Francken wants to buy new F35s, but may soon have to look for additional money

Belgium Aims to Boost Defense Spending to Meet NATO Targets

While the new belgian federal goverment prioritizes savings in many areas,defense spending is seeing a significant increase. This is largely driven by the international threat posed by Russia adn Belgium’s historical lag in meeting NATO’s recommended defense spending target. NATO member countries are required to allocate at least 2 percent of their GDP to defense, a goal Belgium currently falls short of, sitting at 1.3 percent.

defense Minister Theo Francken (N-VA) is steadfast to raise spending to 2 percent during this legislative term. Concrete plans are being finalized, with the rollout set for June. The government plans to invest approximately 4 billion euros annually to achieve this goal.

About 1 billion euros will be directly allocated in the budget through cuts in other areas. Additionally, a defensive fund established within the coalition agreement is expected to yield 2.4 billion euros over the coming years. This fund, housed within the investment vehicle FPIM, will aim to generate revenue through dividends from holdings in companies like Belfius. The government also intends to divest from certain holdings, with rumors circulating about potential sales of shares in BNP Paribas and Ethias.

“It is indeed too little too late anyway,” states Jasper Pillen (Open Vld), a defense expert in the opposition. “with the current plans,the government will not reach the 2 percent target. More funding is needed.”

However, Francken is actively exploring other avenues besides direct financial injections. He plans to work with regions to identify investments that could contribute to the NATO spending target. “I will look at the regions to see if they can make efforts that we can count as a contribution for the NATO standard,” he told Time Magazine this weekend.

These efforts could include initiatives like constructing harbor defenses or enhancing regional security measures. Francken’s approach seeks to maximize resources and leverage regional capacities to bolster Belgium’s defense posture effectively.

This shift in defense policy highlights Belgium’s growing awareness of the evolving geopolitical landscape and the need for a robust military presence. while the road ahead may be challenging, the government’s commitment to bolstering national security through increased spending and regional collaborations signals a new era in Belgium’s defense strategy.

Given BelgiumS commitment to reaching NATO’s 2% GDP defense spending target, how will the goverment ensure openness and accountability in the allocation and utilization of these increased defense funds?

Belgium’s Defense ambitions: Interview with Minister Theo Francken

archyde News recently sat down with Belgian Defense minister Theo Francken (N-VA) to discuss the nation’s plans to boost defense spending and meet NATO targets. here’s what he had to say:

minister Francken, Belgium’s new government is committed to increasing defense spending. What led to this change in priority?

Minister Theo Francken: “The evolving geopolitical landscape, particularly the growing threat from Russia, has underscored the need for a robust military presence. belgium, like many NATO allies, has fallen short in defense spending, and it’s time we address this imbalance. Our commitment is to reach NATO’s recommended 2% of GDP by the end of this legislative term.”

Can you walk us through the planned spending increases and sources of funding?

Francken: “We’re planning to invest approximately 4 billion euros annually. About 1 billion euros will be directly allocated in the budget, with cuts made in other areas. Additionally, we’re tapping into a defense fund established within the coalition agreement, which is expected to yield 2.4 billion euros over the coming years. This fund will generate revenue through dividends from holdings in companies like Belfius, and we’re also exploring potential divestments, such as shares in BNP Paribas and Ethias.”

Though, defense expert Jasper Pillen from the opposition party Open Vld, argues that these plans may not be enough to reach the 2% target. What’s your response to that?

Francken: “I respect Mr. Pillen’s view, and it’s true that meeting this challenge will be complex. But we’re actively exploring other avenues too. We’re working with regions to identify investments that could contribute to the NATO spending target, such as harbor defenses or enhanced regional security measures. Our approach is to maximize resources and leveraged regional capacities to bolster Belgium’s defense posture effectively.”

In an era of austerity and budget cuts, how do you justify this increased spending on defense?

Francken: “National security is a core function of the state, and investing in defense is not just about meeting NATO targets, but also about ensuring Belgium’s sovereignty and territorial integrity. We’ve reached a point where underinvestment in defense is no longer lasting. That’s why we’re prioritizing this spending, while also watching expenses in other areas.”

minister, what message do you have for those who argue that increased defense spending may deter Belgium’s progress in other areas, such as healthcare and education?

Francken: “Increased defense spending is not an ‘either-or’ situation. We’re committed to balancing our budget duty while ensuring our defense capabilities keep pace with the evolving security surroundings. It’s crucial we invest in our future, and that includes both our military and other sectors that drive our nation’s prosperity.

Do you agree with Minister Francken’s approach to balancing defense spending and NATO targets? share your thoughts in the comments below.