Hitler suffered a setback in July 1934 when his ambition of an Anschluss (union) between Germany and Austria met with constraints. 

The Austrian Nazis were encouraged by Hitler to revolt and murder the Chancellor, Engelbert Dollfuss, who had been supported by Mussolini. 

When Mussolini advanced his troops to the Austrian frontiers and warned the Germans off, the revolt subsided. Hitler realised that Germany was not strong enough to force the concern. 

Hitler also denied responsibility for the actions of the Austrian Nazis’. 

When Hitler saw that his intervention in Spain had not been resisted by the powers, he came forward to fulfill his plan of uniting of Austria with Germany. Thus Nazi agitation was encouraged within Austria and the Austrian Chancellor was compelled to agree to conduct foreign affairs at Germany’s direction and also to appoint a Nazi minister. . 

Finally on 14 March, 1938, Hitler poured troops into Austria and incorporated Austria within German Empire. In this way ‘Anschluss’ was complete. The annexation of Austria was a prelude to the annexation of Czechoslovakia in near future.