Not Tanks

After presenting the new legal framework for Luxembourg's defence industry last week, Economy Minister Lex Delles said he hoped increased investment in the sector would also generate financial returns for the state. Delles noted that several companies were already active in the defence industry in Luxembourg, but said the existing rules did not provide sufficient clarity. A 2022 law allows the production of sporting weapons, but it does not cover every area. The new law will establish a clearer framework.[1]

The government is also planning to expand the sector further. While NATO spending targets have prompted Luxembourg to increase its defence investment, Delles said the authorities also hoped the spending would deliver economic benefits. He wants suppliers to carry out maintenance work in the country and create local jobs, "so that the money being spent is not simply lost."[1]

The government is already in contact with companies specialising in maintenance that are interested in setting up at the former Liberty Steel site in Dudelange, where a new incubator is also planned. But Delles ruled out any fighter jet, tank, or missile manufacturers establishing themselves in Luxembourg. "We're looking more at software, space, satellite capacities, telecommunications, all sorts of sectors," he said. Delles expressed hope that economy activity will kick off in Dudelange over the next nine to twelve months.[1]

Not tanks. Not jets. Not missiles. Software, space, satellite capacities, telecommunications. The former Liberty Steel site in Dudelange is where the government wants defence companies to set up. Liberty Steel was steel. The new tenants will not make steel. They will make software for satellites. The money being spent on defence, Delles says, should not be "simply lost." It should create jobs. It should create maintenance work. It should create an incubator. The NATO target says spend more. The economy minister says spend it here. The defence industry says no tanks. Luxembourg is not building weapons. It is building the software that weapons use. The distinction matters to some people. To others, it does not.[1]