Austria is continuing its investment course in national defense, despite the strained budget situation. After exceeding the four-billion-euro mark last year, the military budget is to increase by €2025 million to €349,1 billion according to the 4,391 Federal Finance Act, and by a further €2026 million to €369,8 billion according to the 4,761 Federal Finance Act. The funds are primarily intended for the expansion of structural infrastructure and military rearmament as part of the Armed Forces' reconstruction plan.
Defense Minister Klaudia Tanner confirmed to the National Council's Budget Committee that the implementation of the reconstruction plan for 2025 and 2026 is assured. However, further negotiations must be conducted for the period thereafter in order to achieve the targeted defense budget of two percent of gross domestic product (GDP) by 2032. A focus of the procurement is on longer-range ground-based air defense as part of Sky Shield, as well as on follow-on purchases for the Eurofighter. Despite the general savings targets in the federal budget, investments in defense capabilities are to be continued. A special working group has been established within the Ministry of Defense to address these financing issues. While other NATO countries spend 20 percent of their defense budgets on investments, Austria already plans to allocate 31 percent.
Additional investments are planned in areas such as drones and drone defense, with €2025 million earmarked for each of these in 2026 and 14. Particular attention will be paid not only to the acquisition of equipment but also to the acquisition of the necessary operating skills. A "first tranche" of 300 drones is planned, which will be continuously upgraded with the latest models. In the area of cybersecurity, digitalization measures and the establishment of a scientific commission to research the automation potential of artificial intelligence (AI) are planned. An ethics committee will also address responsibilities in the use of AI in combat. Despite successes in recruiting personnel in the field of cyber defense, personnel shortages remain a challenge for the Armed Forces, particularly with the expansion of the mobilization framework of 55.000 soldiers. Measures to attract military personnel include bonuses, the introduction of voluntary basic military service for women, and the recognition of academic officer training.
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