Damon Mcknight
Austria's complex history during World War II, including its political union with Germany (Anschluss), its occupation by the Red Army, and its role in Nazi atrocities, has resulted in various demands for compensation. These demands have been made by multiple parties, including the Soviet Union, the Western Allies, and those seeking reparations for the persecution of Jewish communities and other war crimes. The Austrian government has also negotiated compensation payments for Austrian Holocaust survivors and victims of Nazi persecution. Additionally, Austria's post-war independence and sovereignty were established through the Austrian State Treaty in 1955, which included agreements on property rights and concessions with the Soviet Union.
Characteristics of Austria's demands for compensation:
| Characteristics | Values |
|---|---|
| Local governments obliged to feed and clothe the Red Army | 30% of the national budget went to covering the occupation costs in June 1946 |
| Soviet secret police teams seized industrial plants and production installations | 31,200 freight cars worth of confiscated goods |
| Total amount paid to the Soviet Union from 1946 to 1955 | 36.8 billion Schillings or 2% of the accumulated GDP |
| Payment to each former Austrian Jew persecuted by the Nazi regime or who left Austria to avoid persecution | €5,087.10 |
| Number of additional payments made | About 20,000 |
| Total amount paid to Poland and Germany for victims of German aggression | 63 billion euros (87.9 billion euros in 2022) |
| Amount paid to Poland in 1972 for survivors of pseudo-medical experiments | 1.3 billion DM |
| Amount paid to Poland in 1992 by the Foundation for Polish-German Reconciliation | zl 4.7 billion (37.8 billion or US$7.97 billion in 2022) |
| Amount paid to the Netherlands as compensation for the Dutch winter famine of 1944-1945 | 25 billion Guilders |
| Amount paid by the Federal German government to the Dutch in exchange for annexed territory | 280 million Deutschmarks |
| Value of industrial equipment received by Yugoslavia from German factories | US$36 billion |
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What You'll Learn
- Austria avoided paying reparations to the Kremlin
- The Soviet Union seized Austrian industrial plants and goods
- The Austrian State Treaty of 1955 recognised Austrian independence
- Austria agreed to compensate Holocaust survivors for property and assets
- Austria paid additional benefits to Austrian Jews who fled Nazi persecution
Austria avoided paying reparations to the Kremlin
Austria was considered a defeated Axis power by Moscow, but it was also believed to be a victim of Germany. This belief was reflected in the preservation of Austrian territory, despite claims from Yugoslavia, and the avoidance of ethnic cleansing, which Germans from the Third Reich's territories experienced.
The Soviet Union's focus was on Germany, aiming to eliminate it as a potential military threat and turn it into a colony. This resulted in the Soviet troops approaching Austria's border from Hungary in the winter of 1945. The subsequent Vienna Strategic Offensive Operation led to the elimination of the majority of German forces in the south and the Soviet occupation of Austria.
While Austria avoided direct reparations to the Kremlin, it was still burdened by the costs of the Soviet occupation. Local governments were responsible for feeding and clothing the Red Army, which imposed a significant strain on the country's resources. Additionally, Moscow's deployment of NKVD teams for looting and the confiscation of industrial plants, production installations, and goods further extracted reparations from Austria.
It is important to note that Austria has been involved in providing reparations to victims of the Holocaust and Nazi regime, including Austrian Jews and non-Jewish victims of slave labour. These reparations have been negotiated through organizations like the Claims Conference and agreements with other countries, such as the United States.
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The Soviet Union seized Austrian industrial plants and goods
Following the end of World War II, Austria was divided into four occupation zones, with Vienna being collectively administered by the UK, the Soviet Union, the US, and France. This occupation lasted from 1945 until 1955, with the Soviet Union occupying the Eastern zone of Austria. During this occupation, the Soviet Union seized Austrian industrial plants and goods.
The Soviet Union deployed NKVD (Soviet secret police) teams of professional looters to extract reparations through requisitions. These NKVD teams seized industrial plants and production installations while confiscating goods in the quantity of 31,200 freight cars. In June 1946, 30% of Austria's national budget went into covering the costs of the Soviet occupation. In total, it is estimated that Austria paid the Soviet Union 36.8 billion Schillings, or 2% of the accumulated GDP, from 1946 to 1955.
The Soviet occupation of Austria was marked by widespread looting and sexual assaults, with soldiers seizing food and cooking it themselves or forcing civilians to prepare it. These actions violated standing policies, and the command at the level of army groups in Moscow frequently issued orders reminding troops that attacking civilians was impermissible. Despite these orders, the assaults continued and undermined Soviet rule in their occupation zone.
The Western Allies successfully opposed the Kremlin's plans to impose burdensome war reparations on Austria, similar to those imposed on Germany, Romania, and Hungary. However, they consented to Moscow's demand to be entitled to German assets in Austria within their zone of occupation. This included oil fields and other "German assets," which the Austrians agreed to pay for, mostly in kind.
In addition to the seizure of industrial plants and goods, the Soviet occupation of Austria also had significant social and economic impacts. The Austrian economy, including USIA enterprises, reached 61% of pre-war levels by 1947, but consumer goods production lagged at 42%. Food remained a critical problem, with the country surviving on a "near-starvation diet" until the end of 1947. The Soviet occupation also resulted in arrests and political violence, with Soviet military tribunals arresting around 800 Austrian civilians in the initial eight months of occupation.
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The Austrian State Treaty of 1955 recognised Austrian independence
The Austrian State Treaty of 1955 was a significant development that formally recognised Austrian independence and brought an end to the Allied occupation of the country. The road to this treaty was a complex one, shaped by the broader geopolitical dynamics of the time, including the Cold War and the competing interests of various powers.
The first attempts to negotiate a treaty for Austria were made by the country's initial post-war government. However, these efforts were hindered by the Allies' focus on securing a peace treaty with Germany first. With the onset of the Cold War, the prospects for a treaty became even more uncertain. It was only with the death of Joseph Stalin in 1953 and the ensuing period of improved relations, known as the Khrushchev Thaw, that the climate for negotiations became more favourable.
The negotiations with the Soviet foreign minister, Molotov, proved pivotal, leading to a breakthrough in February 1955. Austria's commitment to perpetual neutrality was a key factor in these discussions. As a result of the treaty, Austria was granted full independence on May 15, 1955, marking the departure of the last occupation troops on October 25 of the same year. This date, October 26, subsequently became a national holiday, reflecting the significance of Austria's regained independence.
The Austrian State Treaty addressed various issues beyond independence, including general regulations and the recognition of the Austrian state. Notably, it expressly detailed the minority rights of the Slovene and Croat minorities. The treaty also prohibited any future political union between Austria and Germany, known as "Anschluss", which had occurred in 1938. Additionally, it banned Nazi and fascist organisations within Austria.
It is worth noting that Austria's path to independence and the terms of the treaty were influenced by the country's role during World War II. While the Allies recognised Austria as the first victim of Nazi aggression in the 1943 Declaration of Moscow, they also acknowledged the country's complicity in Nazi crimes. This dual recognition shaped the negotiations and the ultimate outcome of the Austrian State Treaty.
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Austria agreed to compensate Holocaust survivors for property and assets
In 2001, Austria agreed to compensate Holocaust survivors for property and assets that were stolen and "Aryanized" during World War II. This agreement, known as the Washington Agreement, was signed in Washington, D.C., by the U.S. and Austrian governments, the Claims Conference, representatives of Austrian Jewish survivors, and class action lawyers. The Claims Conference, a nonprofit organization founded in 1951 by representatives of 23 major international Jewish organizations, has been instrumental in negotiating and disbursing funds to Holocaust survivors worldwide, including those in Austria.
The Washington Agreement specifically addressed the compensation for property and assets stolen from Austrian Jews during the Nazi era, when the country was annexed to Adolf Hitler's Third Reich. Austria's role during World War II, as part of the Third Reich, resulted in the persecution of its former Jewish community, with an estimated 700,000 people, or 10% of the population, joining the Nazi Party. As a result of the 2001 agreement, Austria created the General Settlement Fund to compensate Holocaust victims for their losses, including businesses, property, bank accounts, and insurance policies.
The Austrian National Fund, based in Vienna, is responsible for making the compensation payments to eligible former Austrian Jews. These payments are a one-time sum of €5,087.10 and are not dependent on income or assets. The fund also provides additional financial assistance through the Austrian Holocaust Survivor Emergency Assistance Program, which helps survivors with nursing care payments and other social welfare benefits.
In addition to the one-time payments, the Austrian government has also agreed to provide pension payments to eligible survivors. This includes Austrian Jews born between January 1, 1933, and March 12, 1938, who are entitled to apply for an Austrian pension. The Austrian Parliament has also extended legal social welfare regulations to include the ability to purchase pension years for individuals born up until May 8, 1945, who were persecuted within Austria or lived under persecution in another country.
The Claims Conference continues to negotiate with the Austrian government for additional benefits and compensation for Holocaust survivors from Austria, ensuring that survivors receive the support and recognition they deserve.
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Austria paid additional benefits to Austrian Jews who fled Nazi persecution
Austria has paid and continues to pay additional benefits to Austrian Jews who fled Nazi persecution. In 2001, the Claims Conference, a nonprofit organization that secures material compensation for Holocaust survivors worldwide, negotiated with the Austrian government to partially compensate Holocaust survivors for property and assets that were stolen during World War II. This agreement, known as the Washington Agreement, was signed in Washington, D.C. by the U.S. and Austrian governments, the Claims Conference, representatives of Austrian Jewish survivors, and class action lawyers. The Austrian government agreed to pay $7,000 to each surviving Austrian Jew for the loss of rental apartments, business leases, household furniture, and/or personal belongings.
In 2023, the National Fund of the Republic of Austria for Victims of National Socialism announced that it would provide additional payments to persons who had previously received payment if they met certain criteria, such as having a special need or a disproportionately low monthly income. The Austrian Parliament also amended the citizenship act for Nazi victims, allowing them and their descendants to regain or acquire Austrian citizenship through a simplified process.
In addition to these financial compensations, Austria has also offered citizenship to the descendants of Jews who fled the Nazis. This offer was made under a new law that campaigners say delivers a measure of historic justice for the expulsions of Jewish refugees under Nazi rule. About 120,000 Jewish refugees fled persecution after the Nazis took power in Austria in March 1938, and most of them naturalized in their adoptive countries due to the postwar Austrian state's bar on dual citizenship. While some critics in the Austrian Parliament suggest that enough has been done for the victims, the current chancellor, Sebastian Kurz, has repeatedly asserted the country's responsibility towards Austrian victims of national socialism.
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Frequently asked questions
In 1943, the Allies agreed in the Declaration of Moscow that Austria would be regarded as the first victim of Nazi aggression and would be treated as a liberated and independent country after the war.
The Austrian government agreed to make a payment of €5,087.10 to each former Austrian Jew who was persecuted by the Nazi regime or left Austria to escape persecution.
Yes, from 1946 to 1955, Austria paid the Soviet Union 36.8 billion Schillings, or two percent of its accumulated GDP.
No, despite Yugoslavia's claims to Carinthia, a southern province of Austria, the country successfully retained its territory.
Austria was "so impoverished" after World War I that it did not pay any reparations beyond credits for transferred property.
