Austrians
Historically, Austrians were regarded as ethnic Germans and viewed themselves as such. Austria was part of the Holy Roman Empire and the German Confederation until the Austro-Prussian war in 1866 which resulted in Prussia expelling Austria from the Confederation. Thus, when Germany was founded as a nation-state in 1871, Austria was not a part of it. In 1867, Austria was reformed into the Austro-Hungarian Empire. After the collapse of the Austro-Hungarian Empire in 1918 at the end of World War I, Austria was reduced to a rump state and adopted and briefly used the name the Republic of German-Austria ("Republik Deutschösterreich") in an attempt for union with the Republic of Germany, but was forbidden due to the Treaty of Saint-Germain-en-Laye (1919). The First Austrian Republic was founded in 1919. The Third Reich annexed Austria with the "Anschluss" in 1938.
History of Austria
On 20 October 1920, a plebiscite in the Austrian state of Carinthia was held in which the population chose to remain a part of Austria, rejecting the territorial claims of the Kingdom of Serbs, Croats and Slovenes to the state. The German-speaking parts of western Hungary, now christened Burgenland, joined Austria as a new state in 1921, with the exception of the city of Sopron, whose population decided in a referendum (which is sometimes considered by Austrians to have been rigged) to remain with Hungary. The area had been discussed as the site of a Slavic corridor uniting Czechoslovakia to Yugoslavia. This made Austria the only defeated country to acquire additional territory as part of border adjustments.
Despite the absence of reparations, Austria under the coalition suffered hyperinflation similar to that of Germany, destroying some of the financial assets of the middle and upper classes, and disrupting the economy. Adam Ferguson attributes hyperinflation to the existence of far too many people on the government payroll, failure to tax the working class, and numerous money losing government enterprises. The fascists blamed the left for the hyperinflation; Ferguson blames policies associated with the left. Massive riots ensued in Vienna in which the rioters demanded higher taxes on the rich and reduced subsidies to the poor. In response to the riots, the government increased taxes but failed to reduce subsidies.