Austrian Nationalization from the Potsdam Agreements to the Cold War

Towards the end of the Second World War, after Austria had regained its independence from the German Reich, industry as well as the electricity sector were confronted with unclear ownership structures, related Allied claims, and high capital requirements for reconstruction. The three governing parties agreed that they wanted to master this challenge by nationalizing the companies concerned. In the Western Occupation Zones, this happened in 1946 and 1947. In the Soviet Zone, however, the companies were confiscated and transferred into newly founded enterprises. Thus, the nationalization acts only became fully effective once the State Treaty had been signed in 1955. Starting in the 1970s, nationalized industry was no longer able to cope with changes to the economic structures and the onset of globalization. As a result, these industries began to be privatized in the mid-1980s.

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