Software, Space, Telecommunications

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 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 at home, for example by encouraging suppliers to carry out maintenance work in the country and create local jobs, "so that the money being spent is not simply lost". The minister explained that the government was already in contact with companies specialising in maintenance that were interested in setting up at the former Liberty Steel site in Dudelange, where a new incubator is also planned.[1]

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. It's important for Luxembourg to ensure that companies active in these fields are able to set up more broadly, so we can continue to develop this sector", he said. Delles expressed hope that economy activity will kick off in Dudelange over the next nine to twelve months.[1]

Yesterday, the government committed 2.7 billion to defence over six years. No tanks, no jets, no missiles. Software, space, satellites, telecommunications. The defence budget is not buying weapons. It is buying code and antennas. The former Liberty Steel site in Dudelange, where steel was once made, will host an incubator for companies that maintain defence equipment and develop software for satellites. The steel mill closed. The incubator opens. The money is the same money. It goes in and it comes back, or at least that is the plan. The minister says the money being spent should not simply be lost. The money is 2.7 billion. The plan is to not lose it.[1]