Even after being destroyed during WW2 and split in half for 45 years, Germany is still Europes largest economy. So what if the Allies agreed that Germany is too dangerous to be left alive and decided that Baden-Württemberg and Bavaria will be merged with Austria? This idea isn't even that unlikely considering Otto von Habsburg, the last crown prince of Austria-Hungary, was a staunch anti Nazi unlike Willy II who only was fed up with the Nazis when he realized they won't reinstate the monarchy. Otto denounced the Nazis from the very beginning and opposed the Anschluss of Austria. According to Wikipedia "He obtained the support of Winston Churchill for a conservative "Danube Federation", in effect a restoration of Austria-Hungary, but Joseph Stalin put an end to these plans.". Stalin not agreeing to it is understandable considering the Danube Federation Otto suggested would have consisted of Austria, Hungary and Czechia. Of course Stalin wouldn't want to give up of his new conquests. But I am convinced Stalin wouldn't have a problem if the rest of Germany that isn't under Soviet control would be weakened by giving Baden-Württemberg and Bavaria to Austria. Furthermore, it would also make sense in a cultural point of view. Austria, Bavaria and Baden-Württemberg are all south German and they are very culturally alike to one another. It would also make the population of the resulting 3 German states somewhat comparable with West Germany having 35.3 million inhabitants, the Danube Federation having 22.5 million inhabitants and East Germany having 18.3 million inhabitants (1950 numbers). How would this change history? Assuming the Danube Federation is neutral as Austria IOTL, would they still join the EU (if it still forms) or would they rather be part of the EEA or have a Switzerland style relationship with the EU? Also, how would Americans and the world see Germans? The current stereotype of Germans as lederhose wearing, beer drinking, pretzel eating people originated from American troops stationed in Bavaria.