How two of Europe's last neutral countries are shifting stance

After Sweden and Finland joined NATO, the list of neutral countries in Europe has shrunk. One holdout is a small zone in the Alps. 

Switzerland and Austria have both said that NATO accession is out of the question, but they also say neutrality needs to be flexible. In the past months, the two countries have joined several European defense programs.

"Of course neutrality needs a certain degree of flexibility in order to fulfil our tasks properly," Swiss defense minister Martin Pfister told CGTN at a military training in May. "And that includes being able to carry out exercises abroad."

It was the first large-scale joint training with Austria and Germany in more than two decades – and it's just the beginning, as Pfister calls for more cooperation with neighboring armies.

"Switzerland will not move closer to NATO, nor will it become a member of NATO," Pfister insisted. "But cooperation with the armies of our neighboring countries is of central importance, because we cannot ensure our security completely autonomously."

The move towards a more flexible neutrality comes with the Alpine countries changing gear. After the end of the Cold War, military spending in Switzerland and Austria was greatly reduced – but when the Ukraine conflict escalated, the two countries realized their defense capability was lacking.

Defense spending and co-operation

Now Vienna and Bern have allocated billions of dollars to their defense budgets but also agreed to facilitate the transfer of European forces across Alpine borders, and to join the continent's air defense programme 'Sky Shield'.

"It is essential for militarily neutral states such as Austria and Switzerland to be able to defend themselves," Austrian defense minister Klaudia Tanner told CGTN. 

"And 'Sky Shield' is nothing more than joint air defense procurement where we are making very good progress, especially in terms of short and medium ranges."

But some would rather see less cooperation. Right-wing populists, which run the biggest parties in both countries, are against 'Sky Shield' participation, fearing a NATO accession through the back door. 

Meanwhile, Switzerland's Pfister also wants to ease the country's strict rules on arms exports in view of declining weapon sales. The country's War Material Act was tightened shortly before the war in Ukraine and prohibits the transfer of Swiss weapons and ammunition to nations in armed conflict. 

Germany was therefore not allowed to transfer Gepard ammunition to Ukraine, and Denmark was not allowed to transfer Piranha infantry fighting vehicles. 

Several countries have therefore announced that they will no longer purchase Swiss military equipment if they cannot freely distribute it in an emergency. 

A new law amendment is now set to allow exports to 25 specific countries with similar values, including re-export to third countries. However, the bill first needs to be approved by Switzerland's parliament and possibly also through a national referendum.

It remains to be seen just how flexible neutrality can be.