Austria is a Federal Republic consisting of 9 federal states. Each of these have a separate parliament and government. Vienna is the federal capital and the seat of the supreme federal authorities.
Since 1995, Austria is a member state of the European Union. Legislative power is exercised by the Federal Parliament, consisting of two legislative bodies: the Lower House-National Assembly (Nationalrat), with 183 members and 5-year term, and the Upper House-Federal Council (Bundesrat), with 62 members elected by local parliaments.
In terms of economy, Austria is the 14th richest country in the world, according to the World Bank, showing GDP growth of 1.5% in 2019, while the budget was in 2018, for the first time since 1954, in surplus, rising to 0.2% of GDP. The public debt decreased in 2019 to 70% of GDP, whereas in 2021 the economy recovered after the COVID-19 period, recording a GDP increase of 4.5% and an additional 5% increase was achieved for the year 2022. Along with the highly developed industry, tourism remains the most important sector of the economy, and corresponds to almost 9% of the Austrian GDP. The top destinations of Austria’s exports, in order, are Germany (30.1%), Italy (6.1%), the United States, Switzerland and Hungary. The countries of origin of the imports, in order, are Germany (36.8%), Italy, China, Switzerland and the Czech Republic.
The primary objective of Austria’s foreign policy is to maintain Austria’s relations with all countries in the world and to represent Austria’s interests in all international and regional organizations of which Austria is a member. Since its accession to the EU (1995), Austria has also participated in the European Union’s Common Foreign and Security Policy (CFSP). Austria can thus not only actively shape the EU’s foreign policy, but also deepen its relations with many non-European states, e.g., in Africa, Latin America and Asia, through the CFSP.
As a NATO partner, Austria has participated in various ways in security policy activities for nearly three decades. The Republic of Austria has been a member of the NATO Partnership for Peace (PfP) since 1995 and has been a member of the Euro-Atlantic Partnership Council (EAPC) – the dialogue and consultation forum between NATO and the Euro-Atlantic partner states – since 1997. In April 2022, the Individually-Tailored Partnership Program (ITPP) was adopted, which strengthens the political dialogue and enhances cooperation in additional fields (resilience, climate change, security). Cooperating with NATO allows Austria to deal with important security issues in a transatlantic setting as well as further develop the Austrian armed forces.
In the 21st century, Austria’s security policy, therefore, encompasses all of the measures at national, European and international levels intended to achieve the following objectives: actively working towards shaping a situation that is conducive to the security of Austria its population and the European Union (EU) as a whole, preventing threats from emerging or taking effect, protecting against and coping with threats. To that end, Austrian military expenditure for 2021 is 0,8% of GDP, according the most recent open-source data from Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.
Austria’s defense policy is an integral component of its national Comprehensive Security Provision. It works in cooperation with foreign policy and internal security policy in order to (1) guarantee full state sovereignty and integrity, (2) protect the constitutional institutions and the critical infrastructure, (3) protect the population, also in the area of disaster relief, (4) support the national capacity to act in strategic crisis situations, (5) contribute to the management of crises as an expression of solidarity and (6) make a military contribution to EU security endeavors in the spirit of solidarity.
Austria crafts its security policy predominantly within the UN, the EU, the OSCE, in its partnerships with NATO and within the Council of Europe. Moreover, it collaborates with regional partners and other stakeholders where appropriate. Austria’s foreign deployments, which have been conducted since 1960, and its active role in international crisis management, constitute pivotal instruments in security policy operations. In terms of safety and security, the Federal army uses the following narrative as a mission statement: The federal army protects the inhabitants of Austria, from attacks from outside, when internal security is threatened and in the event of natural disasters or major accidents. The army also makes its contribution to security and peace abroad.
In the information instrument of power, the Österreich Institut since 1997, whose rights are represented by the Austrian Foreign Ministry, provides German language courses, promotes cultural exchange abroad and offers insight into Austrian life. Moreover, Austria has created a Development Cooperation structure and with its operational unit, the Austrian Development Agency (ADA), is working on three major concerns: combating poverty, promoting peace and protecting the environment. To that end, ADA currently funds projects and programs with a total volume of more than 570 million euros to improve living conditions in developing countries.
Concerning global issues, the Austrian position is that, the course of globalization and its effects on our climate, the environment, energy and water supply, but also on mobility or combating poverty and the protection of human rights are some of the major challenges in international relations of the 21st century. The ever-increasing interdependence of states makes it imperative to collectively respond to the current global questions.
Special interest is placed on affordable and environmentally friendly energy solutions to support the future development of our technologically advanced societies and on the migration issue in its various forms. Last but not least, one can point out the Austrian international cultural policy as a soft power tool, where the interest lies in the promotion and networking of Austrian artists and scientists abroad, in a worldwide network that creates opportunities for international cooperation, future collaborations and builds bridges.
Regarding energy security, Austria tries to diversify its dependence on Russian gas after the Russian invasion of Ukraine, but its stance is criticized as there are certain indicators that this effort is not a priority or to put it in another context a realistic possibility any time soon. Austrian officials claim that an immediate cutoff would lead to economic ruin and mass unemployment while as a landlocked country, Austria, unlike Germany, Italy or Greece, cannot simply build terminals for ships to carry in liquefied natural gas.
In 1968, Austria became the first Western European country to import gas from the Soviet Union, and its dependence on Russian energy increased in the following decades. Before the Russian invasion of Ukraine, 80% of Austria’s natural gas came from Russia. In this context, the Economist in a criticism effort ranked Austria second on the list of “Vladimir Putin’s useful idiots” in July 23, mainly because of the Alpine country’s continued heavy dependence on Russian gas.
On Nov 2022, in a bid to reduce dependence on Russian gas, Austria, Croatia and the German region of Bavaria announced an energy-political partnership during a visit by Austrian Chancellor Karl Nehammer and Bavarian Minister-President Markus Söder to Croatia’s liquefied natural gas (LNG) terminal in the northern Adriatic. Moreover, another project on this direction is the BRUA pipeline (Bulgaria-Romania-Hungary-Austria), that will mark the connecting of the Eastern and Central Europe with the Caspian natural gas fields Sea through the Greek interest TAP pipeline.
Also, the connection of the BRUA pipeline, with major projects f.a. of Greek interest, through the Vertical Corridor, such as the IGB, as well as the prospect of LNG supply through Greece’s terminals in Revythoussa and Alexandroupoli (under construction). The question of whether the government in Vienna is working fast enough is as much a political problem as it is a logistical and economic one.
At this point it has to be mentioned that Austria, which was annexed by Nazi Germany in the run-up to World War II, declared neutrality after the war under pressure from Western allies and the Soviet Union. It sought a role as a mediator between East and West and developed ties with Moscow during and after the Cold War. Until today Austria is a neutral country, a principle written in its constitution, but as the Austrian Foreign Minister Alexander Schallenberg stated, never been neutral when it comes to values.
Austria’s neutrality is repeatedly a topic of discussion, with opposition parties and experts criticizing the government for its reluctance and recently calling on it to reevaluate its position, especially after Sweden and Finland’s bid to join NATO. Neutrality has also allowed Austria to become an important stage for international diplomacy, underscoring the benefits of not taking sides. In the sixties, OPEC moved its headquarters there, followed in 1979 by the United Nations, which made Vienna its third headquarters. The Organization for Security and Cooperation in Europe settled there in 1993.
Recently, voices like the one of Mr. Werner Fasslabend, a former Austrian defense minister from the conservative People’s Party, are arguing in favor of the country renouncing neutrality and joining NATO. With the end of Cold War and Austria’s accession to the EU, Austrian neutrality has “lost its function,” Mr. Fasslabend supports. Particularly, as a NATO member, Austria would “be in a better position to shape European security policy and will gain greater security,” he added, admitting that it was unlikely to happen given it would require changing the constitution by a two-thirds majority in the Austrian parliament. “This majority is not within sight,” Fasslabend said.
Among Austria’s neighboring countries, only Switzerland and Liechtenstein do not belong to the EU. Switzerland’s relations to the EU are governed by a comprehensive set of agreements; Liechtenstein is member of the European Economic Area (EEA). Austria holds regular meetings in various regional constellations with its neighbors on the levels of heads of state, ministers and officials.
A special case, is about the relations with Germany, that are based not only on shared language and culture but also on a centuries-long shared history. The Holy Roman Empire of the German Nation encompassed both Austrians and Germans, and for several centuries the Holy Roman Emperors came from the House of Habsburg. The countries are closely connected in the political, economic, cultural, academic, media and social issues.
An interesting issue of special importance to Austria’s foreign policy is South Tyrol, where under the Paris Agreement of 1946 (also known as the Gruber–Degasperi Agreement) and the South Tyrol Package of 1969, Austria is mandated with exercising a protective function vis-à-vis Italy for the Austrian and Ladin minorities in South Tyrol. The goal is to secure the continued ethnic, cultural, social and economic existence of the German and Ladin-speaking population of South Tyrol. Austria takes a keen interest in the developments in South Tyrol as well as the autonomy of South Tyrol, and there are regular exchanges on the political as well as on working level between Vienna, Innsbruck and Bolzano. On European level, the autonomy of South Tyrol serves as model for the solution of minority conflicts.
Another indicator to understand today’s Austria standing, is its migration policy and how the country approaches this challenge. First and foremost, Austria in its security policy recognizes clearly that, the relatively high proportion of individuals with migration background living in Austria entails additional expertise which can also be used in the interests of security. At the same time, it also brings about specific challenges concerning internal security. Illegal migration and unsuccessful integration are placed as a part of new challenges, risks and threats that affect both Austria and the EU.
For this reason, Austria argues that flows should be controlled at the EU’s external borders, and asylum applications should be examined outside the EU, possibly in hotspots that will be created in third countries under its supervision of the United Nations High Commissioner for Refugees. Notably, that 95% of irregularities of migratory flows come from the eastern border of Austria. Recently, Austria has cooperated with Greece in order to promote dialogue, exchange knowledge and produce initiatives for the development of more comprehensive EU policies and coordination.
Particularly, in Vienna June 2nd 2023, the “Vienna Declaration” was presented by the Secretary General and Defense Policy Director of the Ministry of Defense and the Greek Defense Policy Director in the presence of the Greek Ambassador in Vienna. The declaration was about the instrumentalization of illegal migration as a hybrid threat and the role of the military in combating it and it is the result of two workshops in Greece and Austria in 2022. It was evaluated, especially under the aspect of hybrid threats, the way illegal migration could be used as a means of pressure in various forms, particularly in the political level.
On the migration issue, Austria has not only every right to determine its internal policies, but also the moral stature as a country, that hosts one of the biggest percentages of people with migrant background in its society. As every indicator for the future, saws that the migration flows coming to Europe will increase, illegal migration, trafficking and unsuccessful integration will pose severe challenges in European societies. Can anyone really answer the question, what is the maximum accepted percentage as a part of the population in a country (for example 10% migrants in the total of any country), in order that country not to collapse? socially, on its cohesion, its structures, education system, health services etc. What is the reality in Europe today, for example in France or in Sweden? As the EU’s external affairs commissioner Josep Borrell said on Sep 23, migration could be “a dissolving force for the European Union” due to deep cultural differences between European countries and their long-term inability to reach a common policy.
Austria exercises a strict policy regarding migration and carries out border checks on its border with Slovenia since 2015. Furthermore, Austria is expected to introduce border controls with Italy given the run on Lampedusa, a tiny Mediterranean island known for its frontline role in migration to Europe. From the one hand, the Austrian side supports that their actions are about the fight against smuggling routes, but from the other side many Europeans translate that behavior as antagonistic, hampering one of the EU’s landmark achievements, the seemingly borderless Schengen area. Austria has already come under fire for vetoing the accession of Romania and Bulgaria earlier this year, whereas just recently this stance has backfired, as Romania is blocking Austrian cooperation with NATO.
Concluding our depiction, Austria is a country with a great empirical historic background, in the heart of Europe, surrounded by a relative safe environment as a middle to small level of a state in today’s world. Moreover, Austria is a wealthy country that has the ability to exercise its soft power globally especially through its membership in the EU, but in terms of hard power and taking into consideration its defensive expenditure, Austrian capabilities are very limited.
Austria seems to take advantage of its neutrality for its own interests and it looks like it will use this policy also in the future as its works on its favor, at least until this stance will not create any serious problems in its foreign relations. Its energy security is the big question mark, a topic that Austria receives many critics, especially in the path towards energy disengagement regarding Russian gas and its alignment with the EU’s priorities for energy diversification. Concerning current and future global challenges (including migration with a special focus), Austria calls for global cooperation and coordination as the best way to move forward, an open-minded position that other countries particularly in the EU should follow and try to work hand in hand, to adapt in the new world that is coming.
Download this PDF to get more info: Austrian Foreign Policy Report. Download this PDF to get more info: Austrian Security Strategy. Happy to see you here.