WIREDGOV

Strengthening Europe’s defence requires public spending and public backing. How can political leaders explain and gain support for policies to fund defence investment?

‘We are making difficult choices that require something from all of us. We are asking citizens and businesses for a freedom contribution to cover part of the costs of our national security,’ Henri Bontenbal, leader of the Christian Democratic Appeal (CDA), declared at a press conference presenting the new Dutch coalition agreement earlier this year.

This was a surprisingly straightforward statement on how the recently inaugurated Dutch government intends to tackle the challenge of financing defence spending. However, the Dutch government will face several challenges, including securing strong public support for what is essentially the introduction of a new tax. As a NATO Ally, the Netherlands has committed to bringing its core defence spending up to 3.5% of its GDP by 2035 – up from an estimated 2.49% in 2025 – a budgetary dilemma that governments across Europe are seeking to solve.

Despite a heightened threat perception among European citizens, communicating the reforms needed to raise defence spending will not be an easy task. Some of the policy options generally lack public support, such as tax hikes or welfare cutbacks. While these measures can prove to be necessary in certain cases, governments should mainly focus on growth measures to raise public revenues for defence investment. European competition in a common defence market would be a key engine for such change, one that can be communicated as a positive, long-term growth-oriented step.

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