This was the key message on Monday morning following a meeting of the Chamber of Deputies’ Foreign Affairs Committee, where Prime Minister Luc Frieden briefed MPs on last week’s EU summit. The summit saw 26 member states approve additional aid for Ukraine, while all 27 agreed on a €800 billion defence package.
The EU is allowing increased debt to finance defence spending, a move Finance Minister Gilles Roth opposed in an interview last week – calling instead for a reallocation of investments. DP MP Gusty Graas, chairman of the Foreign Affairs Committee, echoed concerns about borrowing, stating that efforts should be made to avoid new debt by reallocating existing funds or adjusting spending priorities.
Graas confirmed that discussions on defence spending would intensify in the coming days and weeks. Prime Minister Frieden has announced talks within the governing parties, CSV and DP, as well as with opposition parties. While there is broad support for increased defence investment, many questions remain about its implementation.
ADR faction leader Fred Keup argued that Luxembourg could meet the NATO target of spending 2% of its Gross National Product (GNP) on defence. He questioned how many soldiers and tanks the country should have and suggested that if Luxembourg could establish domestic weapons and ammunition production, it would be beneficial – so long as funds do not flow abroad.
Pirate MP Sven Clement similarly emphasised that defence investments should stay within the EU rather than being exported to non-European countries.
Green MP Sam Tanson cautioned that increased defence spending should not come at the expense of other priorities, such as infrastructure, social cohesion, and climate policy.
Left MP David Wagner agreed, arguing that aid to Ukraine should extend beyond military support to include economic assistance. To finance defence efforts, he proposed higher taxes on high incomes and wealth. When asked whether this could drive capital out of the country, Wagner suggested that retaliatory measures could prevent tax avoidance, citing U.S. efforts to track tax refugees worldwide.
As discussions on Luxembourg’s defence strategy continue, one thing is clear: the debate is far from over.
