Xavier Bettel and Yuriko Backes unveil strengthened push into defence innovation

As Luxembourg marks its 10th year with a national pavilion at the prestigious Le Bourget fair, its ministers used the occasion to unveil a strengthened push into defence innovation and international collaboration – anchored by a €50 million contract and the launch of a national defence industry association.

90 Luxembourg businesses in the defence sector

At the annual International Aeronautics and Space Show in Paris, Minister of Defence Yuriko Backes presented the new guide developed by Luxinnovation. There are now 90 businesses in Luxembourg which are participating in the defence system in some capacity. Backes also saw her French counterpart Sébastien Lecornu on Monday.

She stressed the importance of shaping defence policy jointly as a united Europe. Luxembourg has committed within NATO to investing in air defence systems as well as a mobile military hospital.

"There are many sectors we will need to invest in over the next few years, including technology such as drones. We learned from the Ukraine war which direction we need to go into and what we need", the Minister of Defence foreshadowed.

'We shouldn't be more stupid than others'

In addition to the Minister of Defence, Foreign Affairs Minister and Deputy Prime Minister Xavier Bettel also attended the opening of the Luxembourg Pavilion on Monday morning. Both ministers took the opportunity to visit a number of industrial companies.

Bettel spoke of a real threat, saying that Luxembourg, too, must make efforts if it wants to remain part of NATO. He explained that "if we have to spend money, we shouldn't do so more foolishly than others – we should also make sure we get something in return."

The Deputy Prime Minister said they had met new companies, as well as some that already have contacts in Luxembourg. "The traveller is there to build connections, to build the bridge."

On Monday, a Luxembourgish company signed a contract worth €50 million. Bettel did not go into further detail but emphasised that one should not be overly sceptical. Many companies are interested in Luxembourg as a location because they can start from scratch.

"Defence is no game. We know it's not always pretty. But if we have to take part, I'd rather spend the money here than send it abroad," said the Foreign Minister.

LuxDefence merges defence businesses

Monday also saw the official launch of the LuxDefence association, a collective of Luxembourg companies operating in the defence sector, with André Wilmes as its first president.

Wilmes concluded that "at the end of the day, it is one of the ten recommendations which came out of the Chamber of Commerce in the May report of Lux4Defence. Among other things, the requisitions were identified, such as that Luxembourg needs to support the industry more, merge more businesses and coordinate better."

One of the major challenges is bringing together the many high-end technologies that exist in Luxembourg, Wilmes says.

'It's not just a percentage, it's about how you defend yourself'

Backes said it would be realistic to reach the two percent target for military spending in the short term, with a plan being in place. However, she added that they would still have to see what conclusions are drawn at the upcoming NATO summit in The Hague.

"I think I've said several times already that what matters to us are the capabilities needed in NATO to ensure credible deterrence and to be able to defend ourselves. One can put a percentage on it, yes, but you don’t defend yourself with percentages."

It’s with capabilities that defence happens, and Luxembourg will contribute in this regard, the Defence Minister said.

A more detailed report will be broadcast on Monday evening in RTL's Journal, and more articles on the major aviation fair in Le Bourget are expected in the coming days.