BERLIN — Austria will remain in the European Sky Shield Initiative and increase its defense expenditures to 2% of the country’s GDP annually under a new government, the incoming coalition announced on Thursday.
Previously it had appeared as though Austria would exit the German-founded Sky Shield air defense project under a far-right government. The negotiations between the extreme-right Freedom Party and the conservative People’s Party have since failed, paving the way for a more moderate coalition. Elections were held in September of 2024.
On Thursday, the incoming government, led by the conservatives and with participation of the social democrats and the economic liberals, announced that they had arrived at a coalition agreement, which includes a detailed plan of proposed policies and some appointments.
The three-way coalition – a historic first in Austrian history – is expected to present a relative continuation of the preceding Austrian government, which was made up of the conservative and green parties. This also applies to defense policy, where most of the coalition’s positions reflect those of the previous government. The chancellorship will remain with the conservative people’s party though it was unclear at the time of writing whether the defense ministry, too, would remain the People’s Party’s domain.
Under the previous government and defense minister Klaudia Tanner, Austria had decided to join the European Sky Shield Initiative, which to date counts 23 countries stretching in a continuous bloc from Scandinavia to Turkey. The military initiative seeks to coordinate the procurement and interoperability of air-defense systems among its members to protect against the threat of Russian missiles and drones.
The far-right and Russia-friendly freedom party had made exiting Sky Shield a campaign promise, claiming that it is not compatible with Austria’s constitutionally enshrined “perpetual neutrality.” With the euroskeptic party in charge, it was also expected that Austria would be a stumbling block for consensus in the European Union and would drop or significantly reduce its support from Ukraine on the international stage.
In accordance with its neutrality policy, Austria does not send weapons to Kyiv – but it does support the country in the diplomatic arena and send non-lethal aid.
The government that ended up being formed, however, reaffirmed its support for Ukraine and called out Russia for its invasion of its smaller neighbor in their coalition document.
In a trend also started by the Ukraine war, Austria will continue to invest in its military, sticking to the “construction plan 2023+,” which seeks to invest around €17 billion ($17.7 billion) in additional funds into its armed forces by 2032. A novelty, however, is the mention of a specific goal of 2% of the country’s GDP going toward the military by the same year. Although the same number as the goal for military spending among NATO members, Austria remains outside the alliance.
Additionally, Vienna intends to set up a so-called standby force to “be able to respond quickly to unexpected threats.” It is supposed to be manned by a combination of professional soldiers and parts of the country’s militia. Austria maintains mandatory conscription for all men at age 18.
Another major piece of news is expected in the near future, with the government reiterating their intention of phasing out the country’s fleet of 15 Eurofighter Typhoons which currently form the backbone of the Alpine republic’s air force.
A “decision of principle” is to be taken “soon” on this question, officials said. Austria intends to procure 36 new jets with both the American F-35 and the Swedish JAS-39 Gripen reportedly being in the running. The Austrian air force has in the past been a significant operator of Saab aircraft, flying a custom-made variant of the Saab 105 until recently, when it was retired in favor of the Italian M-346. Austria also operated the Saab Gripen, Tunnan, B17A and Safir airframes in the past.
Linus Höller is a Europe correspondent for Defense News. He covers international security and military developments across the continent. Linus holds a degree in journalism, political science and international studies, and is currently pursuing a master’s in nonproliferation and terrorism studies.
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