Austria Plans to Change Criminal Law to Facilitate Arms Exports

Punishable would henceforth only be the provision of "immediate" means of warfare under the War Matériel Act and loans that "immediately" serve the acquisition of weapons, ammunition, and equipment. Hattmannsdorfer does not want to weaken neutrality, but to clarify "what is permitted and what is not."

What is to change specifically?

The dimension of the business field is underscored by current figures from the ministry: "Laut Daten des Wirtschaftsministeriums wurden im ersten Halbjahr 2026 1.041 Exportanträge gestellt, das entspreche einem maximalen Auftragswert von 2 Mrd. Euro". "Die Zahl setzt sich zusammen aus 649 Anträgen und einem potenziellen Auftragswert von 1,7 Mrd. Euro für Verteidigungsgüter" as well as 392 applications for dual-use goods with a value of €308 million.

"Davon wurden rund 1,5 Mrd. Euro bereits genehmigt, Aufträge im Wert von rund 500 Mio. Euro sind beantragt, so das Ministerium am Mittwoch." A considerable portion of the submitted transactions is therefore still being processed.

The figures from the ministry

What counts as a defense or dual-use good is clearly defined in law: "Bei Verteidigungsgütern handelt es sich um Geräte wie Pistolen, die im militärischen Bereich und von Privatpersonen (beispielsweise Jägern) genutzt werden können." "Von Dual-Use-Gütern ist die Rede, wenn das Material (Sensoren, Laser etc.) sowohl für zivile als auch militärische Zwecke verwendet werden kann." Exports of defense and dual-use goods as well as war matériel are generally subject to approval in Austria for reasons of neutrality.

The draft also responds to criticism from the business community that Austrian firms are disadvantaged in international competition. Most recently, the banking and insurance division of the Economic Chamber stated that there is a "veritablen Wettbewerbsnachteil für österreichische exportorientierte Unternehmen sowie für Kreditinstitute." The planned simplifications are intended, according to the ministry, to help Austrian companies secure a larger share of the growing orders in Europe.

Criticism from the Chamber of Labor

At the same time, the number of legally complex constellations in which Austrian firms connect to armed conflicts through multiple intermediaries is growing. "Diese sogenannten Beitragsketten gehen theoretisch ins Unendliche," says Stücklberger. For the authorities, the line between permitted and criminal behavior is therefore increasingly difficult to draw.

Criticism is coming from the Vienna Chamber of Labor (Arbeiterkammer Wien). From the perspective of Aaron Gruber, expert for EU and international affairs at Arbeiterkammer Wien, "besondere Vorsicht geboten" is required for the reform. Moreover, "der Vorschlag, den reinen Versuch der Unterstützung einer Konfliktpartei straffrei zu stellen, jedenfalls unseriös" appears and stands "im Widerspruch zu allgemeinen strafrechtlichen Grundsätzen," Gruber explains.

Gruber also calls for a broader review: Whether such changes are compatible with Austria's neutrality and its foreign and security policy should be examined closely "von Verfassungs- und Strafrechtsexpert:innen genau geprüft werden und nicht allein von Rüstungslobbyisten."

The planned reform is therefore not merely an economic policy project, but directly touches Austria's neutrality doctrine. While the government points to jobs and locational advantages, consumer protection advocates and the Chamber of Labor see considerable legal risks. Coordination within the coalition is underway; a concrete timetable for parliamentary consideration has not yet been announced.