Gov't to give Dutch defense industry a €1.1 billion boost
The government is planning to push 1.1 billion euros into the defense industry and offer companies in the sector more long-term contracts and certainty. The goal is a rapid scaling up of defense production in these uncertain times, RTL Nieuws reports from a still confidential Defense Strategy drawn up by Defense Minister Ruben Brekelmans and Minister Dirk Beljaaarts of Economic Affairs.
Now that the United States is withdrawing its support from Europe, the Netherlands and other EU member states need to take more responsibility for their own security, the Ministers wrote. “Urgency is required,” they said. “We are not living in war, but also no longer in peace. These historical times do not require gradual scaling up and growth, but an impulse and courage to change.”
That means big investments in the defense industry. “An important factor on the battlefield is who can produce the most, innovate the fastest, and sustain the longest,” the Ministers wrote. “It is essential to be stronger in this than our opponents.” The Dutch defense industry needs to produce more of everything.
To stimulate the Dutch and European defense industries, the Dutch government will more often opt for equipment of Dutch or European manufacture. The government is also pushing 1.1 billion euros into helping companies who want to develop new defense equipment and supporting companies that struggle to obtain financing. Earlier this week, FD reported that Defenture, the Dutch manufacturer of advanced combat vehicles, narrowly escaped bankruptcy due to cashflow problems.
The Ministers say they understand that companies hesitate to set up new production lines due to the massive investment that requires. The Ministry of Defense therefore wants to conclude long-term contracts more often to give companies the certainty that their products will be purchased for years to come.
Last year, the Belgian government concluded a 20-year contract with the Belgian arms manufacturer FN Browning for the purchase and maintenance of small arms. Defense Minister Breukelmans wants to give Dutch companies similar contracts and long-term certainty.
Defense also wants to further intensify cooperation with Ukraine, which has gained a lot of quick battlefield experience in the past years. According to the Ministers involved, there is much that the Dutch armed forces can learn from this.
