The grand duchy has been increasing defence spending, but still spends proportionally less than most EU and Nato members. Pictured: Luxembourg Army A400M aircraft seen during the Afghanistan evacuation operation, 20 August 2021. Photo: Rein Van den Bergh / Belgian Defence

The grand duchy has been increasing defence spending, but still spends proportionally less than most EU and Nato members. Pictured: Luxembourg Army A400M aircraft seen during the Afghanistan evacuation operation, 20 August 2021. Photo: Rein Van den Bergh / Belgian Defence

The grand duchy has the second lowest level of defence spending in the EU, according to figures published this week.

Luxembourg allocated 0.4% of its GDP to defence in 2019 and 2018. Among EU members, only Ireland (0.2% of GDP) dedicated less of its economy to military spending.

Estonia (2.1%), Greece (2%) and Latvia (1.9%) spent the most on defence, Eurostat, the EU’s statistics bureau, on Monday.

Nato members are meant to budget 2% of their economies to military and security. Luxembourg has fallen short of this target for years, which often leads to .


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The country’s military spending has risen slightly in recent years. According to Eurostat, Luxembourg earmarked 0.3% of its GDP on defence from 2013 to 2017.