Brussels — Belgian Budget Minister Vincent Van Peteghem has endorsed accelerating defence investments to reach 2% of the nation’s GDP by this summer, aligning with NATO standards.
Speaking on VTM on Sunday, Van Peteghem warned that such a move would necessitate compensatory financial measures due to the already high public debt.
“Any debt we incur today adds to the public debt, which is already high,” he cautioned, highlighting the delicate balance between bolstering security and maintaining fiscal discipline.
The current timeline, set by the De Wever government, aims to increase defence spending to 2% of GDP by 2029 and 2.5% by 2034.
Achieving this goal would require a substantial budgetary commitment of 17.2 billion euros over the next four years, according to the CD&V Deputy Prime Minister’s calculations.
However, international developments have rendered this timeline outdated, prompting calls for more immediate action.
Van Peteghem’s remarks come on the heels of European Commission President Ursula von der Leyen’s “Rearm Europe” plan, which seeks to support member states by exempting certain defence expenditures from the calculation of public deficits and debts. This initiative is seen as a potential lifeline for Belgium’s accelerated defence ambitions.
Asset Sales and Savings to Offset Costs
To fund the increased defence spending, Van Peteghem confirmed the possibility of selling state assets, a measure that Defence Minister Theo Francken of the N-VA has advocated to finance a dedicated defence fund.
Additionally, the Budget Minister suggested that “additional savings efforts” and revenues from frozen Russian assets could contribute to covering the costs.
He also indicated plans to request a “small share of the effort” from federal entities to ensure a collective contribution towards bolstering national security. This approach aims to distribute the financial burden more evenly across different sectors of government.
Government Bond Proposal Under Consideration
In response to Francken’s proposal of issuing a government bond to finance the military investments, Van Peteghem expressed cautious optimism.
He acknowledged that such a bond could potentially generate the necessary funds, recalling his own experience of raising 22 billion euros through a similar initiative under the previous government. However, he also emphasized the need for caution, reminding that “private investors must eventually be repaid.”
The debate over defence spending has intensified amid growing security concerns in Europe, with several EU countries revisiting their military budgets in light of recent geopolitical tensions.
The Belgian government’s move to accelerate its defence investments reflects a broader shift towards strengthening military capabilities across the continent.
As discussions continue, the balance between maintaining fiscal responsibility and ensuring adequate defence funding remains a central challenge for Van Peteghem and the federal government. The outcome of these deliberations will be closely watched both within Belgium and among its NATO allies.
