AUSTRIA Law and Practice Contributed by: Martin Schiefer and Christian Richter-Schöller, Schiefer Rechtsanwälte GmbH
1. Overview of the Defence Regulatory Framework 1.1 Principal Legislation and Regulatory Framework The constitutional frame is set by Article 9a of the Fed - eral Constitutional Act ( Bundes - Verfassungsgesetz , B-VG), which establishes the principle of compre - hensive national defence, and by the Federal Consti - tutional Act on the Neutrality of Austria of 1955 ( Neu- tralitätsgesetz ), which enshrines permanent neutrality and shapes the entire defence regulatory landscape. The key statutes are: • the Defence Act 2001 ( Wehrgesetz 2001 ) and the Military Powers Act ( Militärbefugnisgesetz , MBG) on the organisation and powers of the Austrian Armed Forces ( Bundesheer ); • the Federal Procurement Act 2018 ( Bundesver- gabegesetz 2018 , BVergG 2018) as the general procurement framework and the Federal Procure - ment Act for Defence and Security 2012 ( Bundes- vergabegesetz Verteidigung und Sicherheit 2012 , BVergGVS 2012), implementing Directive 2009/81/ EC (the “Defence Procurement Directive”); • the War Material Act ( Kriegsmaterialgesetz , KMG) and the Foreign Trade Act 2011 ( Außen- wirtschaftsgesetz 2011 , AußWG 2011), together with Regulation (EU) 2021/821 (the “EU Dual-Use Regulation”), for export controls; • the Sanctions Act 2024 ( Sanktionengesetz 2024 , SanktG 2024) for the implementation of UN and EU sanctions; • the Investment Control Act ( Investitionskontrollge- setz , InvKG) for foreign direct investment (FDI) screening; • the Information Security Act ( Informationssicher- heitsgesetz , InfoSiG) and the Information Security Regulation for classified information; and • the Network and Information System Security Act 2026 ( Netz - und Informationssystemsicherheitsge- setz 2026 , NISG 2026), applicable from 1 October 2026, for cybersecurity. 1.2 Competent Authorities The key government ministries responsible for over - seeing defence in Austria are the following:
• Federal Ministry of Defence ( Bundesministerium für Landesverteidigung , BMLV): Responsible for the armed forces, defence procurement through its armaments and procurement directorates, facility security clearances for classified defence contracts, and the military intelligence services ( Heeresnachrichtenamt and Abwehramt ). • Federal Ministry for Economy ( Bundesministerium für Wirtschaft , Energie und Tourismus , BMWET): Grants export licences for military and dual-use goods under the Foreign Trade Act 2011, conducts FDI screening under the Investment Control Act and is responsible for defence industry policy. • Federal Ministry of the Interior ( Bundesministerium für Inneres , BMI): Grants war material licences under the War Material Act in agreement with the foreign affairs and defence ministries, and hosts the Directorate for State Protection and Intelligence ( Direktion Staatsschutz und Nachrichtendienst , DSN) and, from October 2026, the new Federal Office for Cybersecurity. • Federal Ministry of Finance ( Bundesministerium für Finanzen , BMF): Controls the defence budget via the annual Federal Finance Act and the medium- term expenditure framework, oversees the cus - toms administration including the tariffs authority, and owns the central purchasing body in Austria ( Bundesbeschaffung GmbH , BBG), through which non-military-specific procurement is channelled. Other Authorities The Federal Ministry for European and International Affairs ( Bundesministerium für europäische und inter- nationale Angelegenheiten , BMEIA) provides the for - eign and security policy assessment for licensing and embargo matters. The Austrian Customs Office ( Zol- lamt Österreich ) enforces export controls at the border. The Financial Market Authority ( Finanzmarktaufsicht , FMA) has supervised financial sanctions compliance since 1 January 2026, having taken over from the Oesterreichische Nationalbank. The Federal Admin - istrative Court ( Bundesverwaltungsgericht , BVwG) reviews procurement decisions. Public prosecutors, including the Economic Crime and Corruption Pros - ecutor’s Office ( Wirtschafts - und Korruptionsstaatsan- waltschaft , WKStA), handle criminal enforcement. The ministries interact through statutory agreement ( Ein-
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