
Austria's history of international relations is complex. In 1938, Austria was annexed by Nazi Germany in what was known as the Anschluss. This union was supported by 99.75% of Austrian voters, who hoped for improved economic conditions and relief from the German boycott that had damaged Austria's economy. However, the annexation was not universally accepted, and Austrian Chancellor Kurt von Schuschnigg attempted to maintain his country's independence. Following World War II, Austria was divided into four occupation zones controlled by the United Kingdom, the Soviet Union, the United States, and France. During this time, Austria experienced political violence, economic exploitation, and the presence of occupying troops. The country regained its independence in 1955 with the signing of the Austrian State Treaty, which guaranteed its neutrality in the emerging Cold War.
| Characteristics | Values |
|---|---|
| Year Austria was occupied by the Allies | 1945 |
| Date Austria was declared independent from Nazi Germany | 27 April 1945 |
| Date the Austrian State Treaty came into force | 27 July 1955 |
| Date the Soviets and Western Allies pulled out of Austria | 1955 |
| Date Austria was fully independent | 25 October 1955 |
| Number of occupation zones Austria was divided into | 4 |
| Countries that occupied the zones | United Kingdom, the Soviet Union, the United States, and France |
| Country that supported Austria's independence | The Soviet Union |
| Country that invaded Austria | Germany |
| Year Austria was invaded | 1938 |
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What You'll Learn

Austria's annexation by Germany
Austria was annexed by Germany on March 12, 1938, an event known as the Anschluss. The annexation was the culmination of years of political tension and upheaval in Austria, as well as a result of Nazi Germany's expansionist ambitions and desire to unite all Germans under a "Greater Germany".
In the early 1930s, Austria experienced economic turmoil due to the Great Depression, with high unemployment and unstable commerce and industry. This provided an opportunity for the Nazi Party to gain support, as they had done in Germany. The Austrian Nazi Party failed to win any seats in the November 1930 general election, but its popularity grew, particularly after Hitler came to power in Germany in 1933. The idea of unification with Germany also gained traction, fuelled by Nazi propaganda campaigns.
Austrian Chancellor Engelbert Dollfuss opposed unification, but he was assassinated by Austrian Nazis in a failed coup attempt in July 1934. This led to many leading Austrian Nazis fleeing to Germany, where they continued to advocate for unification. In 1936, under increasing economic pressure, Chancellor Kurt Schuschnigg signed an agreement with Germany, releasing imprisoned Nazis and declaring Austria a "German state" that would follow Germany's lead in foreign policy. Despite this, the Nazis were not satisfied, and they continued to grow in strength.
In early 1938, Austrian Nazis conspired to seize the Austrian government and unite with Germany. Chancellor Schuschnigg attempted to assert Austrian independence by calling for a plebiscite (referendum) on the issue. However, he was pressured by Hitler to cancel the plebiscite and resign on March 11, 1938. On March 12, German troops marched into Austria, accompanied by Hitler, and were met with enthusiastic crowds. Hitler appointed a new Nazi government, and the annexation was proclaimed.
Austria remained a federal state of Germany until the end of World War II, when the Allied powers declared the Anschluss void and re-established an independent Austria. The annexation of Austria was a significant step in Hitler's plan to create a "Greater German Reich" and expand Nazi influence in Europe.
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Austria's independence
Austria has a long and complex history, with the territory understood by the term 'Austria' undergoing drastic changes over time. The concept of Austrian independence has evolved as its borders shifted and it came under the influence of various empires and alliances.
Early History
In the late Iron Age, the region was occupied by the Hallstatt Celtic culture, which organised as the Celtic kingdom of Noricum, dating from c. 800 to 400 BC. The lands south of the Danube became part of the Roman Empire around the end of the 1st century BC. From the 5th to the 6th century, the Germanic tribe of the Bavarii settled in the region, and in the 7th century, the Carantanians migrated westward, establishing the first independent Slavic state in Europe, known as Carantania (later Carinthia).
Medieval and Early Modern Period
In the 9th century, the Frankish Empire incorporated the region, and it became a margravate of the Duchy of Bavaria. In 1156, Austria became an independent duchy (later an archduchy) of the Holy Roman Empire, which lasted until 1806. During this period, Bavaria and Austria contested territory, with Austria eventually becoming a mostly German-speaking country.
Habsburg Rule
From 1273 to 1918, Austria was dominated by the House of Habsburg and the House of Habsburg-Lorraine. In the early 20th century, the rise of the National Socialists in Germany and the bankruptcy of Austria's most influential bank, Creditanstalt, in 1931, created a tumultuous political environment.
Annexation by Nazi Germany
In 1938, Austria was annexed by Nazi Germany, known as the Anschluss, ending its independence as a republic. Despite some resistance, a referendum on April 10, 1938, showed majority support for the union, influenced by Nazi propaganda. Austria remained part of Germany until the end of World War II.
Post-World War II
After World War II, a provisional Austrian government was established, and on April 27, 1945, it declared the Anschluss null and void, restoring Austria's status as a separate country. However, Austria remained divided into occupation zones controlled by the Allied Commission until 1955.
Second Austrian Republic
On May 15, 1955, the Austrian State Treaty was signed by the United States, Great Britain, France, and the Soviet Union, officially ending the occupation and recognising Austria as a free, independent, and neutral state. This marked the beginning of the Second Austrian Republic, and Austria subsequently joined the European Union in 1995.
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Austria's occupation by the Allies
Austria was occupied by the Allies and declared independent from Nazi Germany on April 27, 1945, following the Vienna offensive. This declaration was confirmed by the Berlin Declaration for Germany on June 5, 1945. The Allies had agreed in the 1943 Declaration of Moscow that Austria would be regarded as the first victim of Nazi aggression, despite the country's role in Nazi crimes, and would be treated as a liberated and independent country after the war.
In the immediate aftermath of World War II, Austria was divided into four occupation zones jointly occupied by the United Kingdom, the Soviet Union, the United States, and France. Vienna, the capital, was similarly subdivided, but the central district was collectively administered by the Allied Control Council. The Soviet Union's occupation of Austria began in June 1941, when Hitler's regime launched a genocidal war against them. The Soviet Union suffered tremendous losses, with most estimates for military losses ranging between 11.4 and 14.6 million. The Soviet troops' arrival on the Third Reich's soil led to mass sexual violence and wild looting by the troops. The Soviet government also imposed burdensome reparations on the country, impoverishing the population. The Soviets arrested and prosecuted Austrians for various charges, including war crimes and everyday criminal activities.
The other Allies also played a role in Austria's occupation. American troops, including the 11th Armored Division, crossed into Austria on April 26, 1945, followed by French and British troops on April 29 and May 8, respectively. The Allied Council of four military governors convened for its first meeting in Vienna on September 12, 1945, and recognized Renner's reformed cabinet on October 20, giving it a go-ahead for the first legislative election. The occupation ended when the Austrian State Treaty came into force on July 27, 1955, and the country evolved from a "nation under tutelage" to full independence.
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Austria's neutrality in the Cold War
Austria was jointly occupied by the United Kingdom, the Soviet Union, the United States, and France after World War II. The country was divided into four occupation zones, with Vienna also subdivided, and the central district was collectively administered by the Allied Control Council. The Soviet Union, in particular, imposed burdensome reparations on the country, with local governments obliged to feed and clothe the Red Army, and the deployment of NKVD teams to extract reparations through seizures of industrial plants and production installations.
The Austrian government, led by Karl Renner, a socialist politician appointed by Joseph Stalin, welcomed the Anschluss and actively participated in Nazi crimes. About 10% of the population joined the Nazi Party, and over 1.3 million Austrians were drafted into the Wehrmacht between 1938 and 1945. However, in 1943, the Allies agreed in the Declaration of Moscow that Austria would be regarded as the first victim of Nazi aggression and treated as a liberated and independent country after the war.
In 1945, the four occupying powers administered a parliamentary election, in which the Communist Party of Austria was trounced, receiving less than six percent of the national vote. A new government was formed by a coalition of the Social Democrats and Christian Democrats, the traditional center-left and center-right Austrian parties. Despite this, the Soviets continued to exercise control in their zone of occupation, and the country remained under joint occupation by the Western Allies and the Soviet Union until 1955.
On May 15, 1955, the four occupying powers signed a treaty that officially ended the state of war in Austria. The Austrian government proclaimed the country's military neutrality in exchange for the withdrawal of occupation forces. This was enacted on October 26, 1955, as a constitutional act of parliament, declaring the country permanently neutral. Austria's neutrality was a direct consequence of the allied occupation, from which the country was freed by the Austrian State Treaty of May 15, 1955.
Austria's neutrality during the Cold War meant that it did not join any military alliances and did not permit the establishment of any foreign military bases on its territory. However, the country did engage in UN-led peacekeeping and humanitarian missions, such as KFOR alongside NATO forces, and participated in EUFOR in Bosnia and Herzegovina and the United Nations Interim Force in Lebanon (UNIFIL).
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Austria's occupation costs
Austria was jointly occupied by the Western Allies and the Soviet Union from 1945 until 1955. In the immediate aftermath of World War II, the country was divided into four occupation zones, with Vienna being similarly subdivided. The four zones were jointly occupied by the United Kingdom, the Soviet Union, the United States, and France.
The Soviet Union's occupation policy in Austria was largely shaped by the Moscow Declaration of 1943, which stated that Austria was the first victim of Nazi aggression but was still responsible for its participation in Nazi aggression. In 1946, occupation costs were capped at 35% of Austrian state expenditures, to be split equally between the Soviets and the Western Allies. However, initially, Austria had to pay the entire occupation bill, which was an enormous burden on the war-ravaged country. In June 1946, 30% of the national budget went into covering the occupation costs. Historian Walter Iber estimated that in total, Austria paid the Soviet Union 36.8 billion Schillings, or two percent of the accumulated GDP, from 1946 to 1955.
The Soviets also expropriated hundreds of businesses, amalgamating these assets into the USIA, a conglomerate of over 400 enterprises. The USIA controlled a substantial, and even monopolistic, share in the glass, steel, oil, and transportation industries. In addition, Moscow deployed NKVD (Soviet secret police) teams of professional looters to extract reparations through requisitions, seizing industrial plants, production installations, and goods in the quantity of 31,200 freight cars.
The Western Allies consented to Moscow's demand that the Soviets should be entitled to German assets in Austria in their zone of occupation, which included oil fields. As a result, according to historian Günter Bischof, Austria ended up paying more than five times what Stalin originally demanded.
The Americans also exerted influence on the Austrian economy, taking a strong anti-cartel stance and pressing the government to remove anti-competition legislation. They were responsible for the creation of the vast monopolistic public sector of the economy, which politically benefited the Socialists. Austria received nearly $1 billion through the Marshall Plan, and half a billion in humanitarian aid. The Americans also refunded all occupation costs charged in 1945–1946, around $300 million. In 1948–1949, Marshall Plan aid contributed 14% of national income, the highest ratio of all involved countries.
The occupation ended when the Austrian State Treaty came into force on 27 July 1955, with the last occupation troops leaving on 25 October 1955. Austria's independence was granted in exchange for promises that the country would remain neutral during the Cold War.
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Frequently asked questions
Austria sought support from France and Britain against the annexation but was unsuccessful.
The British Prime Minister, Neville Chamberlain, made a speech in the House of Commons on 14 March, noting that the British ambassador in Berlin objected to the use of "coercion, backed by force" that undermined Austria's independence. However, he also acknowledged that nothing could have prevented the annexation without the use of force.
Austria's relationship with Germany was complex, with support for union and independence within the country. In the referendum on 10 April 1938, 73.3% of votes in Innervillgraten favoured the Anschluss, but this was the lowest number of all Austrian municipalities. It is estimated that only 20% of the Austrian population supported the union had the referendum been fair. After the annexation, Austria was considered part of Nazi Germany until the end of World War II.
Austria was occupied by the Allies during World War II and was divided into four occupation zones controlled by the United Kingdom, the Soviet Union, the United States, and France. On 27 July 1955, the Austrian State Treaty was signed, restoring Austria's sovereignty and ending the occupation. Austria also agreed to remain neutral in the Cold War.





























