Austrian history is marked by its central role in European politics and culture. The region was part of the Holy Roman Empire for centuries, and in the late 13th century, the Habsburg dynasty began to rise, establishing Austria as a significant power. The Austro-Hungarian Empire was formed in 1867, uniting various ethnic groups under a single monarchy until its dissolution after World War I in 1918. Following the war, Austria became a republic, facing economic challenges and political instability. The rise of Nazism led to the annexation of Austria by Germany in 1938. After World War II, Austria regained independence and adopted a policy of neutrality, becoming a member of the European Union in 1995.