Katzenstok made major changes to its military by scrapping the entirety of Havoc-supplied weapons and signed arms imports from the countries of Germany & Belgium. Rather than following a strictly defensive policy like its neighbors, the country took a more proactive mission in NATO, UN, & EU affairs. Katzenstok deployed combat elements to Afghanistan in 2001, where its mountain warfare experience contributed to the war effort against Taliban & al-Qaeda.

Katzenstok received a shipment of ex-German Marder I infantry fighting vehicles for its army. One battalion had deployed to join the US-led coalition into Afghanistan, and its mountain experience earned it several unit citations for engaging Taliban forces.