in south - eastern Austria. It is the capital of the federal state of Stiria and the second largest city Austria. The name of the city comes from the word "Gradec". The city was established at the place of the previous Slavic settlement of the same name. First references to Graz date back to 11th century. However, the town privileges were granted to Graz in 1281 by Rudolf I of Germany.