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Luxembourg Strengthens NATO Role with €2.6 Billion Modern Armored Vehicles Program.
On May 31, 2024, Luxembourg approved a historic €2.6 billion investment to modernize its armed forces, an ambitious program that demonstrates its commitment to NATO and the European Union. Passed by a significant majority in Parliament, this plan includes the acquisition of new combat vehicles to enhance the country’s operational capabilities and support military cooperation with Belgium.
The vehicles to be procured include 16 Griffon multi-role armored vehicles, 38 Jaguar armored reconnaissance vehicles, and 5 Serval armored reconnaissance vehicles, in addition to the recently delivered Command Liaison and Reconnaissance Vehicles (CLRV). These vehicles will gradually replace the currently operational Dingo and Hummer vehicles, marking a significant leap in capabilities for the Luxembourg Army. This fleet will enhance the army's operational readiness and ensure interoperability with NATO and European Union forces, particularly with those of Belgium and France.
This upgrade not only aims to strengthen Luxembourg's military capacity but also to align with its existing assets, such as the CLRV vehicles acquired in 2022. Full integration of the new vehicles with the army’s existing systems is expected by 2025, aligning with the French Scorpion program to ensure enhanced operational synergy.
This investment also facilitates the creation of the binational Belgian-Luxembourg combat reconnaissance battalion, a key initiative aimed at reinforcing military cooperation between the two countries. Integrated into the French SCORPION program, the battalion will be headquartered in Arlon, Belgium, with detachments in Diekirch, Luxembourg, and Marche-en-Famenne, Belgium. This collaboration, as part of a broader European integration strategy, underscores the commitment of both nations to address regional security challenges jointly while fulfilling NATO obligations. The project also enhances interoperability between Luxembourg and Belgian armed forces, enabling joint deployments and supporting multinational missions.
The Luxembourg Army, comprising approximately 900 soldiers, operates with a focus on flexibility and interoperability within international frameworks. Its maneuver capabilities are centered on reconnaissance forces, which include two reconnaissance companies. One company is integrated into the Eurocorps and a Belgian division, while the other is part of NATO's pool of deployable forces, underscoring Luxembourg's active participation in multinational defense collaborations.
Luxembourg, despite its small size, boasts a dynamic economy with a gross domestic product (GDP) estimated at $85.76 billion in 2023, according to World Bank data. This remarkable economic performance places the country among the world's most prosperous on a per capita basis. However, Luxembourg has historically allocated a modest share of its GDP to defense, with only 0.58% spent in 2022, making it one of the lowest spenders within NATO in military terms. This budgetary approach is now undergoing significant change, as the government has announced ambitious plans to gradually increase defense spending to 1% of GDP by 2028, with a potential goal of reaching 2% of gross national income (GNI) by 2030. This shift reflects a direct response to rising geopolitical tensions.
Luxembourg's current arsenal includes 48 Dingo 2 4x4 armored vehicles, demonstrating its capacity for protected mobility and reconnaissance missions. The army’s anti-tank capabilities are bolstered by MANPATS NLAW and TOW missile systems, providing robust anti-armor and anti-infrastructure capabilities. Additionally, Luxembourg maintains an artillery component with six 81mm mortars, supporting indirect fire missions.
With the addition of these new vehicles, the Luxembourg Army’s operational capabilities will be significantly enhanced. These advanced systems will modernize tactical mobility, troop protection, and firepower while improving connectivity on the battlefield with cutting-edge communication technologies. The vehicles will provide greater versatility for a wide range of missions, from reconnaissance to urban or hostile environment operations, ensuring optimal safety for soldiers.
This modernization aligns with Luxembourg’s strategic objective to increase its contribution to collective defense within NATO and the European Union. Defense Minister Yuriko Backes emphasized that this investment reflects the country’s commitment to equipping its armed forces with the necessary resources to meet current and future challenges. Through this program, Luxembourg positions itself as a reliable and cooperative partner while laying the foundation for a modern army ready to address the security challenges of the 21st century.