Introduction

Background

Originally the hub of authority for the extensive Austro-Hungarian Empire, Austria was transformed into a modest republic following its defeat in World War I. In 1938, Austria was annexed by Nazi Germany, and after the war concluded, the victorious Allied forces occupied the nation in 1945. Consequently, Austria's status was ambiguous for a decade post-World War II, until a State Treaty was executed in 1955, which concluded the occupation, affirmed Austria's sovereignty, and prohibited any unification with Germany. That same year, a constitutional law established the nation's "perpetual neutrality" as a prerequisite for the withdrawal of Soviet military forces. Austria became a member of the EU in 1995, but its commitment to neutrality prevented it from joining NATO; however, the nation did participate in NATO's Partnership for Peace program in 1995. Austria also became part of the EU Economic and Monetary Union in 1999.