The Netherlands aims to raise defence spending to 3.5% of GDP

The caretaker Dutch government has agreed to raise its defence budget to 3.5% of gross domestic product (GDP), a move described by acting defence minister Ruben Brekelmans as a “historic decision” that strengthens the armed forces and national security.

In addition, the government wants to spend a further 1.5% of GDP on projects that support defence capabilities, such as cybersecurity and infrastructure improvements. This broader effort is being framed as “general resilience”.

The decision, taken by the caretaker cabinet made up of the VVD, NSC and BBB, is in line with Nato secretary-general Mark Rutte’s call for member states to spend 5% of their GDP on defence-related commitments. The current Nato norm is 2%, which the Netherlands only just meets.

“It’s important that we get our security in order and reinforce the military,” said Brekelmans, who has been pushing for the Netherlands to support Nato’s position ahead of the alliance’s summit in The Hague later this month.

Cost not yet covered

The caretaker cabinet is free to put forward new policy initiatives but it is unclear if it can count on majority support  in parliament. The largest opposition party, GL–PvdA, has not commented publicly and the far-right PVV, which pulled out of the coalition earlier this month, does not support a boost in defence spending.

MPs will debate the matter on Tuesday.

The cost of the extra spending has been estimated at between €16 billion and €19 billion per year, but the caretaker government has not yet decided how it will be financed. “

We have the coming years to find an answer to that,” said Brekelmans, adding that it will be up to the next cabinet to finalise funding plans.

Rutte has repeatedly urged Nato’s 32 member states to raise their defence budgets and a formal agreement to target 3.5% of GDP is expected to be adopted at the summit in The Hague later this month.