"We have to save money," Darabos told ORF2 public television, adding that under "the pressure of empty coffers, this must be discussed without taboo".

The decision will affect around half of Austria's armoured military vehicles -- in total 384 tanks, of which 114 are the Leopard 2 type -- saving tens of millions of euros in operational and training costs, as well as fuel.

"We are no longer in the Cold War. We are not anticipating a battle involving tanks in the coming years," said Darabos, adding that Austria would still have "the most modern tanks in Europe".

As part of austerity measures that will impact all ministries by 2014, the armed forces must save 540 million euros (654 million dollars) out of its annual budget of 1.2 billion euros, according to local media reports.

Tanks that remain in service will continue to be used in overseas missions and for training. The exact scope of the cost-cutting campaign will be discussed with the military command, Darabos said.

The armour will not be sold or scrapped, but instead stored in case of future need. "We are obliged under the constitution to defend the country in case of emergency," said Darabos.

Further potential cost-cutting measures could include scaling back on other military vehicles and aircraft, as well as administration, but the number of troops will not be reduced, Der Standard newspaper reported Monday.

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