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There is more Magyar, Slavic, Hunnish admixtures in Austria, whereas Germany is more "Teutonic". Austria is more connected to southern Germany and to the High German speech. Hitler an Austrian by excellence, was more similar to the Bavarian, he felt closer to Bavaria than to others regions of Germany.
Someone said here somewhere (was it Manolón or Pizzaro ?) that Germans are basically still tribal people which would include Austrians.
Germany as a country is still new, and for many people it is still more important to which region/dialect region (or tribe) they belong than that they are Germans, so asking for differences between Germans and Austrians is a difficult question. People from South Germany often feel they have more in common with Austrians and German Swiss than with northerners. It's the common dialect of the various tribes which unites, maybe less so the nationality.
Here's a really good map that illustrates the bolded point, showing the linguistic distribution of Bavarians and Swabians across national boundaries, along with historic migration routes.
One could also make a thread about "Differences and Similarities between Australian Australians and New Zealand Australians".
Despite speaking the same language, they are not the same country, and not the same people either for that matter. Austrians are Austrians and Germans are Germans. And yes, there is differences, even northern Germans are culturally different from southern Germans. Not sure about any significant differences between Austrians and southern Germans, but I'm sure there is.
Would be interesting to compare Swiss Germans with Germans or Austrians as well.
Swiss Germans are mostly Swabians, except for an enclave of Bavarians in the far east of the country.
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