Austria aims to raise defence spending to 2% of GDP

Austria plans to boost its defence spending to 2% of its gross domestic product (GDP) by 2032, Finance Minister Markus Marterbauer announced during a parliamentary session presenting the draft federal budget for 2025–2026.

“As part of the Austrian Armed Forces development plan, we aim to raise military funding to 2% of GDP by 2032,” Marterbauer said, Caiber.Az reports, citing foreign media.

He underlined that this initiative requires careful consideration of both military needs and budgetary constraints.

The minister also noted that the government is examining the possibility of activating a national exemption clause at the European level, which would allow Austria greater flexibility in meeting its defence commitments under EU regulations.

To support the initiative, a working group will be formed, including representatives from the Federal Chancellery and four key ministries. This group will be tasked with holding consultations on the implementation and financing of the military development plan.

Austria, a neutral country with traditionally modest defence spending, has increasingly emphasised military modernisation in recent years amid shifting European security dynamics.

By Khagan Isayev