Authorities were aware of “preparatory actions” for a possible attack, said Franz Ruf, the public security director at Austria’s interior ministry.
The 19 year-old had been looking at the Taylor Swift concerts in Vienna as one of the potential targets, he added.
Around half of the approximately 15,000 residents in Ternitz – a small town in lower Austria in the eastern foothills of the Alps – had to be evacuated as police descended on the first suspect’s address on Wednesday.
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Ruf said the 19-year-old had pledged an oath of allegiance to the Islamic State group just weeks before.
An Austrian national with North Macedonian roots, he is believed to have been radicalised on the internet.
Ruf said that chemical substances were secured and were being evaluated. He didn’t give more details.
Wednesday’s arrest of the teenager came after a tip-off from foreign security authorities.
Although authorities have assured the public that “a concrete threat has been averted”, they warn that an “abstract threat” still exists.
The terror threat at the Ernst-Happel-Stadion is not the first. It was placed under high alert during the Euro football tournament in 2008 amid fears of an attack from Islamist extremist groups.
The Austrian government responded by tightening security, including a ban on air traffic over the stadium.
Taylor Swift’s Eras Tour returns to Wembley Stadium, in London, for five dates from August 15.
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Additional reporting by NZ Herald