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.
German is the official language nationwide; Turkish, Serbian, and
Croatian are also spoken.