Austria's Foreign Policy after the Cold War

Yoshikazu Hirose
Introduction
Since the end of the Cold War, the foreign policy orientation
sof Austria, a permanently neutral state, has undergone a drasticchange. Austria started to distance itself from the conventional
interpretation of neutrality. In 1992, Austria took part in the North
Atlantic Cooperation Council, a forum for discussing security
issues with NATO member states, and in 1995 Austria alsojoined the European Union and signed the Partnership for Peace
Treaty with NATO.*1 It seems that Austria has given up foreign
policy assets resulting from its neutrality and decided to leanfully towards the West.
At the same time, Austria took the initiative in starting a
regional cooperation in Central and Eastern Europe.*2 This has
become known as the "Central European Initiative" (CEI,hereafter). It seems that Austria, using its experience andknowledge of having been the center of the old Hapsburg empire
as well as having been located between the East and the Westduring the Cold War, is now trying to find a new role in Centraland Eastern Europe.
The purpose of this paper is to determine where Austria's
neutrality will go and to examine the meaning of the CEI forAustria in the post-Cold War period. As the change in theinterpretation of its neutrality and the active participation inregional cooperation are two of the most importantcharacteristics of Austrian foreign policy after the Cold War, theexisting article will also examine Austria's role in the New
European Architecture.

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Austria's Foreign Policy after the Cold War

Austria's Foreign Policy during Cold War
Austrian foreign policy from 1955 to 1989 can becharacterized by its neutral policy and "small state strategy".
Austria regained its full independence in 1955, based on theAustrian State Treaty and the Declaration of PermanentNeutrality. The latter was attached to the State Treaty under thepressure of Moscow, which demanded that Austria become apermanently neutral state like Switzerland.*3 From the beginning,
however, Austria adpoted a different type of neutral policy than
Switzerland. Austria became a member of the United Nations inthe same year of its full independence and became a member of
the Council of Europe in 1956. Austria actively participated inseveral UN peace-keeping operations; Congo in 1960-63,
Cyprus in 1964, the Middle East since 1967, and so on.
At the same time, Austria, as a neutral state, could serve as ameeting place for East-West dialogue. The summit meeting
between Khrushchev and Kennedy was held in June 1961. The
negotiations on Conventional Forces in Europe as well as theCSCE process have taken place, and have been followed up, inVienna. Austria defined its foreign policy of active participation
in international organizations as an "active neutral policy".
These efforts contributed to the high prestige of Austria's
neutrality in the international community.
Austria's foreign policy could also be seen in the context ofthe strategy of a small industrialized state.*4 Small states canwork efficiently in international conferences or multilateralnegotiations where all of the participants are likely to be
regarded as equal partners. The famous N + N group within theframework of the CSCE was known as supporting andsometimes stimulating the CSCE process.*5 Austria also madeevery effort to invite multilateral organizations to establish
then-headquarters there. In 1957, the International Atomic
Energy Agency (IAEA) settled in Vienna, OPEC followed in1965 and UNIDO in 1967. As a result, Austria enjoyed a goodreputation in the international community during the 1960's and1970's and inYoshikazu Hirose

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1971 Kurt Waldheim, former Austrian ambassador to the US, wassymbolically elected Secretary General of the United Nations.
Austria's New Foreign Policy Initiatives since
the Middle of 1980's
Since the middle of the 1980's, when drastic changes inEast-West relations began to break out, Austria has lost many of
the advantages that it had enjoyed during the Cold War.
Although Austria still maintained an active role in internationalorganizations like CSCE, the viability of an active neutral policy
gradually diminished and Austrian foreign policy became
focused primarily on European integration. This tendency wasstrengthened when the Social Democratic Party of Austria (SPO)
and the Austrian People's Party (OVP) formed the grand coalition
government in 1987 and conservative OVP leader A. Mockbecame Foreign Minister.
The major reorientation of Austrian Foreign Policy wasdefined as "realistic neutral policy", a foreign policy based
mainly on Austria's national interests. According to this newconcept, Austria started to reconsider its integration into the EC.
More than 50% of Austrian foreign trade was with EC countries
and it was quite realistic that Austria would be further integrated
into the EC as a member. Furthermore, the Soviet Union did notseem to object to Austria's application to the EC, as they once
did before. One of the big obstacles left was the neutrality ofAustria. The EC had decided to develop integration also in thefield of security (CFSP). In its application for EC membership in1989, therefore, Austria included a clause to safeguard itsneutrality.*6
The rapid developments in Europe after 1989 allowed
Austria to adopt a more flexible interpretation of its neutrality.
During the Gulf crisis, Austria took part not only in the economic
sanctions against Iraq, but also allowed the US-led allianceagainst Iraq to transport war materials across Austria (Austrianparliament even passed an amendment to the War Materials Law,

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Austria's Foreign Policy after the Cold War

which allowed exceptions to its neutrality in case of a UN
decision).*7
With such a realistic and flexible interpretation of neutrality,and the support of two-thirds of Austrian people forEU entry, asshown by the 1994 referendum, Austria finally joined the EU inJanuary, 1995. Austria also became an observer of the West
European Union and signed the Partnership for Peace treaty withNATO.
All of these developments seem to indicate that after theCold War the focus of Austria's foreign policy orientation willlean completely towards West European integration.
Austria from its historical background, however, has a lot ofexperience, knowledge and connectcions with its neighbours inCentral and Eastern Europe. Austria's concern in this region isdominated by economic and security factors. During the Cold
War period, Austria, using geographical advantage, prospered in
the notorious "triangle trade" with Eastern Europe. Now after
new democracies have started to liberalize their economicsystems, there is another opportunity for Austria to develop
foreign trade with Eastern Europe directly and more openly. Infact, Austrian trade with these countries has almost doubled
during the past two years.
At the same time, there is a danger of ethnic conflicts inCentral and Eastern Europe, which is known as a region ofmulti-ethnicity. These potential sources of conflicts had been
contained by the existence of serious global conflict between theEast and West during the Cold War period. After the resolution ofthis global tension, there is a greater potential for accidental
ethnic conflicts in this region than before, as we have seen in theformer Yugoslavia. Regional stability is a prerequisite forAustrian economic prosperity with Central and Eastern Europe.
In the search for stability in this region, Austria took the lead in1989 in establishing new regional cooperation, which later
became known as the Central European Initiative.

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Regional Cooperation: Central European Initiative
The Central European Initiative (CEI), originally called"Quadragonale", was founded in 1989 by Austria, Hungary,
Italy and the former Yugoslavia. After several changes of its name("Pentagonale", "Hexagonale"), the present name was adopted
in 1992. The CEI is a framework for regional cooperation
between fifteen countries in both Western and Eastern Europe.
The purpose of the CEI is the coordinated implementation ofjoint projects within Central and Europe, on the basis of existingbi- and multi- lateral relations.
The main fields of cooperation are determined by theConference of Foreign Ministers (every six months) and theConference of Heads of Government (every year). The
Committee of National Coodinators, consisting of high officialsof member countries, is held quarterly and acts as a link among
the working groups and among member countries. The CEICenter for Information, Documentation and Projects wasrecently established in Trieste.
There are 16 working groups within the CEI Energy, Media,
Disaster relief, Small and medium-sized enterprises, Culture,
Education and youth exchange, Agriculture, Statistics,Telecommunications, Tourism, Environment, Transport,Migration, Science and technology, Minorities, Vocational
Training, Reconstruction of Bosnia Herzegovina and Croatia. In
order to create a more concrete image of this cooperation, it isnecessary to list some examples of their activities:
Energy (chair state, Hungary): the main emphasis is onlarge-scale infrastructural projects for supplying energy (e.g.oiland gas pipelines); Disaster relief (Italy): an agreement on
forecasting, preventing and relieving the effects of natural andtechnological disasters was drafted; Small and medium-sizedenterprises (Hungary, later taken over by Slovenia): this grouppromotes cross-border cooperation and exchanging ofinformation; Culture, education and youth exchange (Slovakia):Exhibitions (Year of Baroque in Central Europe, 1992) and youth

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Austria's Foreign Policy after the Cold Warand student exchanges are intended to promote anunderstanding of the common culture and history of the peoplesand nations in a more integrated Europe; Statistics (Austria): a
brochure entitled "CEI in figures" was issued in 1994 with dataon demographic, economic and social developments in themember countries; Environment (Austria): this groupconcentrates on waste disposal, nuclear safety, renewable energy,
biological diversity, and the harmonisation of environmental data.
Through its activities in these fields, the group aims to help solve
transborder environmental problems on a multilateral level. The
Central European Data Request Facility was set up by the CEI inVienna, with the Regional Environment Center for Central andEastern Europe in Budapest, to supply comprehensive
information and carry out research on the protection of theenvironment; Transport (Italy): its aim is to establish corridors forroad and rail transport, to promote combined transport systems,
to link the Adriatic region with the Central Euroepan transportsystem and to increase cooperation in air and water transport;
Migration (Hungary): the problems of refugees, asylum-seekers
and migrants should be eased by an exchange of information on
population movement; Minorities (Hungary): the main functionof this group was to draw up a CEI Instrument on the protectionof minority rights. This was finalised in the autumn of 1994 andhas in the meantime been signed by a maj ority of the membercountries. In the future this group will concentrate on working
out common CEI positions on minority questions for submission
to international fora.*8
Originally, the purpose of the CEI was to provide a loose
framework for mainly economic cooperation between member
states having different politico-economic systems but belonging
to a certain historical region with a common cultural andhistorical heritage. Since then, however, the main scope andcharacter of the CEI have gradually changed. First of all, the CEI
has become a framework for pragmatic cooperation throughspecific projects, especially in those areas where member states
share keen interests: environmental questions and infrastructure

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217

issues. The epistemic community, in the form of working group
activities, is playing an important role in the development of thiscooperation. Secondly, the CEI has functioned as a support
mechanism for the European integration process: the EU has
developed a structured dialogue as the main instrument for
promoting political integration of the countries of Central andEastern Europe. In this regard, the CEI could serve as animportant platform by identifying and presenting commonpositions and interests among member states. Thirdly, the CEI
has provided an opportunity for regular political dialogue:minority issues are especially important in this respect, because
they constitute a potential threat to the regional stability of theCEI.*9 The proposal of making the CEI area a Nuclear-Free Zone
has also been put forward by Ukraine President Kuchma.*10For Austria the CEI could improve its security environment.
After the Cold War, the main threat facing Austria is not a military
one but a non-military type of threat. This non-military security
problem includes a whole range of destabilising factors: thelarge-scale organised international crime, the mass flow ofimmigrants and refugees, the spread of arms and NBC weapons,and environmental problems. Clearly such issues cannot be dealt
with efficiently within the jBramework of traditional strategies ofpower politics alone. Given such new security circumstances,
cooperation in various fields in the CEI framework will
strengthen the security of Austria and contribute to the stability ofthe region. At the same time, Austria, as an EU member and as aleading member of the CEI, can play a pivotal role in helping
Central and Eastern European countries join EU. This is a newopportunity for Austria to compensate for its loss of power and tomaximize its national interests in the post - Cold War period.
Concluding Remarks
Since the end of the Cold War, Austrian foreign policy,
based on its neutrality, has undergone a fundamental change.
Austria is still a dejure neutral state under the Constitutional Law.

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Austria's Foreign Policy after the Cold War

But, in 1995 Austriajoined the European Union, which has been
discussing further integration, including the CFSP. Austria is also
participating actively in the PFP as well as the NACC, especiallyin the field of peace-keeping operations. Austria, therefore, ineffect gave up its neutrality.*11 In the latest Austrian foreign
ministry's yearbook, there is no longer any reference toneutrality.*12 Consequently, Austria will take part in the processof establishing the New European Architecture, with almost nosecurity constraints.
The "Small state strategy", on the other hand, still survives
in the form of active participation in regional cooperations aswell as the OSCE. The Central European Initiative offers a newopportunity for Austria to compensate for the reduction of its
power resulting from the loss of its neutral and geopoliticaladvantage during the Cold War. Austria can now become a main
coordinator of Central Europe through the CEIby supporting thestable region-building process and by helping to prepare Centraland Eastern European countries for formal membership in theEU.
The change in the interpretation of Austrian neutrality andits active participation in regional cooperations are two important
aspects of Austrian foreign policy in the post-Cold War period.
The former is essential in order for Austria to be integrated further
into the West. Austria can enjoy economic prosperity by joining
the EU. The latter is important in order for Austria to maintainregional stability in Central and Eastern Europe, a multi-ethnicregion. Austria can improve regional stability as well as regional
economic development by actively supporting regionalcooperation. Regional cooperation could be basis for mutual
understanding as well as inter-regional trade activities, thusincreasing transparency across borders.
The end of the Cold War has shifted Austria's position inEurope. It is usually estimated that Austria's peculiar role as aneutral state in East-West conflict has ended and that Austria will
become just one of the small members of the EU. The newenvironment, however, provides opportunities and challenges forYoshikazu Hirose

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Austrian foreign policy.
Notes
12

3

4

5

6

7

Bundesministerium
furauswartige
Angelegenheiten,
Osterrelchische aussenpolitische Dokumentation: Texte undDokumente Nr. 4, August 1995:116-123.
Concerning this regional cooperation at the beginning, see
Hanspeter Neuhold(ed.), The
Pentagonal /Hexagonal
Experiment: New Forms of Cooperation
in aChanging
Europe. Braumuller/Wien, 1991.
VojtechMastny,"KremlinPolitics
andtheAustrian
Settlement", Problems of Communism, July -August (1982): 3751.
The concept "small state strategy" is from Helmut Kramer,"ForeignPolicy",
VolkmarLauber(ed.),Contemporary
Austrian Politics, Westview Press, 1996: 156-173.
Hanspeter
Neuhold(ed.),
CSCE:
N+N
PERSPECTIVES,
Braumuller / Wien, 1987.
Andreas Lernhart, Austria and the European
Community:
Neutrality and Membership, Signum/Wien, 1990,p. 13, 16. In
the application
form, itreads: "...Austria
ismakingthisapplicationon
theassumption
that
itsinternationallyrecognized status of permanent neutrality...will be maintained
and that, as a member of the European Community by virtue of
the Treaty of Accession, it will be able to fulfil its
legal
obligations arising out of its status as a permanently neutral
state and to continue its policy of neutrality as a specificcontribution towards the maintenance of peace and security inEurope...", Bundesministeriumfiir auswartige Angelegenheiten,
Osterreichische aussenpolitische Dokumentation: Texte undDokumente, January 1990:68.
Masayoshi Kamohara and Yoshikazu Hirose," The Neutrality inthe post-Cold War period: Austrian Foreign Policy in Transition(Reisen no Shuen to Churitsu)", Yoshikazu Hirose (ed.), TheInternational Politics of Europe inTransition(Yoroppa220

Austria's Foreign Policy after the Cold War

89101112

Henkaku no Kokusaikankei),Y^e¥so-sh.obo¥¥ /Tokyo, 1995.
Austrian Foreign Policy Yearbook: Report of the AustrianFederal Ministry for Foreign Affairs for the year 1994:30-31.
Osterreichische aussenpolitische Dokumentation: Texte undDokumente Nr. 6, Dezember 1995: 61.
Jakub Karpinski, " Kuchma on Security", OMRI DAILY DIGEST,No. 125, Part H, 27 June 1996.
The neutrality of Austria has become an integral part of its
national identity
since1955.
Many
Austrians
feelthatneutrality
isa
substantial
elementofAustrianidentity.
Therefore,
they
preferkeeping
its
neutrality
overEUmembership. See, Hanspeter Neuhold, Paul Luif (Hrsg.), Dasaussenpolitische
Bewusstsein
derOsterreicher:
Aktuelleinternationale Probleme im Spiegel der Meinungsforschung,
Braunmiiller / Wien, 1992, S. 91-94. See also, Andreas Barz," Das Ende der Neutralitat: Die neutralen Staaten im Wandel der
Weltpolitik",Aus Politik und Zeitgeschichte,BAlA% /92, S. 4.
The Austrian Federal Ministry for Foreign Affairs, Austrian
Foreign Policy Yearbook 1995.