Once the center of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Nazi Germany annexed Austria in 1938, and the victorious Allies then occupied the country in 1945. As a result, Austria’s status remained unclear for a decade after World War II, until a State Treaty signed in 1955 ended the occupation, recognized Austria’s independence, and forbade unification with Germany. A constitutional law that same year declared the country’s “perpetual neutrality” as a condition for Soviet military withdrawal. Austria joined the EU in 1995, but the obligation to remain neutral kept it from joining NATO, although the country became a member of NATO’s Partnership for Peace program in 1995. Austria entered the EU Economic and Monetary Union in 1999.
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