1922: The End of the First Government of an Independent Federal Chancellor

In the years following the First World War, two themes shaped politics: first, the unclear relationship of the new small state of Austria to the victorious powers and the neighbouring states; second, what could be done to counter the rise of inflation and poverty. Both topics brought political debates to a boiling point at the end of 1921 and into 1922: the government had entered into an agreement with Czechoslovakia, which brought a much-needed credit – in return, however, Austria had to definitively give up its territorial claims against Czechoslovakia. That Chancellor Schober advocated rapprochement with this neighbouring state and, moreover, had also strengthened their economic ties, represented a breach of taboo for the German Nationals. They thus ceased their support for the government, which consisted primarily of non-party experts. Together with the Social Democratic Party, they now could have overthrown them at any time.

The chancellor pre-empted such an event by resigning on January 26, 1922. At the same time, however, he managed to win the votes of a small sub-party of the German Nationals in Parliament, the German Austrian Farmers Party. Just one day after his resignation and with this narrow majority, Parliament elected a new government with the same chancellor and similar ministers. The representatives of the German Austrian Farmers Party declared their support for the new cabinet by stating that they were dealing with a “government crisis” in a “moment in which the country was at the edge of ruin”. The speaker was alluding to the delicate financial and general economic situation of the young state. The government only lasted a few months until it was replaced in May of 1922 by the first government under the Catholic priest Ignaz Seipel.