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Relations between Austria and Germany are close, due to their shared history and language, with German being the official language of both of countries.
Modern-day Austria and Germany were united until 1866: their predecessors were part of the Holy Roman Empire and the German Confederation until the unification of German states under Prussia in 1871, which excluded Austria. In 1918 after the end of World War I, Austria renamed itself the Republic of German-Austria in an attempt for union with Germany but this was forbidden by the Treaty of Saint-Germain-en-Laye (1919). In 1938, the Third Reich annexed Austria in the Anschluss.
After Austria's entry into the European Union in 1995, both countries are member-states of the Schengen Agreement. Whereas Germany is a member nation of the NATO, Austria remains a partner to NATO in accordance with its constitution to maintain neutrality.
Throughout the Middle and Early-modern Ages, the Holy Roman Empire (HRE) encompassed all of the present territories of Germany, Austria, Bohemia (Czech Republic), Slovenia, northern Italy and the western part of modern-day Poland. The House of Habsburg became the ruling family of the Empire in 1440; the family would remain so until the dissolution of the Austrian Empire in 1919.
Austria has been the Habsburg's seat of power and the dominant state within the realm. The numerous Germanic states (within the HRE) constantly jostled for power and influence; they often warred against each other. In the 18th century, the Kingdom of Prussia rose as another influential power within the HRE; therefore, Prussia became Austria's main rival for dominance over their neighbouring German states. Prussia and Austria fought a series of wars over the province of Silesia (in modern-day southwestern Poland) between 1740 and 1763.