The 1955 Austrian State Treaty ended the four-power occupation and recognized Austria as an independent and sovereign state. In October 1955, the Federal Assembly passed a constitutional law in which "Austria declares of her own free will her perpetual neutrality." The second section of this law stated that "in all future times Austria will not join any military alliances and will not permit the establishment of any foreign military bases on her territory." Since then, Austria has shaped its foreign policy on the basis of neutrality.
In recent years, however, Austria has begun to reassess its definition of neutrality, granting overflight rights for the UN-sanctioned action against Iraq in 1991, and, since 1995, contemplating participation in the EU's evolving security structure. Also in 1995, it joined the Partnership for Peace, and subsequently participated in peacekeeping missions in Bosnia. Discussion of possible Austrian NATO membership intensified during 1996. ÖVP and the Team Stronach aim at moving closer to NATO or a European defense arrangement. SPÖ and FPÖ, in turn, believe continued neutrality is the cornerstone of Austria's foreign policy, and a majority of the population generally supports this stance.
In February 2000, Austria's foreign relations cooled down when the ÖVP formed a coalition with the FPÖ after the 1999 election. European governments imposed diplomatic sanctions, and the United States called home its ambassador. The diplomatic sanctions were lifted in September 2000, after a three-member panel assessed human rights and political life in Austria. In November 2000, the United States and Austria normalized their relations.