Belgium supports the European Commission’s idea to grant member states additional budgetary space for defense spending, but other financing options should also be considered. This was said by Budget Minister Vincent Van Peteghem on the sidelines of a meeting with his colleagues from other eurozone countries.
“We strongly support the European Commission providing the opportunity within the European budget rules to allow more space for defense investments,” said Van Peteghem. “But it cannot stop there. We must also look at other possibilities, such as a common European financial instrument, but also at more investments in the European defense industry. The role of the European Investment Bank will also be very important.”
To stimulate defense investments, the Commission wants to utilize all possibilities within the European budget framework to keep these expenditures as much as possible outside the calculation of the budget deficit. The Commission did not provide details this week either. Commissioner for Economy Valdis Dombrovskis promised to come up with concrete proposals “in the coming weeks.” “We are ready to act quickly.”
Whatever the modalities will be, it is welcome news for a country like Belgium. The country is in the penalty box due to a budget deficit exceeding the European norm of 3 percent and must simultaneously make significant investments in defense to meet the NATO target as quickly as possible. This currently dictates that member states spend 2 percent of their GDP on defense, but it is expected that this norm will be adjusted upwards.
