Belgium wants welfare cuts to achieve NATO target
(MENAFN) Belgium is preparing to increase its military budget to meet NATO's defense spending benchmark of 2% of GDP, potentially at the expense of its social welfare programs, according to Budget Minister Vincent Van Peteghem.
Speaking to the Financial Times on Wednesday, Van Peteghem revealed that the government will boost military spending through temporary funding injections, accounting maneuvers, and long-term structural reforms. Currently, Belgium spends around 1.31% of GDP—roughly €8 billion ($8.5 billion)—on defense, but had originally planned to reach the 2% mark by 2029. That timeline has now been accelerated to 2025.
This adjustment comes amid growing pressure from the U.S. and ahead of NATO’s upcoming summit in June, where allies may consider raising the military spending goal to over 3% of GDP. U.S. President Donald Trump has pushed for even more ambitious targets, suggesting NATO members should contribute 5% of GDP or risk losing American protection.
The planned defense budget increase has raised concerns in Belgium over its impact on public services. February saw over 100,000 people protest in Brussels against proposed social spending cuts. Van Peteghem warned that the additional military expenses will likely result in austerity measures such as reduced unemployment benefits, pension reforms, and new tax policies. Privatization of state-owned assets and increased public debt are also being considered to close the funding gap.
The European Commission has recently proposed exempting military expenditures from its fiscal rules and offering €150 billion in loans as part of its “ReArm Europe” plan, which seeks to mobilize €800 billion for defense through incentives and borrowing. Van Peteghem confirmed that Belgium intends to use both mechanisms to meet its defense obligations.
Other EU countries are following suit—France has announced €5 billion in budget cuts, with a portion expected to go toward defense.
Meanwhile, Russia has strongly criticized the EU’s growing military focus. Kremlin spokesman Dmitry Peskov called the buildup alarming, warning that it is clearly directed at Moscow.
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