After the Second World War (1946-1955)
1947→ Marshall Plan
1955 → Austria becomes independent again. Austria joins the UN.
POLITICS
When World War II ended in 1945, Austria was divided into four occupied zones by the allies:
- United States
- France
- Britain
- Russia
These areas were strictly separated from each other and the occupation lasted for 10 years.
Conservatives and socialists co-ruled the Second Republic of Austria, which did not achieve full independence until 1955 when the Treaty of the Austrian State was ratified, in which Austria proclaimed permanent neutrality and became a free, sovereign and democratic country.
In addition to the general regulations and the recognition of the Austrian State, the treaty also expressed the rights of the Slovenian and Croatian minorities. On the other hand The "Anschluss" and the Nazi and fascist organizations were forbidden.
From the treaty, the Allies left the Austrian territory and this year Austria joined the United Nations.
In 1970, the Socialist Party (SPÖ) won the elections, and Bruno Kreisky (a Jew, born in Vienna), ruled in a minority. Between 1971 and 1975, the SPÖ monopolized the government, thanks to economic stability and a policy of moderate social reform. Kreisky resigned in 1983, losing the SPÖ majority. In coalition with the Freedom Party (FPÖ), the SPÖ maintained the policy of social welfare and neutrality at the international level.
ECONOMY
When in 1945 the restoration of the Republic of Austria was proclaimed, its territory and population were in a state of devastation and moral degradation.
The Austrian economy after the Second World War was very weak. The infrastructures were destroyed and the production of the industry was very limited (the loss of life and the damage to industry and transportation had decreased production to only one-third of its prewar level).
Heavy industry and banking were nationalized in 1946 and inflation was controlled by price and wage agreements. From 1945 to 1947, Austrian farmers were half as productive as in 1937. Many Austrian farmers preferred to sell their products on the black market at higher prices rather than at prices set by the government.
On the other hand, there was a considerable migration of capital and industry, from Vienna and Lower Austria, to the agricultural areas of the western states due to interference in the political and economic affairs of the military commandos within the occupied zone for the Soviet Union. This migration ultimately led to a significant change in the economic and social structure of the country.
Food aid from UNRRA (United Nations Rehabilitation and Aid Administration), which was a United Nations institution, was funded mainly by the United States, Canada and the United Kingdom. Its main function of assistance in the repatriation of displaced persons of World War II was vital for the Austrian population to move forward in 1946 and during the harsh winter of 1946-1947, which brought the Austrian economy to almost a state of paralysis.
Possibly Austria was the country most benefited by the European Recovery Program also known as the Marshall Plan launched in 1947, which was fundamental to the future Austrian prosperity.
Beneficiaries' States of the Marshall Plan
The Marshall Plan was a program through which the United States, to facilitate the reconstruction and recovery of Europe after World War II, provided economic aid to European countries in order to achieve the establishment of self-sufficient economies.
Austria received approximately one billion dollars from the European Recovery Program. More than half of these funds were invested in industrial and infrastructure projects, such as the Kaprun reservoir. This was the financial base for the economic takeoff of the country also known as the "Austrian economic miracle of 1950".
In 1952, the schilling was introduced as a stable currency and the economic growth of the following years was remarkable. Companies flourished and quality was improved in housing construction and infrastructure.
In 1960, the country became part of the European Free Trade Association (EFTA).
Tourism was another important growth factor, especially in the western provinces of the Alps.
This economic heyday ended with the oil crisis of the seventies, although it was not as affected as other countries
SOCIAL
In the postwar period, Austria did not integrate any military alliance, and hosted during the Cold War, political refugees from Poland, as well as allowing the transit of Soviet Jewish emigrants.