Luxembourg’s Defence Spending Set to Exceed €13 Billion by 2035

Luxembourg is preparing for a major rise in defence spending over the next decade as it works to meet NATO’s new target. At the Hague summit in June, alliance members committed to investing at least 5% of GDP in defence by 2035. Due to its unique economic structure, Luxembourg secured an adjustment—its benchmark will be 5% of gross national income (GNI) instead.

According to the National Council of Public Finances, Luxembourg’s defence budget has already grown significantly—from €190 million in 2014 to an estimated €728 million in 2024, marking a 383% increase and a rise from 0.51% to 1.29% of GNI.

To hit the 5% GNI goal by 2035, defence spending will need to reach €4.63 billion annually, representing an additional €13.35 billion in total investment between 2025 and 2035.

The figures underline Luxembourg’s ongoing commitment to bolstering its military contribution, even as the financial effort ahead remains substantial.

Join the community of your own - #1 home-grown LuxExpats app
SignUp Free : luxembourgexpats.lu