Germany's Unity Dreams Dashed By Austria's Alliance

The unification of Germany and Austria, known as the Anschluss, was banned by the Treaty of Versailles and the Treaty of Saint Germain. The unification of these two countries was seen as a threat to European leaders, who worried that a united Germany and Austria would be too powerful. Austria's struggling economy and the desire to preserve Czech security also played a role in the decision to ban the unification. The idea of unification gained support after World War I, when Austria was facing economic difficulties and many Austrians felt that uniting with Germany was necessary for economic survival. However, the Allies prevented this from happening, leading to resentment and paving the way for Nazi Germany's annexation of Austria in 1938.

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Austria's economic instability

The economic instability of Austria played a significant role in shaping the country's path during the interwar period and beyond. Here is an overview of Austria's economic challenges during this time:

Post-World War I Economic Crisis

The end of World War I in 1918 marked the collapse of the Austro-Hungarian Empire, leading to the establishment of new states, including Austria. This abrupt transition had a devastating impact on Austria's economy and infrastructure. The country experienced massive currency devaluation, and the young republic struggled to recover from the economic turmoil caused by the war. The loss of land, industry, and natural resources to neighbouring countries further exacerbated Austria's economic woes.

Slow Recovery and Structural Challenges

Austria's economy went through a prolonged recovery phase during the 1920s. Despite having access to significant resources, such as the lumber industry and mineral production, the country faced structural challenges. The adjustment to becoming a smaller independent state proved difficult, and the economy remained fragile. Additionally, Austria's economic development during this period was uneven, with growth rates comparable to other European countries but lagging in terms of production levels.

Impact of the Great Depression

Towards the end of the 1920s, Austria's economy finally surpassed its pre-war GDP levels, but this progress was short-lived. The global economic crisis of the 1930s hit Austria hard, causing its painstakingly built economy to collapse. This crisis further weakened Austria's economic foundation and made it vulnerable to external influences, including the rise of Nazi Germany and the Anschluss.

Political Factors and Unification Efforts

The economic instability of Austria was closely tied to political factors as well. The Social Democratic parties in Austria and Germany initially supported the idea of reunification, believing it would strengthen their position against conservative counterparts. However, this sentiment shifted over time, and the prospect of unification became less appealing to conservatives in both countries due to religious and cultural differences.

Additionally, the economic challenges in Austria contributed to a sense of uncertainty and instability. Many Austrians questioned the viability of their independent state and looked towards Germany for potential solutions. This sentiment played into the hands of Adolf Hitler and the Nazis, who exploited Austria's economic and political vulnerabilities to pursue their annexation of Austria in 1938, known as the Anschluss.

In conclusion, Austria's economic instability during the interwar period was characterised by a slow recovery from the aftermath of World War I, structural challenges, the impact of the Great Depression, and political factors influencing unification efforts with Germany. This instability had far-reaching consequences, ultimately contributing to the rise of Nazi aggression and the reshaping of Europe.

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The threat of a powerful, united Germany

The idea of a powerful, united Germany was not a new one. The notion of grouping all Germans into one nation-state had been the subject of debate since the dissolution of the Holy Roman Empire in 1806. Austria had wanted a "Greater Germany Solution", whereby the German states would unite under the leadership of the Austrian House of Habsburg. However, Prussia, which would have had to accept a secondary role in this union, had other plans. It aimed to become the central force in unifying the German states and to exclude Austria from its affairs. This controversy, called dualism, dominated Prusso-Austrian diplomacy and the politics of the German states in the mid-19th century.

In 1866, the feud came to an end during the Austro-Prussian War, in which the Prussians defeated the Austrians and excluded the Austrian Empire and German Austrians from Germany. The 1871 unification of Germany, dominated by Prussia, also left out Austria and the German Austrians. This exclusion ensured that Germany would have a substantial Protestant majority.

After World War I, the Allies prevented Austria and Germany from uniting. The 1919 Treaty of Saint Germain and Treaty of Versailles forbade the union and stripped Austria of some of its territories. European leaders worried that a united Germany and Austria would be too large and powerful. Additionally, Austria's economy was in bad shape, and incorporating it into Germany would have further weighed the latter down. Moreover, allowing Germany to gain territory after its defeat in the war would undermine Czech security. Subsequent international financial agreements also required that Austria remain independent from Germany.

The idea of uniting Austria and Germany gained support from the Nazis, who wanted to redraw the map of post-World War I Europe. They considered the postwar international borders unfair and illegitimate, claiming that Germans had been denied the right of self-determination. Adolf Hitler, himself an Austrian, expressed his desire for an Austro-German union in his earliest writings and speeches. The annexation of Austria, which occurred in March 1938, was the Nazi German regime's first act of territorial aggression and expansion.

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The Austrian identity crisis

In the 1920s, Austria faced economic challenges, and some Austrians believed that uniting with Germany was necessary for their country's economic survival. The idea of a union between Austria and Germany was not new, and debates about Austria's role in a German nation-state dated back to the 19th century. However, the peace treaties that ended World War I, such as the 1919 Treaty of Saint Germain and the Treaty of Versailles, expressly forbade such a union, as European leaders feared the potential power of a united Germany and Austria.

The question of national identity in Austria became politically charged, with various parties advocating different positions. The Austrian Christian Social and German National Parties, founded by Karl Lueger and Georg Ritter von Schönerer, promoted a conservative discourse on Austrian identity. Meanwhile, the Austrian National Socialists and other rival parties were banned during the centralisation of power in the chancellor's office in 1933.

The Identitären, a new right-wing movement that emerged in France in 2003 and spread to Austria, represents another aspect of the Austrian identity crisis. This group expresses fear of "multiculturalism" and worries that Austrian society is unable to preserve its authentic identity in a globalised world. They blame "mass immigration" on Austrians themselves, claiming that it is happening because Austrians have allowed it. The Identitären's brand of right-wing extremism is characterised by a lack of violence and apocalyptic undertones, resonating with educated young Austrians concerned about the future.

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The Nazi regime's expansionist agenda

Hitler and the Nazis considered the postwar international borders unfair and illegitimate, and they sought to redraw the map of Europe. They aimed to unite all Germans, both inside and outside the Reich, into an "all-German Reich." This included the annexation of Austria, which had a significant German-speaking population and had been left out of the unification of Germany in 1871. The annexation of Austria, known as the "Anschluss," was the Nazi regime's first act of territorial aggression and expansion, occurring in March 1938.

The Nazis used propaganda, intimidation, and mass manipulation to gain and maintain power in Germany. They exploited economic hardships and political instability to stir up German nationalism and direct anger towards scapegoats, particularly the Jews, who were portrayed as the enemy of society. The Nazis also established a cult of personality around Hitler, who was seen as a strong and decisive leader. Through these tactics, they gained the support of a majority of the German population, who welcomed their promises of national glory and prosperity.

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The Austrian Empire's diverse ethnic groups

The Austrian Empire, formed in 1867, was a diverse and multi-ethnic state. It was comprised of various kingdoms, archduchies, duchies, and earldoms, all ruled over by the Habsburg Monarchy. The Empire was home to at least 17 nations and minority groups, speaking a multitude of languages.

According to the 1868 ethnographic map of the Austrian Monarchy, German was the most commonly spoken language, with 25.2% of the population speaking it as their mother tongue. Other languages spoken included Czech, Hungarian, and Romanian, among several others. The 1910 census in the Kingdom of Hungary, which was part of the Empire, showed that 54.4% of the inhabitants spoke Hungarian as their native language. This included the Jewish ethnic group, which made up around 5% of the population and primarily spoke Hungarian, with German as a secondary language.

The Austrian Empire included diverse ethnic groups such as Hungarians, Slavs (including Croats, Czechs, Poles, Rusyns, Serbs, Slovaks, Slovenes, and Ukrainians), Italians, and Romanians. This diversity led to tensions between the various ethnic groups, with some advocating for the dissolution of the empire. The Istro-Romanians, for example, were counted as Romanians in the census, despite being a distinct ethnic group.

The Empire's diversity was a result of its expansionist policies and consolidation efforts following its defeat in the Austro-Prussian War of 1866. This defeat left the Austrian Empire on the verge of collapse, and it sought to strengthen itself by incorporating new territories. In 1878, for instance, it was allowed to occupy Bosnia and Herzegovina, adding a significant number of Serbo-Croatian speakers to its population.

The Austrian Empire's diverse ethnic makeup had a lasting impact on the region. After the Empire's collapse in 1918 following World War I, new states were established, including Austria, Czechoslovakia, and Poland. These countries were home to millions of people who considered themselves German, even though they were now living outside of Germany. This sense of shared identity and the desire for unification would later be exploited by the Nazis in the lead-up to World War II.

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