Luxembourg will raise defence spending by 0.1 percentage points of GNI each year through 2029. The roadmap translates into estimated outlays of ?1.373 billion in 2027, ?1.513 billion in 2028 and ?1.665 billion in 2029.
Researchers at the University of Luxembourg are testing AI-controlled drone swarms that could one day protect defined airspace around critical infrastructure.
Washington will withdraw roughly 14% of its troop presence in Germany following Chancellor Friedrich Merz's criticism of US Iran-war strategy, in a move that has rattled NATO allies.
On 30 April 2026, the Frieden government launched the FND, a five-year €150 million vehicle backing innovative defence and dual-use companies, jointly funded by FSIL, the State and SNCI.
The 2026 defence budget reaches roughly €882 million (1.43% of GNI), with NATO's 2% target now expected to be met around 2026 and a 5% trajectory under consideration by 2035 — accelerated, possibly, before this June's NATO summit.
The Grand Duchy is opening its growing defence budget to private savers, with a new sovereign bond whose interest income is exempt from personal tax.
Armed forces from Germany, Austria, Ireland, Latvia, Singapore and Switzerland joined the 2026 edition of Cyber Fortress, with strategic communications and disinformation now integrated into the scenarios.
The Chamber of Deputies has greenlit a €301 million package to build, launch and operate a second sovereign government and defence communications satellite, deepening the LuxGovSat joint venture with SES.
Speaking at Harvard's Center for European Studies, Luxembourg's Prime Minister called for a more autonomous Europe — on defence, energy and capital markets — without burning bridges with Washington.