© EMA
PM Frieden recently announced a significant increase in Luxembourg's military expenditures to 2% of the GNI by 2030, doubling the current budget to €1.4 billion, as Defence Minister Yuriko Backes outlines an ambitious plan to enhance the nation's defence capabilities amid ongoing NATO discussions.
In his first address on the state of the nation, Prime Minister Luc Frieden announced that Luxembourg's military expenditures are to be increased to 2% of the gross national income (GNI) by 2030 to meet NATO contribution expectations. Defence Minister Yuriko Backes has since provided the relevant parliamentary committee with an initial overview and road map on how to achieve this ambitious goal. The plan thus involves additional expenditures amounting to hundreds of millions of euros to meet the targets set by the North Atlantic Treaty Organization.
The current budget for military expenses stipulates €700 million, and the goal is to increase this figure to €1.4 billion by 2030. This includes funding for various initiatives such as the Belgian-Luxembourg battalion, modernising the Herrenberg military HQ, strengthening military satellite capabilities, and providing financial support to the 'Airborne Warning and Control System' (AWACS) fleet. Additionally, Backes highlighted plans to introduce new air defence capabilities and continue investing in cyber defence.
In the coming weeks, defence spending will be a primary topic of discussion at various NATO meetings, including the Defence Ministers' Council on Thursday and Friday, as well as the July summit in Washington DC. Regarding support for Ukraine, Backes states that Luxembourg remains committed to showing solidarity, regardless of its own military needs.
Among the political opposition, there is an understanding that increases in military spending are necessary. MP Fernand Kartheiser of the Alternative Democratic Reform Party (ADR), however, cautions that diplomacy can help improve international security and in return ensure that less needs to be spent on defence efforts. MPs Sven Clement of the Pirate Party and Georges Engel of the Luxembourg Socialist Workers' Party (LSAP) meanwhile contend that the plans are overly vague at this moment in time.