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After World War II, Austria re-emerged as an independent country, and in April 1945, Karl Renner, an elder statesman, established a provisional government. This government, including representatives from the Socialist, Conservative, and Communist parties, was quickly recognized by the Allies, who treated Austria as a liberated rather than defeated nation. By May 9, 1945, Austria was occupied by the Allies and divided into zones controlled by American, British, French, and Soviet forces. Vienna itself was similarly divided, with a central International Zone. Although the Austrian government was under Allied oversight, it managed limited foreign relations, joining initiatives such as the Danube Commission in 1948.
Occupation zones in Austria. © Master Uegly
The Second Republic was marked by political stability, contrasting sharply with the divisive First Republic era. The Austrian People’s Party (ÖVP) and the Social Democratic Party (SPÖ) formed a coalition government until 1966, with the Communist Party (KPÖ) remaining briefly in the coalition until 1950. Austria received significant assistance from the Marshall Plan beginning in 1948, helping with economic recovery, though the country’s neutrality limited its eligibility for American military aid. American influence also brought about significant cultural and institutional shifts, modernizing Austria’s media, education, and healthcare systems.
In 1955, the Austrian State Treaty was signed, officially ending the occupation and declaring Austria’s neutrality. This principle of neutrality was enshrined in Austria’s constitution on October 26, 1955, which remains celebrated as Austrian National Day. Political life in the Second Republic became characterized by "Proporz," a power-sharing system where public offices and representation were proportionately divided between the SPÖ and ÖVP. This consensual governance style, along with mandatory interest group representation, became a staple of Austrian politics, facilitating broad-based decision-making and a stable democratic framework that continues to characterize Austrian governance today.