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01/04/2026

Luxembourg Defence Industry Strategy

On 26 March 2026, Lex Delles, Minister of the Economy, and Yuriko Backes, Minister of Defence, presented Luxembourg’s first Defence Industry Strategy at a press conference. Developed by the Ministry of the Economy and the Directorate of Defence, with the support of the Ministry of Higher Education and Research and the Directorate of Foreign Trade, this strategy aims to support the development of defence-related industrial and technological activities while generating benefits for the national economy.

In a degraded security environment, Luxembourg seeks to strengthen its contribution to Euro-Atlantic security and take advantage of increasing investments in defence. The strategy identifies priority technological domains and the capabilities to be reinforced in the land, air, space, and cyber sectors. These include artificial intelligence, robotics, cybersecurity, space technologies, advanced materials, logistics and military mobility, as well as data- and quantum-related technologies.

The government places innovation at the core of its approach and plans targeted support for start-ups and scale-ups, their integration into European value chains, and the potential use of Defence as a “first client.” A Defence Innovation Fund and a Defence Campus will be established to finance and oversee projects, with implementation supervised by an interministerial committee and a legislative framework ensuring legal security and appropriate controls.

The strategy also defines Luxembourg’s essential security interests: maintaining strategic autonomy, securing critical supplies, promoting local research, ensuring supply chain resilience, strengthening the Luxembourg Defence Technological and Industrial Base (BITDL), and contributing to European and allied security.

Lex Delles emphasized that this initiative enables the development of an innovative and resilient defence industry while creating economic opportunities. Yuriko Backes stressed the importance of a solid industrial and technological base and of integrating national actors into EU and NATO value chains to protect Luxembourg’s essential security interests.

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