Austria (officially the Republic of Austria (German: Republik Osterreich), is a landlocked country of roughly 8.47 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Hungary and Slovakia to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The territory of Austria covers 83,855 square kilometres (32,377 sq mi) and has a temperate and alpine climate. Austria's terrain is highly mountainous due to the presence of the Alps; only 32% of the country is below 500 metres (1,640 ft), and its highest point is 3,798 metres (12,461 ft). The majority of the population speak local Austro-Bavarian dialects of German as their native language, and German in its standard form is the country's official language. Other local official languages are Burgenland Croatian, Hungarian and Slovene.
The origins of modern-day Austria date back to the time of the Habsburg dynasty when the vast majority of the country was a part of the Holy Roman Empire of the German Nation. During the 17th and 18th centuries, Austria became one of the great powers of Europe and, in response to the coronation of Napoleon I as the Emperor of the French, the Austrian Empire was officially proclaimed in 1804. In 1867, the empire was reformed into Austria-Hungary.
After the collapse of the Habsburg (Austro-Hungarian) Empire in 1918 at the end of World War I, Austria adopted and used the name the Republic of German-Austria ("Deutschosterreich", later "Osterreich") in an attempt for union with Germany, but was forbidden due to the Treaty of Saint Germain. The First Austrian Republic was established in 1919. In the 1938 Anschluss, Austria was occupied and annexed by Nazi Germany. This lasted until the end of World War II in 1945, after which Germany was occupied by the Allies and Austria's former democratic constitution was restored. In 1955, the Austrian State Treaty re-established Austria as a sovereign state, ending the occupation. In the same year, the Austrian Parliament created the Declaration of Neutrality which declared that the Second Austrian Republic would become permanently neutral.
Today, Austria is a parliamentary representative democracy comprising nine federal states. The capital and largest city, with a population exceeding 1.7 million, is Vienna. Austria is one of the richest countries in the world, with a nominal per capita GDP of $49,809 (2011 est.). The country has developed a high standard of living and in 2011 was ranked 19th in the world for its Human Development Index. Austria has been a member of the United Nations since 1955, joined the European Union in 1995, and is a founder of the OECD. Austria also signed the Schengen Agreement in 1995, and adopted the European currency, the euro, in 1999.
The German name for Austria, Osterreich, means "Eastern realm", it derives from the word Ostarrîchi, which first appears in the "Ostarrîchi document" of 996. This word is probably a translation of Medieval Latin Marchia orientalis into a local (Bavarian) dialect. It was a prefecture of Bavaria created in 976. The word "Austria" is a Latinisation of the German name and was first recorded in the 12th century.
Friedrich Heer, one of the most important Austrian historians in the 20th century, stated in his book Der Kampf um die osterreichische Identitat (The Struggle Over Austrian Identity), that the Germanic form Ostarrîchi was not a translation of the Latin word, but both resulted from a much older term originating in the Celtic languages of ancient Austria: more than 2,500 years ago, the major part of the actual country was called Norig by the Celtic population (Hallstatt culture); according to Heer, no- or nor- meant "east" or "eastern", whereas -rig is related to the modern German Reich, meaning "realm". Accordingly, Norig would essentially mean Ostarrîchi and Osterreich, thus Austria. The Celtic name was eventually Latinised to Noricum after the Romans conquered the area that encloses most of modern day Austria, in approximately 15 BC. Noricum later became a Roman province in the mid 1st century AD.
Settled in ancient times, the Central European land that is now Austria was occupied in pre-Roman times by various Celtic tribes. The Celtic kingdom of Noricum was later claimed by the Roman Empire and made a province. Present day Petronell-Carnuntum in Eastern Austria was an important army camp turned capital city in what became known as the Upper Pannonia province. Fifty thousand people called Carnuntum home for nearly 400 years.
After the fall of the Roman Empire the area was invaded by Bavarians, Slavs and Avars. The Slavic tribe of the Carantanians migrated into the Alps and established the realm of Carantania, which covered much of eastern and central Austrian territory. Charlemagne conquered the area in 788 AD, encouraged colonisation and introduced Christianity. As part of Eastern Francia, the core areas that now encompass Austria were bequeathed to the house of Babenberg. The area was known as the marchia Orientalis and was given to Leopold of Babenberg in 976.
The first record showing the name Austria is from 996 where it is written as Ostarrîchi, referring to the territory of the Babenberg March. In 1156 the Privilegium Minus elevated Austria to the status of a duchy. In 1192, the Babenbergs also acquired the Duchy of Styria. With the death of Frederick II in 1246, the line of the Babenbergs went extinct.
As a result Ottokar II of Bohemia effectively assumed control of the duchies of Austria, Styria and Carinthia. His reign came to an end with his defeat at Dürnkrut at the hands of Rudolph I of Germany in 1278. Thereafter, until World War I, Austria's history was largely that of its ruling dynasty, the Habsburgs.
In the 14th and 15th centuries, the Habsburgs began to accumulate other provinces in the vicinity of the Duchy of Austria. In 1438 Duke Albert V of Austria was chosen as the successor to his father-in-law, Emperor Sigismund. Although Albert himself only reigned for a year, henceforth every emperor of the Holy Roman Empire was a Habsburg, with only one exception.
The Austro-Hungarian Compromise of 1867, the Ausgleich, provided for a dual sovereignty, the Austrian Empire and the Kingdom of Hungary, under Franz Joseph I. The Austrian-Hungarian rule of this diverse empire included various Slavic groups including Croats, Czechs, Poles, Rusyns, Serbs, Slovaks, Slovenes and Ukrainians, as well as large Italian and Romanian communities.
As a result, ruling Austria–Hungary became increasingly difficult in an age of emerging nationalist movements, causing a high reliance on the use of an expanded secret police. Yet the government of Austria tried its best to be accommodating in some respects: The Reichsgesetzblatt, publishing the laws and ordinances of Cisleithania, was issued in eight languages, all national groups were entitled to schools in their own language and to the use of their mother tongue at state offices, for example.
20th century
The assassination of Archduke Franz Ferdinand in Sarajevo in 1914 by Bosnian Serb Gavrilo Princip was used by leading Austrian politicians and generals to persuade the emperor to declare war on Serbia, thereby risking and prompting the outbreak of World War I which led to the dissolution of the Austro-Hungarian Empire. Over one million Austro-Hungarian soldiers died in World War I.
On 21 October 1918, the elected German members of the Reichsrat (parliament of Imperial Austria) met in Vienna as the Provisional National Assembly for German Austria (Provisorische Nationalversammlung für Deutschosterreich). On 30 October the assembly founded the State of German Austria by appointing a government, called Staatsrat. This new government was invited by the emperor to take part in the decision on the planned armistice with Italy, but refrained from this business; this left the responsibility for the end of the war on 3 November 1918, solely to the emperor and his government. On 11 November the emperor, counseled by ministers of the old and the new government, declared he would not take part in state business any more; on 12 November German Austria, by law, declared itself to be a democratic republic and part of the new German republic. The constitution, renaming Staatsrat to Bundesregierung (federal government) and Nationalversammlung to Nationalrat (national council) was passed on 10 November 1920.
The Treaty of Saint-Germain of 1919 (for Hungary the Treaty of Trianon of 1920) confirmed and consolidated the new order of Central Europe which to a great part had been established in November 1918, creating new states and resizing others. Over 3-million German speaking Austrians found themselves living outside of the newborn Austrian Republic as minorities in the newly formed or enlarged respective states of Czechoslovakia, Yugoslavia, Hungary and Italy. This included the provinces of South Tyrol and German Bohemia, the latter of which would play a role in sparking WWII. The South Tyrol question would become a lingering problem between Austria and Italy until it was officially settled by the 1980s with a large degree of autonomy being granted by the Italian national government. Between 1918 and 1919 Austria was known as the State of German Austria (Staat Deutschosterreich). Not only did the Entente powers forbid German Austria to unite with Germany, they also rejected the name German Austria in the peace treaty to be signed; it was therefore changed to Republic of Austria in late 1919. The border between Austria and the Kingdom of Serbs, Croats, and Slovenes (later Yugoslavia) was finally settled with the Carinthian Plebiscite in October 1920 and allocated the major part of the territory of the former Austro-Hungarian Crownland of Carinthia to Austria. This set the border on the Karawanken mountain range, with a lot of Slovenes remaining in Austria.
Austria is the 12th richest country in the world in terms of GDP (Gross domestic product) per capita, has a well-developed social market economy, and a high standard of living. Until the 1980s, many of Austria's largest industry firms were nationalised; in recent years, however, privatisation has reduced state holdings to a level comparable to other European economies. Labour movements are particularly strong in Austria and have large influence on labour politics. Next to a highly developed industry, international tourism is the most important part of the national economy.