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the centre 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 EU in
1995 have altered the meaning of this neutrality. A prosperous,
democratic country, Austria entered the EU Economic and Monetary
Union in 1999.
Location: Central Europe, north of Italy and Slovenia.
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