FOREIGN AND DEFENSE POLICY OUTLINE OF THE NEW

C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 001735

SIPDIS

E.O. 12958: DECL: 11/25/2023
TAGS: PGOV PREL AU
SUBJECT: FOREIGN AND DEFENSE POLICY OUTLINE OF THE NEW
AUSTRIAN GOVERNMENT

REF: VIENNA 1721

Classified By: Econ/Pol Counselor Dean Yap. Reason: 1.4(b)

Summary
--------------


1. (U) The November 23 coalition agreement between Austria's
Social Democrats and Conservatives includes brief (less than
10 percent of the total text) sections on foreign and defense
policy. These for the most part affirm in broad terms
existing policy -- specifics are given only in areas where
Austria has a well-developed tradition of policy engagement:
arms control and disarmament, opposition to nuclear power,
Turkish EU membership, for example). No specifics are
provided on Austrian policy with regard to Russia, the
broader Middle East, or military reform. End Summary.

European Policy
--------------


2. (U) EU affairs receive the lion's share of consideration
on foreign affairs in the agreement, though much of the focus
is on internal EU socio-economic issues (growth, employment,
transit, consumer protection, labor mobility, etc.).
Relatively little consideration is given to the EU's
international role. The EU's desired role as a model and
avant garde in climate policy and opposition to granting
further access to GM agricultural products are mentioned.
The agreement does support a more active EU role in promoting
energy security, but not at the cost of greater reliance on
nuclear power.


3. (U) EU membership for former Yugoslav states is supported,
as they become qualified. Closer ties - but not membership -
with Ukraine, Belarus, and Moldova are endorsed. Turkey is
offered a "tailor-made Turkish-European community" and the
coalition partners reconfirm their previous commitment to a
referendum on Turkish membership in the EU, should that
option result from the present EU-Turkey negotiations.


4. (U) On the issue that brought the previous coalition down
-- the SPO's proposal that referenda be held on all future EU
treaties, the partners agreed that there would not be a
referendum unless both parties agree. Despite a de facto
victory for the OVP on this issue, conservative Foreign
Minister Plassnik found it insufficient and resigned from the
cabinet. The SPO and OVP affirm their support for increasing
the EU's civil and military conflict management capability.


5. (U) The partners note the deep public skepticism toward
the EU and propose a series of measures designed to increase
public knowledge of and confidence in EU institutions.

Foreign Policy Outside Europe
--------------


6. (U) The coalition agreement largely repeats long-standing
principles underlying Austrian foreign policy (e.g., "eternal
neutrality") and reaffirms the commitment to pursuing foreign
policy through multilateral institutions - first and foremost
the UN (noting as well Austria's upcoming Security Council
tenure),but also including the OSCE and NATO's PfP.


7. (U) Arms control and disarmament are endorsed as central
concerns of GoA foreign policy. The partners also express
their "concern (about) the renaissance of nuclear energy" and
pledge to work for the establishment of a "multilateral
system for the regulation of access to nuclear fuel under the
strict control of the IAEA."


8. (C) Increasing the role of women in international affairs,
developing Vienna as a base for international organizations
(a new international agency for renewable energy is proposed)
and conferences, and promoting international cultural
dialogue are all identified as important tasks for the next
Foreign Minister. The agreement also undertakes to move
toward devoting 0.51% of GDP to foreign assistance by 2010
and 0.7% by 2015, with a focus on poverty reduction, human
security, and health promotion. However, the program also
notes that the GoA will have difficulty in meeting these
goals for budgetary reasons.

International Economic Policy
--------------


9. (U) More detailed reporting on the financial and economic
provisions of the package will be forthcoming. In brief, the
partners look to the EU to provide both the external bases
for Austrian economic security and to take the lead in
international trade issues.


VIENNA 00001735 002 OF 002


Energy and Environment
--------------


10. (U) These are major elements in the coalition agreement
and will be outlined septel. The key international energy
focus is on securing European energy supplies through: 1) the
Nabucco pipeline, 2) construction of LNG terminals, 3) South
Stream, 4) an additional oil pipeline to the Schwechat
refinery, and 5) enhanced dialog with energy producing
countries. On the environment, the partners acknowledge the
EU's 20-20-20 goals and calls for an undefined "fair division
of burdens ... in the EU." Without committing to specific
targets for Austria, the agreement lays out national concepts
for adaptation, reduction of emissions, and increasing use of
renewables. Stress is laid on Austria's "anti-atom policy."

Defense Policy
--------------


11. (C) Efforts to reshape Austrian military forces for a
more active, overseas role have been faltering due to
resource constraints. The coalition paper pledges support
for the reform program (Bundesheer 2010),but makes no
concrete commitments about budget levels and the paragraphs
on future procurement are particularly vague. The partners
plan to establish an evaluation council, including outside
experts, which is to examine, by the end of 2009, "the
transformation of reform steps in the view of priorities,
quality and the adherence to schedules in the light of real
developments." "Real developments" is doubtless a reference
to the fact that, because of underfunding, the reform process
is lagging badly.


12. (C) The tasks of the military are very broadly drawn:
territorial defense, emergency and humanitarian assistance at
home and abroad, and international peacekeeping missions are
all described as priorities. The partners also affirm their
determination to maintain conscription on the basis of a six
month term of service and to allow the MoD to keep all of the
proceeds from the sale of obsolete/unneeded military
infrastructure and materiel, a promise made to help finance
reform that has not thus far been kept.

Comment
--------------


13. (C) Foreign policy issues played no role in the election
and, since there are not major differences between the
parties on issues (except for the EU referendum),it is not
surprising the coalition agreement says so little about
specific issues such as Iran, Iraq, the Israeli-Palestinian
conflict, or relations with Russia. This approach also
reflects a preference for thematic diplomacy as opposed to
dealing directly with problematic situations. Moreover,
foreign policy in Austria is made by a small official circle
comprised of the MFA staff, the Chancellor and his diplomatic
staff, and other Ministers and staff if specifically
involved. These tend to want to avoid extended public or
parliamentary discussion of contentious issues, which keeping
policy statements at a high level of generality as long as
possible tends to do.


GIRARD-DICARLO