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.

Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria’s status remained unclear for a decade.

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.

The Soviet Union’s collapse in 1991 and Austria’s entry into the European Union in 1995 have altered the meaning of this neutrality.

A prosperous, democratic country, Austria entered the EU Economic Monetary Union in 1999.