Luxembourg's defense spending is rising: what does this mean for us?

Luxembourg's defense spending is rising: what does this mean for us?

The Luxembourg government's defense spending is on a continuous rise. By the end of the current year, the government plans to spend 1.18 billion euros on defense purposes. This strategy will be implemented under the leadership of Minister Luc Frieden, positioning Luxembourg as a committed partner within NATO.

In an upcoming State of the Nation address to the assembled Chamber, Prime Minister Luc Frieden will present a new roadmap for defense spending. This stipulates that Luxembourg will spend two percent of its gross national income (GNI) on national security by 2030, which was already decided by the previous government. However, in view of geopolitical developments, in particular the war in Ukraine and a changing course of the USA, a rethink is necessary.

Strategic realignment

The ambitious goal of achieving the NATO target by the end of 2025 was underlined by peace. In this context, he also informed the NATO Secretary General about the new decisions. Defense Minister Yuriko Backes will inform the Chamber Commission in detail about future investments in defense.

To finance increased defense spending, the government is planning a three-pronged strategy. Firstly, a part will be made available through the budget, including a planned government bond for security, in which private individuals can also participate. Furthermore, spending should be prioritized in the upcoming budget. In addition, the mobilization of funds outside the budget is sought through a national fund at the “Société Nationale de crédit et d’investissement” (SNCI). This fund is intended to finance activities that have both military and civilian purposes.

Technological investments

A significant project as part of this realignment includes the planning of a second communications satellite for military purposes. SES, the operator of the satellite, will play a central role in the EU IRIS² program, which aims to develop 290 new secure communications satellites in Europe for both military and civil applications.

The developments in Luxembourg's defense policy are not only an expression of an increased awareness of national security, but also a sign of global change in the geopolitical landscape, which brings with it new challenges. The Luxembourg government shows that it is willing to respond appropriately to these challenges and thus position itself as a powerful player within NATO.

People's friend reports that the Luxembourg government's defense spending is continually increasing. At the same time, it lifts Daily newspaper highlighted the importance of the new defense spending roadmap.