Yuriko Backes presents Luxembourg's defence spending roadmap to 2029

On 20 May 2026, following the Prime Minister's announcement during the State of the Nation address, Minister of Defence Yuriko Backes presented the updated trajectory for Luxembourg's defence spending.

During a joint meeting of the Committee on Defence, the Committee on Foreign and European Affairs, Cooperation, Foreign Trade and the Greater Region, as well as the Luxembourg delegation to the NATO Parliamentary Assembly, Minister Backes informed Members of Parliament that the Government Council had decided on an annual increase of +0.1% in defence spending through to 2029.

According to the latest Statec estimates for the evolution of gross national income (GNI), the trajectory is as follows (it should be noted that only the percentages have been formally agreed, while the amounts in millions of euros are based on current GNI estimates and may therefore change in line with future forecasts):

"This increase in defence spending is a measured response to the challenges arising from the current geopolitical context. It is also a decision that reflects Luxembourg's national circumstances," Yuriko Backes underlined.

Luxembourg's new defence trajectory is fully aligned with the commitment made by all NATO Allies at the Hague Summit in June 2025 to invest 5% of GDP (or GNI in Luxembourg's case) in defence by 2035. This includes 3.5% for core defence spending and 1.5% for broader defence- and security-related expenditure. Ahead of the Ankara Summit next July, Allies are expected to present credible pathways showing how they intend to progressively meet the Hague commitment and translate these financial commitments into concrete military capabilities and forces.

Given that NATO plans to review the defence spending trajectory and the distribution of defence expenditure in 2029 in light of developments in the strategic environment, and that Luxembourg will also receive new capability targets from NATO that same year, the government has decided to define the trajectory only up to 2029. This decision also reflects the fact that legislative elections will take place in Luxembourg in 2028 and is intended to allow the next government to determine the trajectory beyond 2029 in line with future developments.

"These investments strengthen both our national defence and Europe's collective security. This is not about engaging in an arms race. It is about building credible capabilities that contribute both to the defence of our country and to collective defence," the Minister of Defence stated.

The new trajectory includes significant investment in Luxembourg's capability targets, notably the establishment of the Belgian-Luxembourgish binational combat reconnaissance battalion and future integrated air and missile defence capabilities. It also includes investment in high-value projects with significant economic benefits, particularly in the space and cyber sectors. In line with Luxembourg's Defence Industry Strategy, a strong emphasis will be placed on financing research and development in the identified priority areas.

Continued military support for Ukraine remains another central pillar of the trajectory and of the strengthening of European defence. "Europe's defence begins in Ukraine, and this plan reaffirms Luxembourg's full solidarity with the people and armed forces of Ukraine," Minister Backes concluded.