© AFP
Luxembourg's new defence industry association LuxDefence is gaining rapid interest at home and abroad, while officials push for an updated weapons law as Defence Minister Yuriko Backes confirms that weapons production is already legally permitted.
At the official launch of LuxDefence on Monday evening, Defence Minister Yuriko Backes stressed that democracies cannot rely on others to defend themselves.
LuxDefence is a new association created by the Chamber of Commerce together with companies active in defence, security, technology, and dual-use sectors. Dual-use refers to goods that can be used for both civilian and military purposes. According to those involved, the initiative is already attracting considerable interest.
More than 80 companies have joined the association so far, out of roughly 110 that could potentially qualify, according to those involved. The efforts under way in Luxembourg are also being noticed abroad, where observers have reportedly expressed surprise at the speed and scale of developments.
LuxDefence president André Wilmes explained that he regularly receives calls from abroad praising the rapid progress being made in Luxembourg. He noted that several ambassadors and representatives of major international companies attended the launch, including industry figures who travelled from as far as Italy specifically for the event, which he sees as a sign that the platform is gaining real visibility for international cooperation.
Chamber of Commerce Director General, Carlo Thelen, confirmed there is foreign interest in forming partnerships. Luxembourg, he said, is known for short decision-making channels, strong expertise and solid financing: all factors that make the country attractive for defence-related collaboration.
However, he warned that an updated weapons law is urgently needed. He argued that the current legislation is incompatible with the export of certain materials, which creates obstacles for Luxembourg companies seeking to export or enter international partnerships. In his view, it also discourages foreign investors who might otherwise consider setting up operations in Luxembourg but are put off by outdated regulations.
Defence Minister Yuriko Backes responded that work on a revised legal framework is already under way. She added that, following a government assessment, Luxembourg's current legislation does not actually prohibit weapons manufacturing. Since anything not explicitly forbidden is permitted, companies already have a degree of flexibility, she said. Even so, she stressed the need for a clear legal framework so that businesses know precisely what conditions will apply in the future. According to her, the drafting of the new law is progressing quickly.
Backes clarified that the lead on the legislation lies with her colleague, Economy Minister Lex Delles, who is already working intensively on the bill. Companies within LuxDefence now await the results.
