Second Republic & EU Accession (1945–present)

The Second Republic began under Allied occupation: Vienna was divided into four sectors like Berlin — memorably depicted in the film "The Third Man" (1949) with Orson Welles and the zither melody by Anton Karas. For ten years, Austrian politicians — foremost Foreign Minister Leopold Figl and Julius Raab — negotiated for freedom.

On May 15, 1955, the four occupying powers signed the Austrian State Treaty at the Belvedere Palace. Figl's legendary exclamation "Austria is free!" from the Belvedere balcony is one of the most emotional moments in Austrian history. In return, Austria committed to perpetual neutrality — following the Swiss model.

The post-war decades brought the economic miracle. The social partnership — the consensus-oriented cooperation of employers, unions, and the state — became the Austrian success model. Bruno Kreisky (SPÖ Chancellor 1970–1983) fundamentally modernized the country: criminal law reform, expansion of the welfare state, active neutrality policy. Vienna became the seat of international organizations: UNO, OSCE, OPEC, IAEA.

The Waldheim affair (1986) — Kurt Waldheim, former UN Secretary-General, was elected Federal President despite revealed Nazi past — forced Austria to confront its history. It was a painful but necessary process.

On January 1, 1995, Austria joined the European Union, after 66.6% of the population voted in favor in a referendum. In 1999, the Euro was introduced. Today, Austria is one of the wealthiest countries in the world, with a quality of life that regularly ranks Vienna as the most livable city on the planet.