For 2028, the Grand Duchy's defence budget will increase to 2.2 percent, and to 2.3 percent the following year. These figures were presented by the DP's Minister of Defence, Yuriko Backes, to MPs on the Defence Committee at the Krautmaart.
Backes said there is still time to reach the 5 percent target by 2035, which NATO members set themselves at the summit in The Hague in June this year.
Among other things, the budget for the army will increase by 14 percent next year from 198 to 226 million euros. This increase is primarily due to recruitment and the increase in spare parts and ammunition, according to a statement on the Chamber's website.
A large amount has been invested into the so-called military equipment fund, namely 568 million euros. This fund also finances major projects such as GovSat-2 or drone defence systems. At the request of MPs, Backes also explained that her ministry is working with the Ministry of Economic Affairs and Higher Education to direct this expenditure in such a way that the national economy also benefits from it.
