At the start of the week, NATO Secretary General Mark Rutte spoke at the Parliamentary Assembly of the North Atlantic Alliance, stating that member states must spend five percent of GDP on defence. Gusty Graas, Chairman of the Committee on Foreign Affairs and DP (Democratic Party) deputy, was present in Dayton, USA.
The conclusion from the debates in Dayton was that “the situation is serious.” Mark Rutte’s message was clear – defence must continue to be strengthened. And, according to Graas, Luxembourg has understood that message: “We have made efforts here in Luxembourg in recent years, but that is certainly not enough. In the coming years, we will have to contribute even more.”
Under the previous government, defence investment had already increased. Just two weeks ago, Prime Minister Luc Frieden announced that defence spending should reach two percent of gross national income (GNI) this year – instead of by 2030, as originally planned. In June, a NATO summit will take place, and Gusty Graas says: “That’s where the decision will essentially be made – and I’m already convinced that the message will be that countries must make additional efforts. Mr. Rutte clearly said it – he mentioned five percent.”
How quickly should this happen? That timeline is still to be decided: “2032 was mentioned at one point. But it’s clear that we can no longer stick with just two percent.” Two percent of GNI would be €1.18 billion this year. Without considering future GNI growth, military spending would therefore have to rise to around €3 billion in the medium term to meet the five percent target.
Gusty Graas states: “We have to be honest. This will lead to many, many discussions in all countries – including here in Luxembourg. But in the long term, I fear this is a goal we won’t be able to avoid.” At the latest, during the budget debates next autumn, it will be necessary to assess where that money is being invested.
The NATO summit in June could mark the date where the decision to more than double defence spending will be agreed upon by member states.
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