Belgium is already doing a lot, but the country should invest more in defence as soon as possible says NATO secretary-general Mark Rutte. Mr Rutte was speaking with VRT News on the sidelines of the World Economic Forum in Davos (Switzerland). But how much? ‘First around 2 per cent of GDP and then even more.’ In Davos, the threat of war is one of the main topics of discussion between business leaders and politicians.
In 2006, members of the Western military alliance NATO decided to spend at least 2 per cent of their GDP on defence. GDP is the sum, in monetary value, of all goods and services produced in a country in the course of a year. Only a limited number of countries meet that target. Belgium has been dangling pretty much at the bottom of the ranking for some time.
It is even possible that the NATO investment target will be raised even further. At the end of last year people close to US President Trump suggested that NATO countries may soon have to invest 5 per cent of their GDP in defence.
In a brief interview with VRT NEWS, NATO chief Rutte now reveals that he hopes Belgium will ‘get to the agreed 2 per cent as soon as possible’ by investing substantially more in defence. At the same time, as far as Rutte is concerned, that is not the end of the investment story. ‘First the target is around 2 per cent, after that we will have to do more,’ he says.
Threat from Russia
The threat of war is one of the main topics of discussion between business leaders and politicians in Davos. The ongoing threat from Russia is the main focus.
‘We no longer live in peacetime. We are currently somewhere between war and peace,’ says Jacques Vandermeiren, the CEO of the port of Antwerp-Zeebrugge. He is concerned about ‘acts of war’ at sea, such as the destruction of cables. ‘Maybe we have been naive for too long. We see too much happening to do nothing’.
The issue is also on the minds of other companies with critical infrastructure such as grid operators Fluxys and Elia, and politicians also feel that something needs to be done. Belgian Prime Minister Alexander De Croo (Flemish liberal Open VLD) believes that private investment should be increased alongside public investments. Guidelines around ethical investments could use some fine-tuning.
Flemish prime minister Matthias Diependaele (Flemish nationalist N-VA) pointed out that historical resistance to investments in weapons is melting away in Flanders. ‘We don’t need to rush to making bombs and grenades, but we can examine how we can innovate in defence matters.’
Threatening trade war with US
There is also uncertainty with regard to US President Donald Trump's policies. The US president wants to protect US industry by using import tariffs, which could trigger a trade war. Politicians are weighing their words when it comes to this subject, but people are often heard to say Europe could beef up its strengths.
PM Diependaele is singing from the same hymn sheet. ‘I sense a lot of militancy. If you talk to Western business leaders you don't hear anyone writing off Europe altogether. We should not talk ourselves into the ground. We can compete,’ he says.
If Mr Trump claims Greenland, Belgian Prime Minister De Croo says the EU should give him short shrift. But if he complains about the trade imbalance, Mr Trump does have a point, according to the prime minister. If the Americans do start a trade dispute, Europe can rely on other serious trading partners around the world, he noted.