Austria's Annexation: Germany's Justification And Reasoning

The annexation of Austria by Nazi Germany, known as the Anschluss, was carried out by Adolf Hitler in 1938. The unification of the two countries was a long-held dream of Hitler's, who wished to create a Greater Germany that included all German speakers. Austria's wealth of raw materials, currency reserves, and strategic position were additional reasons for the annexation. The invasion was justified by the Nazis as a means to restore public order in Austria, and it was met with little resistance from the Austrian government or international powers.

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Austria's raw materials and labour force

The annexation of Austria, known as the Anschluss, was the first act of territorial expansion committed by Nazi Germany. The idea of a union between Austria and Germany dated back to the 1871 unification of Germany, which excluded Austrian and German Austrians. The notion of the Anschluss gained support after the fall of the Austro-Hungarian Empire in 1918, and the subsequent creation of the Republic of German-Austria, which sought to unite with Germany. However, this union was forbidden by the 1919 Treaty of Saint Germain and the Treaty of Versailles, which also stripped Austria of some of its territories.

In the 1930s, Austria faced economic turmoil due to the Great Depression, resulting in high unemployment, unstable commerce, and industry. This economic instability fuelled political unrest, with the Social Democrats and the Christian Social Party emerging as the two dominant political forces, often clashing with each other. The rise of Nazi Germany posed a significant external threat to Austria, as Adolf Hitler, an Austrian-born German nationalist, sought to annex his birth country to Germany.

Austria was an attractive target for annexation due to its abundance of raw materials and labour force. It supplied Germany with magnesium and played a crucial role in the iron, textile, and machine industries. Additionally, Austria possessed gold and foreign currency reserves, a large number of unemployed skilled workers, and hundreds of idle factories. These factors made Austria an appealing prospect for German rearmament efforts and contributed to the justification for annexation.

The Nazis' desire to annex Austria was also driven by their ambition to redraw the map of post-World War I Europe. They considered the existing borders unfair and illegitimate, claiming that Germans had been denied the right of self-determination. By annexing Austria, the Nazis aimed to achieve their goal of forming a "Greater Germany," uniting all Germans and fulfilling their nationalist ideals.

On 12 March 1938, German troops crossed the Austrian border and were met with cheers and flowers from the Austrian population. The Austrian Nazi Chancellor, Seyss-Inquart, signed the "Reunification of Austria with Germany" law, formally incorporating Austria into Nazi Germany. This event marked the end of Austria's existence as an independent state and the culmination of years of internal strife and external pressure.

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Austria's gold and currency reserves

The annexation of Austria, known as the Anschluss, was the first act of territorial expansion committed by Nazi Germany. The idea of a union between Germany and Austria was not new and had been proposed as early as 1920 in the Nazi Party Platform. The annexation was popular in both countries, and Austrians welcomed Hitler warmly as he travelled through the country.

Austria was a target for German investment capital during the 1920s and was rich in raw materials and labour. It supplied Germany with magnesium and the products of the iron, textile, and machine industries. It also had gold and foreign currency reserves, many unemployed skilled workers, and hundreds of idle factories.

The exact amount of gold and foreign currency reserves that Austria had at the time of the annexation is unclear. However, one source mentions that of the 78.2 tons of gold confiscated by the Deutsche Reichsbank in 1938, 50.1 tons were returned after World War II. Another source mentions that 50,182 kilograms of gold, valued at 470 million Austrian schillings in 1938, were returned to the OeNB after the war.

Austria's monetary system was quickly incorporated into the Third Reich, and by March 17, 1938, the Reichsmark had been introduced in Austria by decree. The National Socialists pumped up the money supply enormously to finance the war, and by the end of World War II, an estimated 11 billion Reichsmark were in circulation.

In the post-war period, Austria's gold holdings increased significantly due to the country's rapid economic recovery. By the 1980s, Austria's gold holdings had peaked at around 657 tons. As of 2018, half of Austria's gold reserves, totalling 280 tons, are stored domestically, with the other half in the UK and Switzerland.

Austria's strategic position

One aspect of Austria's strategic position is its role in maintaining peace and security. Austria has a long-standing tradition of active participation in international organisations such as the United Nations, the Organization for Security and Co-operation in Europe (OSCE), and the Council of Europe. Through its membership, Austria contributes to peace missions, crisis management activities, and rescue operations in disaster areas. Vienna, the Austrian capital, is a significant hub for international diplomacy, hosting various United Nations organisations, the OSCE Secretariat, and other important institutions. This makes Austria a crucial venue for international negotiations and summits.

Austria's commitment to peace is further demonstrated by its support for successive sanctions packages against Russia during the Ukraine conflict and its emphasis on providing humanitarian aid to Ukraine. Additionally, Austria's history of neutrality and its non-nuclear stance provide a unique perspective in international relations, allowing it to serve as a platform for new alliances and a facilitator of dialogue between conflicting parties.

In terms of economic strategy, Austria has a robust agricultural sector, focusing on sustainable competitiveness and resilience. The country also contributes to international efforts for a climate-sensitive energy policy and has implemented measures to protect its natural resources and improve its climate resilience.

Furthermore, Austria's strategic position has been influenced by its relationship with neighbouring countries. The annexation of Austria by Nazi Germany in 1938, known as the "Anschluss," was a significant event in European history. The Nazis, led by Adolf Hitler, pursued an aggressive foreign policy, and the annexation of Austria was their first act of territorial expansion. Austria was rich in raw materials and labour, providing Germany with magnesium, iron, textile, and machine industry products.

Hitler's nationalist ideas

Hitler, an Austrian-born German, developed his nationalist ideas at a young age. He was exposed to German nationalist sentiments in the Mariahilf district of Vienna, where he lived, and was influenced by local newspapers and pamphlets promoting prejudice and racist rhetoric. Hitler's nationalist ideology was shaped by various sources, including philosophers, politicians, and social and political movements.

One significant influence on Hitler's nationalist ideas was the Austrian politician Georg Ritter von Schönerer, a radical pan-Germanic nationalist who advocated for the incorporation of Austria into the German Empire and denounced the Jewish and Slavic minorities in the Austro-Hungarian Empire. Hitler also became strongly influenced by Nordicist philosophers like Jörg Lanz von Liebenfels and Houston Stewart Chamberlain, who promulgated the theory of ""Aryan Herrenvolk"" and racial superiority. These ideas aligned with Hitler's own anti-Semitic and anti-Slavic sentiments, which he developed during his time in Vienna.

Hitler's nationalism was also shaped by his involvement with the German Workers' Party (DAP). He was impressed by the founder Anton Drexler's nationalist, antisemitic, anti-capitalist, and anti-Marxist ideas. Hitler joined the DAP in 1919 and quickly became its chief of propaganda, utilising his oratory and propaganda skills to spread his nationalist message.

Austria's lack of resistance

Political Factors

The Austrian government's inability to mount an effective resistance can be traced back to the country's internal political struggles and the influence of Nazi sympathizers within its ranks. In the years leading up to the annexation, Austria experienced political instability, with the rise of Austrian Nazis and their attempts to seize power. Chancellor Kurt von Schuschnigg, who followed a similar political course as his predecessor, Engelbert Dollfuss, tried to suppress Nazi supporters using police force and internment camps. However, the remaining Austrian Nazis continued terrorist attacks, causing a significant death toll. Schuschnigg, facing pressure from Hitler and his own cabinet, eventually gave in and resigned, pleading with Austrian forces not to resist the German advance.

Economic Factors

Austria, like Germany, was suffering from the economic fallout of the Great Depression, characterized by high unemployment, unstable commerce, and struggling industries. By 1937, Germany's rapid rearmament and Austria's rich natural resources increased Berlin's interest in annexing the country. Austria's raw materials, skilled labour force, and potential hydroelectric resources made it an attractive target for German expansion.

Social Factors

Public opinion in Austria regarding annexation was mixed. While there was initial opposition, with Austrian public opinion against German annexation reaching 60% in 1933, the sentiment shifted over time. The idea of a united Austria and Germany, forming a "Greater Germany," resonated with some Austrians, especially those holding German nationalist and antisemitic views. Additionally, the lack of outside pressure for political reform and the absence of a thorough denazification process after the fall of the Nazi regime contributed to the perception of Austria as a willing participant in the annexation.

Intimidation and Suppression

The German army's presence and the intimidation tactics employed by the Nazis played a significant role in the lack of resistance. By the time of the annexation, the German military had already occupied Austria, making the annexation a "fait accompli." Austrians who opposed the annexation were subjected to extensive intimidation and suppression, preventing concerted resistance.

Nazi Infiltration and Propaganda

Austrian Nazis, supported by their German counterparts, actively worked to undermine the Austrian government and promote unification. They carried out terrorist attacks and infiltrated various levels of society, spreading propaganda and gaining support for the idea of a united "Greater Germany." The Nazis' aggressive foreign policy and Hitler's expansionary ambitions were well-known, and the failure of other European powers to act decisively only emboldened them further.

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