Federal State of Austria
The Federal State of Austria (Austrian German: Bundesstaat Österreich; colloquially known as the "Ständestaat") was a continuation of the First Austrian Republic between 1934 and 1938 when it was a one-party state led by the conservative, nationalist, and corporatist Fatherland Front. The Ständestaat concept, derived from the notion of Stände ("estates" or "corporations"), was advocated by leading regime politicians such as Engelbert Dollfuss and Kurt Schuschnigg. The result was an authoritarian government based on a mix of Italian Fascist and conservative Catholic influences.
This article is about the sovereign state between 1934 and 1938. For the federated states of current Austria, see States of Austria.
Federal State of AustriaBundesstaat Österreich (German)
1 May 1934
25 July 1934
12 February 1938
13 March 1938
It ended in March 1938 with the Anschluss (the German annexation of Austria). Austria would not become an independent country again until 1955, when the Austrian State Treaty ended the Allied occupation of Austria.
Ideology[edit]
The Federal State of Austria glorified the history of Austria. The Habsburg Monarchy was elevated as a time of greatness in Austrian history. The Catholic Church played a large role in the nation's definition of Austrian history and identity, which served to alienate German culture. Unlike Hitler's comparatively secular regime, the Catholic Church was given a prominent voice in a variety of issues. In education, the state de-secularized schools, requiring religious education in order to complete the Matura graduation exams. According to this ideology, Austrians were "better Germans".[4] In keeping with the regime's Catholicism, the regime elevated the non-communist and non-capitalist teachings of Papal Encyclicals, most prominently Quadragesimo anno of Pope Pius XI.
Despite its nominal embrace of corporatism and shunning of liberal capitalism, the Federal State pursued a remarkably capitalistic monetary policy, similar to Nazi Germany and Fascist Italy. Vienna School economist Ludwig von Mises, who had collaborated with Dollfuss before the coup, was made chairman of the Austrian Chamber of Commerce, and with the guidance of Mises and other economists, the Federal State pursued a vigorous policy of austerity in reaction to the Great Depression.[5]
The Federal State pursued harsh deflationary policies to balance the currency. It also cut spending drastically, and high interest rates were the norm. The budget deficit was slashed from over 200 million shillings to less than 50 million.[6] By 1936, only 50% of the unemployed were receiving unemployment benefits. These policies coincided with a catastrophic economic contraction. According to Angus Maddison's estimates, unemployment peaked at 26% in 1933, failing to fall under 20% until 1937.[7] This can be contrasted with German unemployment, which peaked at 30% in 1932 and had fallen to less than 5% by 1937. Additionally, real GDP collapsed, not returning to pre-1929 levels until 1937.
Whether the Federal State could be considered genuinely fascist is debatable. Although it was authoritarian in nature and used fascist-like symbols, it never achieved broad support among Austrians. Its most prominent policy was an embrace of Catholicism, and its economic and social policies bear an only passing resemblance to those of Fascist Italy and Nazi Germany.
Anschluss[edit]
According to the Hossbach Memorandum, Hitler in November 1937 declared his plans for an Austrian campaign in a meeting with Wehrmacht commanders. Under the mediation of the German ambassador Franz von Papen, Schuschnigg on 12 February 1938 traveled to Hitler's Berghof residence in Berchtesgaden, only to be confronted with an ultimatum to readmit the Nazi Party and to appoint Seyss-Inquart and Glaise-Horstenau ministers of the Austrian cabinet. Schuschnigg, impressed by the presence of OKW chief General Wilhelm Keitel, gave in and on 16 February Seyss-Inquart became head of the strategically important Austrian interior ministry.
After the British ambassador to Berlin, Nevile Henderson on 3 March 1938 had stated that the German claims to Austria were justified, Schuschnigg started a last attempt to retain Austrian autonomy by scheduling a nationwide referendum on 13 March. As part of his effort to ensure victory, he released the Social Democratic leaders from prison and gained their support in return for dismantling the one-party state and legalizing the socialist trade unions. Hitler reacted with the mobilization of Wehrmacht troops at the Austrian border and demanded the appointment of Seyss-Inquart as Austrian chancellor. On 11 March Austrian Nazis stormed the Federal Chancellery and forced Schuschnigg to resign. Seyss-Inquart was sworn in as his successor by Miklas and the next day Wehrmacht troops crossed the border meeting no resistance.
Hitler had originally intended to retain Austria as a puppet state headed by Seyss-Inquart. However, the enthusiastic support for Hitler led him to change his stance and support a full Anschluss between Austria and Nazi Germany. On 13 March Seyss-Inquart formally decreed the Anschluss, though President Miklas avoided signing the law by resigning immediately, only for Seyss-Inquart to take over as acting President and sign the Anschluss bill into law. Two days later in his speech at the Vienna Heldenplatz, Hitler proclaimed the "accession of my homeland to the German Reich". A highly dubious referendum was held on 10 April, ratifying the Anschluss with an implausible 99,73% of votes.