Belgium’s Budget Minister Vincent Van Peteghem has voiced concern that a significant increase in defense spending could negatively impact the country’s social welfare system. The report comes from Politico.
According to the minister, priority must be given not only to national defense but also to the long-term sustainability of the welfare state.
Every euro of deficit today is a euro of debt tomorrow — and that debt will eventually turn into either higher taxes or cuts to social services, he stated.
His remarks came after the Belgian government decided to raise defense spending to 2% of GDP — a target NATO has been urging its members to meet for over a decade. Van Peteghem noted that Belgium plans to invoke a special clause approved by the European Commission that allows for temporary fiscal flexibility, and also intends to use part of the €150 billion in loans made available by the EU.
Additionally, Belgium will ask NATO to count regional infrastructure investments — such as road and bridge construction — as part of its defense spending.
Earlier in April, U.S. Senator Marco Rubio called on NATO allies in Brussels to boost their defense budgets, even if it means cutting back on social programs.
Meanwhile, Italy is preparing to unveil a plan to increase military spending, and Spain is set to allocate an additional €2.08 billion to defense procurement in 2025 through budget reallocation.
