The Republic of German-Austria (Or Republik Deutschösterreich or Deutsch-Österreich) was formed in 1918 after the abdication of the Emperor Carl I with the Social Democrat Karl Renner as Chancellor of Austria. And as one of the defeated powers of WWI Austria was forced to signed the Treaty of Saint-Germain-en-Laye. The territory of Austria was greatly reduced to 25% of its original territory, forced to reduce the army to 30 000 and to pay war reparations. Ethnic Germans were separated from Austrian lands as a result. To make it worse, the newly landlocked Austria lost their ability to trade via the sea, causing their economic situation to collapse. Austria also became dependent on its neighbors for trade, particularly the newly formed Weimar Republic to the north.
In 1927, during a political clash in Schattendorf, an old man and a child were shot and killed by Heimwehr. On 14 July 1927 the shooters were acquitted and left-wing supporters began a massive protest during which the Ministry of Justice building was burned. To restore order police and army shot and killed 89 people and injured 600. The huge protest is known as the July Revolt of 1927. Social Democrats called for a general strike which lasted four days.
After the 1927 events the conservative elements became stronger and violence in Austria continued to escalate until the early 1930s when Engelbert Dollfuss became Chancellor.
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Austria has 5 civilian factories and 3 military factories in Lower Austria, 3 civilian factories in Upper Austria and 1 civilian factories in Tyrol. It has 3 more building slots each in Upper Austria and Tyrol.
Austria's Oil is in Lower Austria while its other resources are in Upper Austria.
Austria is an extremely difficult nation to play. The Germans are on your border, and will attempt to annex you. You have until around 1937-1938 to prepare. Focus on the industry branch of the focus tree, getting as many military factories as possible. You should then focus on the political branch. Going democratic or communist is ideal, so you can join a major faction when the Germans invade. Remaining fascist can get you manpower though, if you decide to remain fascist, ally Italy if possible, or Japan, though allying with japan is less rewarding. You should make a lot of weaker infantry divisions, instead of trying to get ideal stats. This tends to make the AI hesitant to attack your lines. When the Germans attack you will mainly want to hold out in the mountains. If you are not playing iron man, you should save before the Germans press for Anschluss, because if the Germans make it through the mountains, they will have a stronger attack. Once you make your defensive line, you can just wait until the German AI overwhelms itself. Joining the Allies or Comintern will speed this up. Once you defeat the Germans, your army should be big enough to establish dominance in central Europe.