All Nato members in 2014 pledged to “aim to move towards” spending 2% of their GDP on defence “with a view to fulfilling Nato capability priorities.” Luxembourg since 2013 has upped its defence spending from 0.3% of GDP to 0.6% and on Friday presented plans to get to 1% over the next five years.
“We’re meeting the commitment to move into the direction of 2% but within the specificities of Luxembourg,” said Bausch (déi Gréng) during a press conference. The current system penalises Luxembourg, which has a high GDP compared to its size and that of its army, which counts around 900 active soldiers and is the smallest of all Nato members.
A joint Luxembourg-Belgium army battalion forms a key part of the spending plans, although general and chief of defence Steve Thull said it’s too early to give a detailed budget as plans are still being developed. Around 100 people will need to be hired within the army, he said, with other troops reassigned as part of the joint unit.
Luxembourg also wants to develop capabilities in intelligence, surveillance and reconnaissance, air transport, space and cybersecurity. For example, Nato airborne early warning and control planes--known as Awacs--will need to be replaced in the coming years.
It’s a considerable effort that Luxembourg is planning to make.
Luxembourg recently signed a letter of intent to support the development of solar-powered drones, and will continue investing in unmanned aerial vehicle technology for observation and surveillance purposes. It plans to introduce projects on clear space as well as refurbishing military infrastructure, also with a view to reducing the army’s carbon footprint.
From €573m budgeted for defence in 2023, spending will rise to €994m in 2028. Compared to previous spending plans, this marks an increase of €278m in 2028 and €793m for the five years from 2024 to 2028. “It’s a considerable effort that Luxembourg is planning to make,” said Georges Campill of the army and department of defence (DoD).
The ministry and DoD will be looking to hire between five to ten people to help develop and manage the new projects, Bausch said.
Nato discussion
“If we wanted to reach the 2% we would have to make an effort that’s unrealistic and that we wouldn’t be able to manage,” said Bausch. Per capita, Luxembourg ranked 10th among Nato members in terms of spending last year, with 19 other members spending less when measured by population rather than their economies.
Latvia, which spends 2.14% of GDP on its military, would have to spend six times more on defence if it had Luxembourg’s gross domestic product, Bausch said. “It’s not just about spending money,” the minister said, adding that the projects must serve Nato and help improve security. Simply spending more money won’t achieve this goal, he said.
Nato members will meet for a summit in Madrid in June, where the 2% target will be discussed. While some countries are pushing for more spending, Bausch said he wants the current aim “to move in the direction of 2%” preserved, but also that Nato takes a wider view of defence spending.
Luxembourg is currently funding an environmental peacekeeping project in the Sahel to help prevent resource conflicts. Bausch has long pushed for environmental spending to play a greater role under Nato criteria. The organisation has recognised climate change as a security risk but said “there’s a long way to go” for members to agree on what this means for their defence spending bills.