Austrian State Treaty (1955)

The Austrian State Treaty, signed on 15 May 1955, was a landmark international agreement that re-established Austria as a free, independent, and sovereign state after its occupation by the Allied powers following the Second World War. The treaty formally ended the state of military occupation and restored Austria’s territorial integrity, marking the country’s emergence as a neutral nation in post-war Europe. It remains one of the most significant diplomatic achievements of the Cold War era and a key turning point in Austria’s modern history.

Historical Background

Following the defeat of Nazi Germany in 1945, Austria, which had been annexed by Germany in the Anschluss of 1938, was liberated by Allied forces. The Allied powers the United States, the Soviet Union, the United Kingdom, and France divided Austria into four occupation zones, similar to the division of Germany. Vienna, the capital, was also divided into four sectors, with a jointly administered international zone in the city centre.
Austria’s post-war status was initially uncertain. The Allies had declared in the Moscow Declaration of 1943 that Austria would be liberated rather than treated as an enemy nation, as long as it took steps to free itself from Nazism. However, the country’s occupation continued for a decade due to disagreements among the Allies over Austria’s future political alignment, particularly amid rising Cold War tensions between East and West.
The situation was complicated by the presence of Soviet forces in eastern Austria, which held strategic importance due to its proximity to Eastern Europe. Western powers feared that Austria might fall under Soviet influence, similar to neighbouring Hungary and Czechoslovakia. Negotiations over Austria’s sovereignty were thus delayed until the early 1950s, when the international climate began to stabilise.

Negotiation and Signing of the Treaty

Serious negotiations toward an Austrian settlement began after the death of Joseph Stalin in 1953, which ushered in a period of relative diplomatic thaw between the East and West. The Austrian government, led by Chancellor Julius Raab and Foreign Minister Leopold Figl, played an active role in promoting compromise and reassuring both blocs of Austria’s commitment to neutrality.
Talks took place primarily in Moscow and Vienna between Austrian and Allied representatives. The Soviet Union agreed to withdraw its occupation forces on the condition that Austria declare permanent neutrality and refrain from joining any military alliances.
On 15 May 1955, the Austrian State Treaty was signed in the Belvedere Palace in Vienna by the foreign ministers of the four occupying powers Vyacheslav Molotov (USSR), Harold Macmillan (UK), John Foster Dulles (USA), and Antoine Pinay (France) along with Austria’s Foreign Minister Leopold Figl.
The treaty came into force on 27 July 1955, following ratification by all signatories. The last Allied troops left Austria on 25 October 1955, and on the next day, 26 October, Austria officially declared permanent neutrality, a principle enshrined in its constitution and still observed today.

Main Provisions of the Treaty

The Austrian State Treaty consisted of nine parts and 38 articles, covering political, military, and economic issues. Its main provisions were as follows:

1. Restoration of Sovereignty:
   • Austria was recognised as an independent and democratic state.
   • All occupation rights and controls by the Allied powers were terminated.
2. Territorial Integrity:
   • Austria’s pre-1938 frontiers were restored, confirming its borders as they existed before the Anschluss.
   • The country was prohibited from any future political or economic union with Germany.
3. Demilitarisation and Neutrality:
   • Austria agreed not to allow the establishment of foreign military bases on its soil.
   • It committed to maintaining permanent neutrality, meaning it would not join military alliances such as NATO or the Warsaw Pact.
4. Prohibition of Nazism:
   • The treaty explicitly banned the Nazi Party and any affiliated organisations.
   • Austria was required to continue denazification, prosecute war criminals, and prevent the resurgence of National Socialist ideology.
5. Human Rights and Democracy:
   • Austria pledged to guarantee basic human rights, including freedom of speech, religion, and association.
   • The new Austrian state was to be democratic and republican in form.
6. Minority Protection:
   • The rights of ethnic minorities, especially Slovene and Croat communities in southern Austria, were formally recognised and protected.
7. Economic and Property Clauses:
   • Austria was required to return or compensate for property confiscated during Nazi rule.
   • The Soviet Union agreed to relinquish certain industrial assets in exchange for compensation, including the establishment of the Austro-Soviet Danube Shipping Company.
8. Prohibition of Anschluss:
   • Article 4 of the treaty permanently forbade any political or economic union between Austria and Germany, ensuring Austria’s independent status.
9. Military Limitations:
   • The Austrian Armed Forces were restricted in terms of size and armament, though sufficient for national defence.

Austria’s Declaration of Neutrality

Following the withdrawal of Allied troops, Austria formally proclaimed permanent neutrality on 26 October 1955, a day now celebrated annually as Austria’s National Day. The declaration, passed by the Austrian Parliament, committed the country to abstain from joining any military alliances and to forbid foreign military bases on its territory.
This neutrality was inspired by Switzerland’s long-standing model and became a cornerstone of Austrian foreign policy. During the Cold War, Austria maintained balanced diplomatic relations with both the Western bloc and the Soviet Union, often serving as a bridge between East and West and a venue for international diplomacy.

International and Political Significance

The Austrian State Treaty holds major historical and diplomatic importance for several reasons:

• End of Occupation: It formally concluded ten years of foreign occupation, restoring Austria’s independence.
• Model for Peaceful Settlement: It demonstrated that cooperation between Cold War rivals was possible through negotiation and compromise.
• Emergence of Neutral Austria: The treaty laid the foundation for Austria’s role as a neutral and peace-promoting state, later hosting major international organisations such as the United Nations Office at Vienna (UNOV) and the Organization for Security and Co-operation in Europe (OSCE).
• Cold War Symbolism: The agreement symbolised a rare moment of détente in an otherwise tense geopolitical era, contrasting with the division of Germany into East and West.

Long-term Impact

The Austrian State Treaty established the framework for Austria’s post-war identity and foreign policy. Over the subsequent decades, Austria’s neutral status became central to its national identity and international standing. It allowed Austria to develop into a prosperous democratic state, free from the ideological confrontation that divided Europe during the Cold War.
In later years, Austria joined the European Union in 1995 while maintaining its military neutrality, demonstrating that neutrality was compatible with political and economic integration.