What if the Austro-Hungarian Empire was reborn?
All it took was one man. His name was Reinhard Lade. Lade was born in a small town outside Vienna, Austria in 1885. The world events progressed as normal, he never fought in WW1 due to a broken leg and further complications from that. Miraculously, after the war he recovered quite quickly and was able to walk again. He lived an average middle class life until that of the great depression. Broken on the streets, laying on the streets feeling so beaten down, he knew that he had to change the world in one way or another. He bought into ideas of National Socialism, however he had wanted to create more of a human face. He never viewed the Jews as subhuman untermensch, he saw the leading governments of the former Austro-Hungarian Empire as the main problem in society.
He lead a march on Vienna with disgraced WW1 veterans and various other supporters, rallying around the cause known as the National Re-Union Party (Nationale Wiedervereinigungspartei). He was sort of like Adolf Hitler in a way, he spoke loudly, powerfully and was able to get many to his cause. The majority of which was based around the re-union of the Austro-Hungarian Empire and to stand against the west and communist east. He seized power on February 23rd, 1930. The mobs of his supporters had taken down the government. A civil war had began, however the civil war was won quite quickly by his supporters and the Austrian Empire was re-born. In a move like no other, he crowned himself Emperor of Austria. While as controversial as it was, nobody payed much mind. The people were
starving and
desperate. He saw the previous monarchy as corrupt and in-ept, and he was going to be the one to lead Austria into a greater future.
While light elements of National Socialism were in effect, they had never planned to round up and slaughter the jews, unlike the Germans in the North. Adolf Hitler became leader of Germany a year earlier in our timeline, at that time Lade and Hitler were allies. Soon Mussolini, Lade, and Hitler formed the Axis powers. However secretly, Hitler was planning on taking down his Austrian ally, as he was far more radical than Lade ever was. The Germans re-arm the Rhineland, the Austrians boost up their military which makes the French and British quite nervous and angry. The 'Austrian' question was always in the minds of both Germans and Austrians, however Lade would never submit to the Germans. Lade was rather friendly with the Italians, this caused tension between the members of the Axis powers. Soon enough one of Lade's big goals would be achieved. In 1936 Austria and Hungary united to form one Empire. They had been in talks and were able to form a fair, equal union. In 1938, a year earlier than in our world, the German-Soviet invasion of Poland would begin the Second World War.
The Austrians had quickly blitzed through Slovakia, while the Germans had taken Czechia, splitting Czechoslovakia in 2. The events of the war would proceed similarly to our timeline until 1943. Finland had officially joined the Axis powers and participated in the invasion of the Soviet Union. The battle of Stalingrad resulted in an Axis victory, however that was soon to change and didn't really matter because of what was about to happen next. At the time, Lade and Mussolini were in secret talks with the allies. There is no way either of them could have stood to be under German hegemony. In what is called the London Affair, both Lade and Mussolini agreed to join the allies in exchange for minor concessions after the war.
Later in the year in 1943, both the Austrians and Italians switched sides to join the allies. The Austrians officially dropped antisemitism as part of their ideology. As a result, a few radical Austrian leaders attempted a coup against the Emperor but were assassinated before that could occur. This caused a second civil war within Austria, allowing the Soviets and other Western allies to make great gains into Germany. However, the Austrians defeated their Nazi enemies within Austrian borders, the civil war being between the more moderate Austrian fascist ruling elite and the more radical Austrian National Socialists. The war ended in Europe a year earlier in our world, the Austrians liberating the concentration camps and taking a hold of a large area in Southern Germany which would soon become the Austrian occupation zone, alongside the American Occupation zone.
Various other events have occurred throughout and during the war, however Adolf Hitler, Heinrich Himmler, and other various members of the Nazi elite were captured by an Austrian patrol and jailed, to be tried at the Nuremburg trials in 1944.
A major important difference is, despite the Austro-Hungarian Empire's dislike of the jews, many German scientists would have went to them after the war. The Austro-Hungarians wanting to gain an edge in the future conflicts. They would have developed the Nuclear Bomb, but later than it was developed in our timeline, leading the Americans and allies to commit to Operation Downfall instead of the Atomic bombings which resulted in hundreds of thousands more American causalities than in our timeline, a divided Japan between a capitalist South and communist North, and an entirely communist Korea.
The Nuremburg trials would have occurred like our timeline, however with an Austro-Hungarian presence and the trial of Heinrich Himmler and Adolf Hitler who were shot to death (and rightly so) by an Austrian firing squad. Germany was occupied from 1944 to 1949 by the western allies. When the occupation was up, the Soviets had established the Democratic Republic of Germany in the East, with no Berlin airlift in this world due to alternate events. Western Germany as an ally of the west, while Bavaria was directly annexed into the Austro-Hungarian Empire. Czechia had already been annexed before the surrender of Germany to the Allied Powers.
The Austro-Hungarians and their allies formed a neutral bloc, this strangely enough, included Switzerland. This bloc was called the Iron Pact (I don't know about that name though...). One of the first events in the cold war was the protests in Western Germany. The Germans wanted to join the side of the Austro-Hungarians because of their German heritage and generous support throughout the struggles of occupation and starvation after the war. Eventually the protests had erupted into Riots, and the Western allies were forced to back out due to the pressure from the Austro-Hungarians and threats. This would lead them astray from the former allied powers. Western Germany joined the neutral bloc and became subtly influenced by light fascist and monarchist ideals, resulting in a government change.
The cold war blocs were in place, and the cold war hysteria would be with an added twist - the existence of a 3rd side.
Unlike Hitler, Lade was in rather perfect health and never did drugs so he lived a long life until 1970 where he died peacefully in his sleep. Mussolini had passed away in 1961. Italy would hold onto Libya, but gave up their other colonies as a result of pressure from the west.
History happens.
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This is a rather bad map to be honest, should give you some ideas of what to imagine in this world. I'm no detailed writer / alternate historian so keep that in mind.
The Helsinki Pact (in red) are the communists.
The Iron Pact (in light purple) are the Austro-Hungarians and their allies.
The Global Treaty Organisation (in blue) are the Americans and their allies.