Defence Minister Backes delves into the 2% defence spending for Luxembourg

Defence Minister Yuriko Backes explained in conversation with RTL that the 2% objective has long been part of NATO discussions, featuring in summits held in Wales (2014), Vilnius (2023), and Washington (2024).

She noted that several NATO countries which had not yet reached the target have now committed to doing so this year – a development fuelled not only by pressure from the United States, but also by calls from Eastern European allies bordering Russia.

Backes stated that the 2030 timeline was no longer viable, adding that they did not wish for Luxembourg to end up isolated or disengaged from its allies. Because of this, they decided to move forward and meet the 2% benchmark before the end of the year, according to Backes.

The move was officially announced during the State of the Nation address, with the 2024 defence budget rising to €1.18 billion, representing an additional €312 million in spending.

NATO’s ongoing internal discussions about raising the spending target even further – to 5% – have come into sharper focus. Backes acknowledged that such a goal would be extremely difficult for Luxembourg. This would represent around €3 billion annually. She added that an important question now is how long this elevated level of defence spending will need to be maintained.

Investing with a return for Luxembourg

Backes outlined the government’s investment strategy, based on three guiding principles: first, projects must provide real added value for national defence; second, they must be feasible in terms of staffing; and third, there must be an economic return to Luxembourg.

Several strategic initiatives have already been identified, including the GovSat-2 satellite project, which has been under preparation for some time. Luxembourg also plans to increase funding for research and development, particularly in “dual-use” technologies – applications with both military and civilian purposes. In this context, Luxinnovation has pinpointed over 100 companies with relevant expertise.

Ongoing support for Ukraine remains a priority, and investments are also planned for ministries and government services that enhance Luxembourg’s overall resilience.

Weapons "made in Luxembourg"? 

Currently, Luxembourg does not produce weapons, as this is not allowed under existing national law. However, according to Backes, this too is under review. The government is working interministerially on a new national defence strategy, and the country’s arms legislation is being re-evaluated.

Drone production has already started in Luxembourg, though the systems are not combat drones. Instead, they are designed for surveillance and intelligence gathering, according to Backes. However, Backes noted that if these drones were sent to Ukraine, they could be equipped with weapons if necessary.

For the time being, no new funds are allocated directly to the Luxembourg Army. Backes described this as a measured approach, noting that major infrastructure projects are already funded through separate legislative initiatives, such as the Bleesdall shooting range, the Waldhaff ammunition depot, and continued collaboration with Belgium on a binational battalion, including a new vehicle maintenance facility in Sanem.

Balancing defence with climate and social priorities

When asked whether increased defence spending might result in cuts to other key policy areas, such as climate action, Backes was clear: Luxembourg’s climate objectives do indeed require large financial commitments, and investment in infrastructure remains crucial.

She emphasised that it is the Finance Minister’s responsibility to ensure that the overall budget meets these needs. She concluded that her role as Defence Minister is to make sure that the money allocated to defence is invested wisely.

You can listen to the interview, in Luxembourgish, here:

Tune in for the interview with the editorial team's guest every weekday at 8am on RTL Radio Luxembourg and live via RTL.lu and the app (audio and video). The show is also available afterwards on replay at RTL.lu and RTL Play.