Federal State of Austria
In the 1890s, Karl von Vogelsang and Vienna mayor Karl Lueger forged a conservative-clerical Christian Social Party that rejected liberal democracy. They viewed the poverty of the working class as a crisis requiring Catholic social teaching to resolve. The party agitated against the Austrian labour movement led by the Social Democratic Party of Austria for decades before taking power. Engelbert Dollfuss later adopted these views when he became Chancellor in 1932. He sought to replace parliamentary debate with a corporative form of government modeled on Italian fascism and Portugal's Estado Novo. Pope Pius XI issued the Quadragesimo anno encyclical in 1931 which provided theological backing for this shift away from class struggle. The regime elevated the Habsburg Monarchy as a golden age while alienating German culture through its strong Catholic identity. Schools were de-secularized to require religious education for Matura graduation exams. This ideological framework positioned Austrians as better Germans who embraced modest living for God and family.
On the 4th of March 1933, Social Democrat Karl Renner resigned as president of the Austrian Nationalrat after irregularities occurred during a voting process. Engelbert Dollfuss called this incident a self-elimination of parliament and forcibly prorogued the following meeting on the 15th of March using Vienna police forces. He seized emergency powers under the Wartime Economy Authority Law to issue decrees without legislative approval. President Wilhelm Miklas did not take any action to restore democracy despite the constitutional crisis. On the 26th of May 1933, Dollfuss banned the Communist Party and the Social Democratic Republikanischer Schutzbund paramilitary organization. He also outlawed the Austrian branch of the Nazi Party on the 19th of June. By the 20th of May 1933 he had established the Fatherland's Front as a unity party for an autonomous Christian state. The path to dictatorship was completed on the 1st of May 1934 when the Constitution was recast into a severely authoritarian document by a rump National Council. Direct parliamentary elections were abolished in favor of four non-elective corporatist councils. All governing power now rested in Dollfuss hands while deputies were nominated rather than elected.
The government attempted to enforce the ban of the Schutzbund at the Hotel Schiff in Linz on the 12th of February 1934 which sparked the Austrian Civil War. The revolt was suppressed with support from the Bundesheer and right-wing Heimwehr troops under Ernst Rüdiger Starhemberg. The conflict ended with the ban of the Social Democratic Party and trade unions across Austria. John Gunther wrote in 1940 that the state assaulted the rights of citizens in a fantastic manner during this period. Police raided 106,000 homes in Vienna and made 38,141 arrests of Nazis, social democrats, liberals and communists in 1934 alone. The regime continued to rule under what amounted to martial law until Dollfuss assassination on the 25th of July 1934 during the Nazi July Putsch. Hitler initially encouraged the coup but quickly denied involvement after it failed. Kurt Schuschnigg succeeded Dollfuss as education minister and took over leadership of the state. Support for the Nazi movement in Austria allegedly reached 75% in some areas despite the crackdown.
The Federal State pursued harsh deflationary policies to balance the currency while cutting spending drastically throughout the mid-1930s. High interest rates became the norm as the budget deficit was slashed from over 200 million shillings to less than 50 million. By 1936 only 50% of the unemployed were receiving unemployment benefits despite widespread hardship. Angus Maddison's estimates show unemployment peaked at 26% in 1933 and failed to fall under 20% until 1937. Real GDP collapsed and did not return to pre-1929 levels until 1937 when Germany had already recovered significantly. German unemployment peaked at 30% in 1932 and fell to less than 5% by 1937 showing a stark contrast. Ludwig von Mises served as economic advisor yet there is no convincing evidence his Laissez-faire policy was implemented. The regime aimed to reduce unnecessary spending and foster society that embraced a straightforward way of living aligned with Catholic belief in modesty for God and family.
Engelbert Dollfuss was assassinated on the 25th of July 1934 during the Nazi July Putsch which initially had encouragement from Hitler. The coup d'état was quickly suppressed after Italian intervention forced Mussolini to assemble an army corps of four divisions on the Austrian border. Mussolini threatened Hitler with war if Germany invaded Austria following the assassination attempt. Kurt Schuschnigg succeeded Dollfuss as education minister and took over leadership of the state. Tables turned after the Second Italo-Abyssinian War of 1935, 36 when Mussolini approached Hitler while internationally isolated. Schuschnigg tried to improve relations with Nazi Germany by amnestying several Austrian Nazis and accepting them into the Fatherland's Front. He had no chance to prevail against the axis of Berlin and Rome proclaimed by Mussolini on the 1st of November 1936. Support for the Nazi movement in Austria surpassed only that in Germany according to some estimates reaching 75% in certain areas.
Hitler declared his plans for an Austrian campaign in a meeting with Wehrmacht commanders in November 1937 according to the Hossbach Memorandum. Under mediation of German ambassador Franz von Papen, Schuschnigg traveled to Hitler's Berghof residence in Berchtesgaden on the 12th of February 1938. He was confronted with an ultimatum to readmit the Nazi Party and appoint Seyss-Inquart and Glaise-Horstenau ministers. Schuschnigg gave in after being impressed by OKW chief General Wilhelm Keitel and Seyss-Inquart became head of the interior ministry on the 16th of February. British ambassador Nevile Henderson stated on the 3rd of March 1938 that German claims to Austria were justified. Schuschnigg scheduled a nationwide referendum on the 13th of March as a last attempt to retain autonomy. He released Social Democratic leaders from prison and gained their support in return for dismantling the one-party state. Hitler reacted with mobilization of Wehrmacht troops at the border and demanded appointment of Seyss-Inquart as chancellor.
On the 11th of March Austrian Nazis stormed the Federal Chancellery and forced Schuschnigg to resign before Seyss-Inquart took over. President Miklas avoided signing the law by resigning immediately while Seyss-Inquart signed the Anschluss bill into law as acting President. Two days later Hitler proclaimed the accession of his homeland to the German Reich during a speech on Heldenplatz in Vienna. A highly dubious referendum organized by Josef Bürckel was held on the 10th of April ratifying the Anschluss with an implausible 99,73% of votes. Hundreds of thousands of undesirable Austrians totaling 18% of the population were removed from voter lists due to being Jewish or members of the Social Democratic party. The Wehrmacht crossed the border meeting no resistance after Seyss-Inquart was sworn in as successor by Miklas. Hitler had originally intended to retain Austria as a puppet state but changed his stance following enthusiastic support for his cause. Austria would not become independent again until 1955 when the Austrian State Treaty ended Allied occupation.
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Common questions
What was the Federal State of Austria and when did it exist?
The Federal State of Austria existed as a sovereign state between 1934 and 1938. It began on the 1st of May 1934 when the Constitution was recast into an authoritarian document and ended with the Anschluss in March 1938.
Who founded the Christian Social Party that shaped the Federal State of Austria?
Karl von Vogelsang and Vienna mayor Karl Lueger forged the conservative-clerical Christian Social Party in the 1890s. Engelbert Dollfuss later adopted these views when he became Chancellor in 1932 to establish the regime.
When did the Austrian Civil War occur during the Federal State of Austria period?
The government attempted to enforce the ban of the Schutzbund at the Hotel Schiff in Linz on the 12th of February 1934 which sparked the Austrian Civil War. The conflict ended with the ban of the Social Democratic Party and trade unions across Austria.
How many arrests were made by police in Vienna during the Federal State of Austria in 1934?
Police raided 106,000 homes in Vienna and made 38,141 arrests of Nazis, social democrats, liberals and communists in 1934 alone. This crackdown occurred while the regime ruled under what amounted to martial law until Dollfuss assassination on the 25th of July 1934.
Who succeeded Engelbert Dollfuss as leader of the Federal State of Austria after his assassination?
Kurt Schuschnigg succeeded Dollfuss as education minister and took over leadership of the state following the assassination on the 25th of July 1934. He later tried to improve relations with Nazi Germany before being forced out in March 1938.