Austria's Peaceful Plan: A Historical Perspective

The Austrian State Treaty, also known as the Austrian Independence Treaty, was signed on May 15, 1955, in Vienna, and established Austria as a sovereign state. This treaty was signed by the Allied occupying powers (France, the United Kingdom, the United States, and the Soviet Union) and the Austrian government. The treaty's basis was the Moscow Declaration of October 30, 1943, which stated that Austria was the first country to fall victim to Hitlerite aggression and should be treated as a liberated and independent country after the war.

The Austrian State Treaty came into force on July 27, 1955, and was a significant milestone in solidifying Austria's independent national identity. It re-established a free, sovereign, and democratic Austria, with the minority rights of the Slovene and Croat minorities also expressly detailed. The treaty also forbade another Anschluss (Austria's political union with Germany) and prohibited Nazi and fascist organizations.

Austria's role in the Middle East Peace Process

Austria has long considered the Middle East a focal point of its foreign policy interest. The country has been actively involved in the Middle East Peace Process, advocating for a negotiated, lasting, and effective two-state solution. As part of this process, Austria engages in high-level political contacts and participates in the deliberations and decisions within the framework of the EU Common Foreign and Security Policy.

Austria has maintained diplomatic relations with Israel since 1956, just a year after the conclusion of the Austrian State Treaty, which established Austria as a sovereign state. In 2022, the two countries signed a Strategic Partnership agreement to deepen their bilateral relations. Austria also has a history of engagement with the Palestinians, having established relations with the Palestine Liberation Organization (PLO) in 1980.

To promote the Peace Process, Austria has implemented an intensive development cooperation program with the Palestinian Authority, UNRWA, and other development organizations. This program focuses on economic and social development, including health, water management, and environmental sustainability, as well as building effective institutions. Austria has also opened a Representation Office in Ramallah and granted diplomatic status to the Palestinian representation in Vienna.

Austria aligns with the EU's position on the Middle East Peace Process, which is based on international law, Israel's right to exist, and previous agreements between Israel and the PLO. The EU is the largest international donor of development assistance and humanitarian aid for building a future Palestinian state.

Austria has welcomed recent steps towards normalizing relations between Israel and Arab states, including the United Arab Emirates, Bahrain, Morocco, and Sudan. It hopes that these developments will lead to further progress in resolving the core conflicts between Israel and its immediate neighbours, including Palestine, Lebanon, and Syria.

The Marshall Plan's impact on Austria

The Marshall Plan, officially known as the European Recovery Program (ERP), was a US aid program that ran from 1948 to 1952 and provided support to 16 Western European countries, including Austria. The initiative was led by US Secretary of State George C. Marshall, who was awarded the Nobel Peace Prize in 1953 for his efforts.

The Marshall Plan played a crucial role in Austria's post-World War II recovery and had a significant impact on the country's economy and political trajectory. Here is an overview of its effects:

Economic Recovery and Growth

The Marshall Plan provided much-needed economic assistance to Austria, which was struggling with a devastated economy, food shortages, and a lack of raw materials in the aftermath of the war. The aid took the form of goods sold in Austria, with the proceeds invested in special accounts. These funds were then used to grant loans to Austrian businesses, promoting growth, enhancing productivity, and boosting employment. The plan helped revitalise key sectors, including industry and the electricity sector, with 23% of allocated funds going into the electricity industry and 13% to the metal industry.

Preventing Division and Promoting Unity

The Marshall Plan is credited with contributing to the great economic boom in Europe after World War II and may have played a role in preventing the division of Austria during the early Cold War era. By providing aid and fostering economic growth, the plan helped stabilise the country and reduce the appeal of communist ideologies. Additionally, it laid the foundation for European unification and transatlantic cooperation with the United States.

Long-Term Impact on Austrian Economy

The funds accumulated through the Marshall Plan were transferred from the US to Austria in 1961, establishing the ERP Fund, which continues to play a significant role in Austrian economic development. The ERP Fund grants around EUR 500 million in loans to Austrian companies annually, fostering long-term economic growth and development.

Political and Cultural Orientation

In addition to economic recovery, the Marshall Plan influenced Austria's political and cultural orientation towards the Western world. It encouraged the country's integration with Western European nations and strengthened its ties with the United States. This was particularly significant given Austria's position as a conflict area in the worsening East-West conflict during the early Cold War period.

Austria's foreign policy interests

Austria's intensive development cooperation program with the Palestinian Authority, UNRWA, and other development organizations in the fields of health, water management, and the environment, as well as in building sustainable and effective institutions, is aimed at securing the peace process through economic and social development.

Austria has also opened a Representation to the Palestinian Authority in Ramallah (West Bank) and granted the Palestinian representation in Vienna the diplomatic status of a Representation of Palestine, reflecting its willingness to actively support the Peace Process.

Furthermore, Austria's foreign policy interests encompass maintaining its neutrality, as declared by its parliament in 1955, and its commitment to international law, as demonstrated in its stance on the Middle East Peace Process.

The Austrian State Treaty

The basis for the treaty was the Moscow Declaration of October 30, 1943, in which the Allies agreed to treat Austria as the first victim of Nazi aggression and as a liberated and independent country after World War II. After the war, Austria was jointly occupied by the Western Allies and the Soviet Union, and its status became a controversial subject during the Cold War. The first attempts to negotiate a treaty were made by the first postwar government, but they failed as the Allies wanted to prioritize a peace treaty with Germany.

The breakthrough in negotiations came in February 1955, following the death of Joseph Stalin in 1953, which led to a warming of relations known as the Khrushchev Thaw. The Austrian State Treaty granted Austria independence and arranged for the withdrawal of all occupation forces. It was the only treaty signed by both the Soviet Union and the United States in the decade after the 1947 Paris Peace Treaties, and it marked the only Cold War-era withdrawal by the Soviet Union from a territory it occupied.

The treaty included nine parts, covering political and territorial provisions, military and air travel provisions, ownership, law, and interests. It also expressly detailed the minority rights of the Slovene and Croat minorities. The treaty prohibited any future political union between Austria and Germany, and Nazi and fascist organizations were banned. Additionally, Austria pledged perpetual neutrality, which was declared by parliament after the last Allied troops left in October 1955.

The Treaty of Saint-Germain-en-Laye

The treaty officially dissolved the Habsburg Empire, recognising the independence of Czechoslovakia, Poland, Hungary, and the Kingdom of the Serbs, Croats, and Slovenes (Yugoslavia). It also ceded eastern Galicia, Trento, southern Tyrol, Trieste, and Istria. Plebiscites determined the disposition of southern Carinthia (which went to Austria) and the town of Sopron (which went to Hungary).

The treaty included significant territorial losses for Cisleithanian Austria, amounting to over 60% of the pre-war Austrian Empire's territory. This included the loss of the Lands of the Bohemian Crown (Bohemia and Moravia), Austrian Silesia, the Kingdom of Galicia and Lodomeria, and adjacent territories to newly created or existing states. Additionally, South Tyrol and Trentino were occupied by Italian forces, and Yugoslav troops entered the former Duchy of Carinthia.

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