Austrian Armed Forces: 12.6 billion euros missing by 2031 for build-up plan

Goal: Two percent of GDP by 2032

The aim of the ten-year build-up plan adopted in 2022 under the impact of the Russian attack on Ukraine is to raise defense spending to two percent of GDP by 2032. According to the current budget figures, however, defense spending in 2028 will remain at 1.19 percent of the relevant GDP, rather than rising to 1.55 percent as originally planned.

The personnel plan also has "erhebliche nachteilige Auswirkungen auf die Umsetzung des Aufbauplans", the report states. The inadequate human and financial resources mean that the build-up plan has to be adjusted – as the newspaper "Die Presse" had already reported on Thursday.

Budget development and austerity course

Despite the austerity course, the budget of the Ministry of Defense will increase nominally in the coming years. The funds provided for in the double budget 2027, including all authorizations and pension payments, correspond to 1.19 percent of the relevant GDP for 2025. This means that Austria remains below the NATO benchmark of two percent.

In total, 12.56 billion euros are missing by 2031. The difference between the funds required and those actually provided – including authorizations – is "gewaltig", as the report notes. The financial gap is the greatest systemic weakness in the implementation of the security policy objectives.

Consequences for the build-up plan and personnel

The delay in implementing the build-up plan means that planned investments in equipment, infrastructure and personnel cannot be made within the envisaged timeframe. This affects both the modernization of existing capabilities and the development of new capacities that are deemed necessary in view of the security policy situation.

With the presentation of the National Defense Report 2026/2027, the budget gap is now officially brought to the attention of Parliament. The political debate over the financing of national defense is likely to intensify in the coming weeks, especially since the government is continuing its austerity course while at the same time international obligations exist.