I\'m using excel 2010 professional plus to create an excel file. Later on I\'m trying to export it as a UTF-8 .csv file. I do this by saving it as CSV (symbol separated....
The problem must be your file encoding, it looks it's not utf-8.
When I tried your example and double checked file that is indeed utf-8, it works for me, I get:
Array ( [0] => 1 [1] => Austria [2] => Österreich )
Use LibreOffice (OpenOffice), it's more reliable for these sort of things.