On Wednesday 20 May 2026, following the Prime Minister's State of the Nation address, Luxembourg's Minister of Defence, Yuriko Backes, presented details of the evolving trajectory of Luxembourg's defence spending.
According to the Directorate of Defence, during a joint meeting of the parliamentary Defence and Foreign Affairs committees, as well as the Luxembourg delegation to the NATO Parliamentary Assembly, Minister Backes informed deputies (MPs) that the Government Council had decided on an annual increase in defence spending of 0.1% per year until 2029.
Based on the latest STATEC estimates of the evolution of Gross National Income (GNI), the defence spending trajectory is as follows (only the percentage targets have been fixed; the corresponding amounts in millions of euros were calculated based on GNI estimates and may change depending on future projections):
2027
GNI: €65,374 million
Defence trajectory +0.1%: 2.1%
Defence expenditure: €1,373 million
2028
GNI: €68,769 million
Defence trajectory +0.1%: 2.2%
Defence expenditure: €1,513 million
2029
GNI: €72,375 million
Defence trajectory +0.1%: 2.3%
Defence expenditure: €1,665 million
"This evolution of defence spending is a reasonable response to the challenges arising from the geopolitical context. It is a decision that also duly takes into account the national reality," Minister Backes said.
According to the authorities, Luxembourg's new defence trajectory is fully aligned with the commitment made by NATO Allies at the Hague Summit in June 2025 to invest 5% of GDP (GNI for Luxembourg) in defence by 2035, including 3.5% for core defence and 1.5% for broader defence and security-related expenditures. In preparation for the Ankara Summit in July 2026, Allies are expected to present a credible trajectory for progressively achieving the Hague commitment and translating it into concrete military capabilities and forces.
Given that NATO plans to review the trajectory and allocation of defence spending in 2029 in light of the evolving strategic context, and that new capability targets will be assigned to Luxembourg by NATO that year, the government has decided to set its defence spending trajectory only up to 2029. This also takes into account the fact that parliamentary elections will be held in Luxembourg in 2028, allowing the next government to define the post-2029 trajectory.
"We are thus investing in our national defence and in a stronger Europe. This is not about engaging in an arms race. It is about establishing credible capabilities that contribute to the defence of our country and to collective defence," Minister Backes stated.
The trajectory foresees not only significant investments in Luxembourg's capability objectives, including the establishment of the Belgian-Luxembourg binational combat reconnaissance battalion and future integrated air and missile defence capabilities, but also high-value-added projects with strong economic returns, for example in the space and cyber domains. In line with Luxembourg's Defence Industry Strategy, emphasis will be placed on funding research and development in priority areas.
Continued military support for Ukraine remains another central pillar of the trajectory and of strengthening European defence. "The defence of Europe begins in Ukraine, and this plan reaffirms our full solidarity with the people and armed forces of Ukraine," Minister Backes concluded.
