# Luxembourg Defence Guidelines for 2025 and Beyond ----- ### IMPRINT Published by: Ministry of Foreign and European Affairs Defence Directorate 6, rue de l’ancien Athénée L-1144 Luxembourg Tél. (+352) 247-82828 Fax (+352) 46 26 82 www.mae.lu www.gouvernement.lu www.luxembourg.lu www.armee.lu Design and production: Text and photographs: Defence Directorate Luxembourg Armed Forces Information and Press Department NATO Date of publication: December 2017 ----- Étienne Schneider **Deputy Prime Minister** **Minister of Defence** Dear Reader, I am pleased to present to you the Luxembourg Defence Guidelines for 2025 and Beyond. This is the first document of its kind in the field of national defence policy. The intention of this ambitious vision for Luxem­ bourg is to set out a coherent policy as a framework for implementing an increasing national defence effort. Luxembourg is a country open to the world and integrated with the international community, in which it plays a recognized role. Luxembourg’s election to a non-permanent member seat on the United Nations Security Council for the term 2013-2014 testifies to the recognition of our country’s contribution to international security. But such recognition also entails responsibilities and a resolute commitment to contribute to the collective ability to address threats to our security. Luxembourg has made concrete commitments towards strengthening European defence within both the European Union (EU) and the North Atlantic Treaty Organization (NATO). Luxembourg intends to honour these commitments and has defined its contribution to common defence in accordance with its interests and objectives. That contribution is described in these Guidelines. The Government intends to deliver an enhanced, visible, relevant and reliable defence effort. We will create new defence structures in Luxembourg that meet the criteria of military relevance but also our national crisis management requirements. We will equip our armed forces with modern, technological capabilities to service the aspirations of an evolving, open, dynamic and generous country. Emphasis will be placed on human resources, national public and private-sector know-how and on strengthening our engagement with our neighbour countries, in particu­ lar those of the BENELUX, who are our key partners in the area of defence policy. Luxembourg and its population wish to continue contributing to national and international security. We have benefited from the security that has prevailed on the European continent since the end of the Second World War. With this new vision for Luxembourg‘s defence, we intend to consolidate that security for ourselves, our partners and future generations. I wish you pleasant reading. Étienne Schneider ----- ### Table des matières ##### Executive Summary Introduction I. Context of Luxembourg‘s defence policy **A. Defending Luxembourg – why does Luxembourg need defence?** **B. Interests, objectives, and principles of the Luxembourg Defence** a) Essential security interests b) Strategic objectives c) Guiding principles **C. The Luxembourg Defence in a changing strategic environment** a) Evolution of the institutional framework (1) Luxembourg in the European Union (EU) (2) Luxembourg in the North Atlantic Treaty Organization (NATO) b) Evolution of Luxembourg‘s defence policy ##### 06 08 12 **12** **14** 14 14 16 **18** 18 19 20 21 ----- ##### II. A defence that mirrors the country **A. Evolution of the Luxembourg Defence structures framework** a) National level of ambition b) Planning c) Budgetary framework d) Defence structures e) Legislative and regulatory framework **B. Evolution of the Luxembourg Defence beyond 2025** a) Main lines of capability development b) The Luxembourg Armed Forces c) Human resources ##### III. Conclusions Annexes ##### 24 **26** 26 32 34 35 36 **37** 37 44 45 ##### 48 52 ----- ### Executive Summary The Luxembourg Defence Guidelines for 2025+ establish the framework for the development of Luxembourg’s Defence and describe the policy directions approved by the Govern­ ment for the coming years. In setting forth the interests and objectives Luxembourg will pursue in the area of defence policy, these Guidelines re­ assert the relevance, credibility and visibility of the national defence effort in the context of the Grand Duchy’s interna­ tional relations. Luxembourg today is a modern, dynamic, open and support­ ive country capable of contributing to the response to pres­ ent-day challenges. Our country has **benefited from the** **security enjoyed on the European continent thanks to the** major role played by NATO[1] and the European Union, and is committed to and supportive of a multilateralism founded on shared principles and values. The relevance and credibility of the defence effort are im­ portant not only in the context of NATO and the transatlantic relationship but also within the EU, where Luxembourg wishes to remain in the lead group as regards European integration. The men and women serving the cause of Luxembourg’s Defence are at the heart of this ambitious modernization. Consequently, this effort will entail increased investment in human resources, and also in relevant and effective equipment. The enhanced defence effort must involve a more diverse range of opportunities for defence personnel. To chart this course, the Luxembourg Defence Guidelines **for 2025+ outline the following key directions and objectives:** **- confirm the 2014 commitment to increase Luxembourg’s** defence effort by 50% up until 2020 and to **continue** **increasing the defence effort beyond 2020;** **-** **develop the army, increasing its involvement in the** defence effort by allocating to it a greater share of in­ vestments and creating more diverse and more tech­ nology-focused specializations, whilst not forsaking the importance of its social role; **-** **modernize ISR (Intelligence, Surveillance, Reconnaissance)** capabilities through investment in new reconnaissance technologies (RPAS), as an extension of the traditional re­ connaissance mission of the Luxembourg Armed Forces; The unstable international security environment has brought **-** **develop considerably the air component, with the acqui­** about changes in international security and defence policies. sition of new capabilities and platforms for strategic lift, Like the world around it, Luxembourg’s Defence is adapting. medical evacuation and maritime aerial surveillance; These Guidelines chart the course towards a modernization of Luxembourg’s defence organization and army. 1 To assist the reader, a glossary is provided at the end of this document ----- **-** **develop a Government air hub at Findel airport;** **- implement a** **military medicine project involving, in par­** ticular, operationally deployable medical teams specialized in trauma surgery and infectious diseases, that will support Luxembourg hospitals when not deployed, together with increased bed capacity, incorporated in an existing hospital facility, for use in times of crisis; **-** **continue developing expertise and capabilities in the fu­** **ture oriented areas of “space” and “cyber defence” in or­** der to meet the need for surveillance, communications and data link capabilities, but also the need for data storage and analysis capabilities, and so as to enhance the safety of our military personnel, particularly on deployments; **-** **develop a strategy for industry, innovation and research** in order to involve Luxembourg’s economic fabric in defence capability building; **-** **develop a recruitment strategy to meet the requirement** for adequate human resources with suitable profiles, particularly specialists capable of developing and imple­ menting the capabilities of the defence organization and of the Luxembourg Armed Forces; **- conduct a study on** **establishing a national service of** **availability enabling skilled civilians to be mobilized in the** event of a crisis so as to strengthen the resilience of the State and its departments; **-** **establish a national capability-development agency** tasked with developing and implementing major invest­ ment projects. For these new directions, the Luxembourg Defence will en­ sure that capabilities of high added value are acquired in **the recognized priority capability areas, that each project** is considered in the light of its potential relevance for Lux­ **embourg society,** and will establish **durable structures** that anchor defence in Luxembourg’s society and allow **better planning of our defence effort. In addition, the Lux­** embourg Defence will take particular care to tailor its ap­ proach to suit the frameworks of bilateral and multination­ al cooperation and partnerships in the areas of capability building and deployment. These Guidelines will be detailed in a more concrete planning document, a Defence Master Plan, to be updated annually. ----- ### Introduction The Luxembourg Defence Policy Guidelines for 2025+ is the **first public, national policy document defining long-term** **defence policy directions for Luxembourg. It describes** Luxembourg’s defence policy, the context and framework in which it is placed, Luxembourg’s strategic interests and objectives, its available resources and the manner in which they are employed, and how the Luxembourg Defence is destined to evolve over the coming years. Luxembourg has a military tradition which led to the intro­ duction of compulsory military service in 1944, and, in 1967, to the organization of Luxembourg’s army as we know it today. National interests and Luxembourg’s defence policy, of which the army is a major tool, have evolved in line with periods of peace and crisis, and national and international requirements. Today, Luxembourg’s Defence is at a turning point. The inter­ national situation, commitments made in the United Nations (UN), the European Union (EU) and NATO, and the desire to have an army that, in its modernity, reliability, openness and dynamism, is a reflection of our country, justify a change in priorities for Luxembourg’s Defence and army. In this context, several factors play a key role: the structures of the Luxembourg Defence (the Defence Directorate and the army), the changes in recruitment and the human resources profiles needed to implement the defence policy, the choice of investments (i.e. military capabilities) and preferred areas **of action, the development of a Defence Technological and** Industrial Base both within the EU and in Luxembourg, and the evolution of Luxembourg’s defence effort. Nowadays, rare are those countries that are able to influ­ ence the course of events alone, be it in terms of security and defence policy or in other areas. Luxembourg is no ex­ ception, and all the more so given the size of our country and the limited scale of our resources and defence struc­ tures. However, Luxembourg has always been able to turn its situation into a strength. ----- It succeeds in defending its national interests by enlisting the support of other nations, forging partnerships and lever­ aging its ability to influence major issues. Cooperating with **partners and maintaining a calm and stable national and** **international environment has always been a priority for** Luxembourg. These Guidelines explain why Luxembourg needs to be a **reliable player, both relevant and visible in the field of** **defence, and lay** **down** **the overall directions for the fu­** ture. They provide a **strategic outlook designed to best** serve our interests in the pursuit of our long-term foreign policy objectives and of our national and international se­ curity policy objectives. A strategic approach guided by clearly defined priorities and objectives enables opportu­ nities to be recognized and seized the moment they arise. These directions will in due course be given concrete ex­ pression in a separate document, the Defence Master Plan, which will determine how these Guidelines are to be imple­ mented. The Master Plan will serve as a time line and a tool for implementing the Guidelines, and will be regularly up­ dated. It will be drawn up and supervised by the Defence Di­ rectorate, in close cooperation with the Luxembourg army, under the authority of the Minister of Defence. The Plan will enable resource allocation, progress in implementation of objectives, actual results achieved and real progression of projects to be monitored. These two documents will facilitate **democratic scrutiny** of defence policy by setting out, in an entirely transparent manner, the principles and objectives of that policy. They constitute the baseline for monitoring the utilization of de­ fence resources, the missions of the army, the investment policy and the capability priorities. The Guidelines will also enable our interests to be better promoted in the institutions of which Luxembourg is a member and will explain how the Grand Duchy intends to meet its solidarity-oriented policy commitments as a credible player at the international level. ----- ----- ----- ### I. Context of Luxembourg’s defence policy ### A. Defending Luxembourg Luxembourg’s geographical location, territorial integrity and size have always influenced our country’s history and foreign and security policy. **Luxembourg cannot isolate itself from** **the international arena, nor has it ever wished to. Our coun­** try has opted for peace and effective multilateralism. Luxem­ bourg’s sovereignty is guaranteed by the absolute observance – by all – of the rules governing relations between States. The security and defence of our territory are dependent upon the security of our neighbours, of the EU and of NATO, and upon stability in the world. In the age of globalization, **Luxembourg’s vital interests** **cannot be defended at our immediate borders only. Its** **economic prosperity and security interests are both de­** **pendent upon free and safe access – assured by interna­** **tional law – to resources and goods common to all nations** **(known as global commons). For confirmation, one needs** only think of space, which is essential for our space industry, of access to international waterways, which is fundamen­ tal for our maritime flag, of energy supplies, or indeed of trade exchange, climate, airspace, cyberspace; all of these domains are vital for our security and essential for the prop­ er functioning of a knowledge-based and services economy that is dynamic and open to the world. **Today, the European and transatlantic security order is** **being challenged. The norms of international law are dis­** puted, even flouted. Europe is facing a huge migration cri­ sis compounded by a humanitarian tragedy. The threat of radical and violent extremism is spreading, and terrorism plagues even Luxembourg’s neighbour countries. Luxem­ bourg is spared neither the threat of extremism nor the attraction of violent ideologies for young people struggling to find their way. This scourge, which has developed on the periphery of Europe in the wake of disintegrating regional and local orders, is capable of striking at the heart of our societies. Potentially just as dangerous, emerging threats such as cyber attacks and hybrid threats (which often have a cyber component) are less direct and sometimes less visible, making it very difficult to identify the assailant and produce a response. Faced with these threats, our societies must harden their resilience, i.e. their ability to withstand all kinds of external attacks and blows, particularly in asym­ metrical form, and to guarantee that the State and its pub­ lic services will continue to function. The answers to these complex challenges can only be effective if they derive from holistic, interdepartmental, multidisciplinary and interna­ tional approaches. On account of its **political, economic, cultural and social** **openness, Luxembourg is vulnerable and exposed to the** risks affecting its external environment. Luxembourg can­ not single-handedly preserve its territorial integrity, the safety of its population, its prosperity, its independence and its sovereignty. International developments and the many ----- elements of instability they generate often have direct or in­ direct impacts on our security, our society and our economy. It is essential for Luxembourg to closely monitor, influence and adapt to such changes. To protect its security interests, Luxembourg has chosen to have an army and to integrate into multilateral structures. The preservation of a rules-based international order is a vital security interest for Luxembourg. Luxembourg is one of the founding members of the 20th century’s major mul­ **tilateral institutions, in particular the United Nations, the** North Atlantic Treaty Organization, the European Union and the Organization for Security and Cooperation in Eu­ rope. This gives it not only great pride but also an affirmed sense of special responsibility when it comes to defending the founding values of these institutions. These multilat­ eral fora provide the formal framework and the necessary assurances to protect our vital interests, in particular our economic and security interests, and justify taking decisions that commit our country. In order to assert its interests, to have its voice heard and to enjoy the collective security assured in particular by NATO, Luxembourg must meet the commitments it has entered into in the international organizations, bear its share of re­ sponsibility in the efforts and risks inherent in collective and common defence, and be recognized as a partner making relevant contributions. The goal of the defence policy is also to ensure that Luxembourg’s army has the human resourc­ es and equipment needed to contribute to defending our security interests and to successfully accomplish national and international missions. Luxembourg must make its due contribution to collective security. Luxembourg thus supports national and international peace and stability efforts in a **holistic and coherent approach** **combining diplomacy, development cooperation and de­** **fence (known as the “3D approach”). While the Luxembourg** Defence, in particular the army, provides territorial defence, it is also a component of Luxembourg’s foreign policy which, in conjunction with traditional diplomacy and development cooperation policy, contributes to conflict prevention and post-conflict reconstruction. For this reason, Luxembourg attaches particular importance to modes of action that are not exclusively military, and contributes to training or equip­ ments that enable other countries to provide their own se­ curity, for instance in the context of the EU “Capacity Build­ ing in support of Security and Development” programme and NATO’s “Projecting Stability” initiative. ----- ### B. The interests, objectives, and principles of the Luxembourg Defence The Luxembourg Defence contributes to the implementation of the Grand Duchy’s foreign and security policy. It enables the State to exercise sovereign functions in the areas of secu­ rity and defence, in pursuance of Luxembourg’s international commitments. Luxembourg’s defence policy is articulated around essential security interests and guiding principles, and pursues a number of fundamental objectives. **a. Essential security interests** The Luxembourg Defence **helps maintain and strengthen** **institutions which promote the stability, prosperity and se­** **curity of States and the respect of our values. To that end,** Luxembourg promotes in particular: **- the rule of law and the observance of international** law, of human rights and fundamental freedoms and of the principles of good governance; **- collaborative approaches in the context of an effec­** tive multilateral system; **- the defence of our values on an international level;** **- a strong transatlantic link.** Luxembourg’s defence policy helps **protect the essential** **security interests and foundations of the living environ­** ment of the country and its population: **- preserving Luxembourg’s territorial integrity, inde­** pendence and sovereignty; **- preserving the population’s freedom and safety in a** stable, open and dynamic society; **- protecting the foundations of Luxembourg’s prosper­** ity and economic & strategic supply security; **- guaranteeing ongoing functioning of the State and of** public services; **- decision-making autonomy;** **- strengthening institutions and international rules.** **b. Strategic objectives** The Luxembourg Defence pursues a number of strategic objectives which are also commitments in the context of its active, solidarity-oriented participation in multilateral struc­ tures such as the European Union and NATO. 1. Providing visible contributions of high added value to collective and common defence and to crisis-management missions and stability-building efforts. Luxembourg honours its international commitments through solidarity-focused contributions to the equitable sharing of operational risks, by engaging its armed forces and increasing its defence effort. In addition to deploying its armed forces, Luxembourg will also contribute to these operational commitments by developing and offering ac­ cess to high-value-added capabilities in niches of excel­ lence, in particular via the development of a national De­ fence Technological and Industrial Base. 2. Contributing, in solidarity, to defence effort burden-sharing. Luxembourg assumes its responsibilities as a NATO Ally and will continue to enhance its contribution to burden sharing, in particular by gradually increasing its defence effort. At the NATO Summit held in Wales in 2014, Luxem­ bourg committed, in a first stage, to achieving a defence effort target equivalent to 0.6% of GDP in 2020. That trend is to continue beyond 2020. Besides the financial criteria, Luxembourg promotes a broader view of the defence and ----- security effort: qualitative aspects and policies other than defence alone must be taken into account. European co­ operation initiatives in the area of equipment must also be promoted. 3. Fostering coherent management of the full range of crisis-prevention and crisis-response tools. Domestic and external security issues are linked and the threats are complex, such that a coordinated approach to security issues is essential. Luxembourg supports a con­ sistent and integrated approach that promotes democracy, sustainable development and prosperity to combat factors of instability. This requires coherent implementation of a set of tools not fully available to any single player and which touch on areas other than just defence (development aid, environment, etc.). 4. Decision-making autonomy. Luxembourg seeks to develop capabilities that it fully con­ trols, over which it will have assured availability and se­ curity, that will remain autonomous and that will afford visibility of Luxembourg’s security policy approach. Auton­ omy in decision-making allows Luxembourg to honour its commitments and to engage its support and sustainment capabilities while respecting its values and priorities. 5. Promoting and federating national competencies so as to develop a competitive technological and industrial base capa­ ble of contributing to NATO and EU capability requirements. The existence of a technological and industrial base that is competitive on the international market is a central, strate­ gic element enabling Luxembourg, the EU Member States and the Allies to assume their obligations in the long term. Developing a national Defence Technological and Industrial Base is a useful means of contributing to military capability building and decision-making autonomy in line with policy choices made in the area of crisis management. Those ca­ pabilities and services – particularly in the areas of informa­ tion gathering and data transmission, storage, processing and analysis – form moreover part of the critical infrastruc­ ture that must be protected against hostile action. Various forms of partnership with the private sector enable new capabilities to be developed using innovative methods, generally in the area of ‘dual-use’ (civilian and military) ca­ pabilities. This approach also involves promoting research and development for emerging niches of excellence. To this end, a strategy aiming to establish a national technol­ ogy, innovation and research base will be developed. 6. Defence in tune with national realities. The defence organization and the armed forces are an integral part of Luxembourg society. Luxembourg’s defence policy must promote an evolution of the army and of the defence invest­ ment effort that reflects Luxembourg society – open, multicul­ tural, dynamic, modern, technological and solidarity-oriented. ----- **c. Guiding principles** The conduct of the Luxembourg Defence is informed by a set of guiding principles: - **Defence that is relevant and visible in the context of** a coherent foreign policy The usefulness of the defence organization and the armed forces hinges on them having at their disposal a range of operational capabilities that are both de­ **ployable and actually deployed to exert a military ef­** fort capable of defending Luxembourg’s security inter­ ests in the context of a coherent foreign and national **& international security policy. Having a modern de­** fence apparatus underpins Luxembourg as a reliable international partner. The capabilities available to the Luxembourg Defence must cater for (1) contributions to common and collective defence missions, (2) par­ ticipation in crisis-management missions and in rapid reaction groups in a sustained manner, (3) contribu­ tions to projecting stability in the context of the EU and NATO, and (4) performance of national missions. - **Key partners** Luxembourg’s military forces and capabilities are almost exclusively **deployed in the context of mul­** **tinational groups and incorporated into contingents** **of our key partners (Germany, Belgium, France, The** Netherlands). Interaction with partners is conse­ quently a main driver of defence development. Such cooperation shapes and guides capability develop­ ment and operational engagement, and requires in­ teroperability of forces to be systematically taken into account. In future, these partnerships are destined to be further consolidated and deepened. ----- - **Operational risk sharing: leadership – skills – equip­** ment– training Personnel deployed by the are exposed to opera­ tional risks inherent to the engagement of military forces when options for resolving disputes by peace­ ful means have been exhausted. Observance of the principle of equitable sharing of risks requires forces **that are instructed, equipped and trained to perform** **their missions in the best possible conditions and in** line with the political mandate for each operation. In­ teroperability with our partners is also a crucial fac­ tor for the effectiveness of our forces and the safety of our military personnel. The Luxembourg Defence will continue to invest in its personnel to ensure they have the leadership, instruction, training, equipment and protection needed to engage successfully. - **Flexibility and adaptability** The Luxembourg Defence must maintain a degree of flexibility to react quickly to changing circumstances, new threats and the emergence of new capability ini­ tiatives. Luxembourg must be able to respond to new requests with respect to the niche areas of compe­ tence in which it excels. Its intent is to seize opportuni­ ties, asserting itself as a reliable and dynamic partner. ----- ### C. The Luxembourg Defence in a changing international environment The United Nations is the keystone of the international structure whose purpose is to preserve lasting peace in the world. The election of Luxembourg, on its first candi­ dacy, to a non-permanent seat on the UN Security Council for the term 2013-2014 enabled it to contribute actively to this endeavour. Its election was a mark of confidence and recognition, on the part of the international community, of Luxembourg’s ability to promote international peace and security. Above all, it is an illustration of the responsibility that falls to our country in this area. Luxembourg has sub­ mitted a further candidacy for the term 2031-2032. In addition to the United Nations, attachment to a strong **transatlantic link and commitment to a strong European de­** fence within the European Union and NATO are fundamental principles of Luxembourg’s security and defence policy. Ge­ ography, history and culture explain Luxembourg’s anchor­ ing in the Euro-Atlantic community, of which we share not only the values and interests but also the responsibilities for protecting those values and interests on a scale beyond the purely regional level. The presence on Luxembourg territory of numerous European institutions, of NATO’s largest agency (NSPA – the NATO Support and Procurement Agency) and of US defence infrastructure is tangible evidence of the recogni­ tion of Luxembourg’s international commitment. **Luxembourg acts with determination in concert with its** **allies and partners, in particular in the context of the Eu­** **ropean Union and NATO, through active involvement in and** contributions to the efforts undertaken in those institutional frameworks. Several factors underpin Luxembourg’s en­ gagement at the international level: - the need for Europe to shoulder its security respon­ sibilities to ensure stability in its area of interest, in particular in connection with the implementation of the new Global Strategy for security; - the need to contribute as an Ally to the modernization of NATO’s collective defence capabilities (in particular with a view to an effective deterrence policy), while at the same time bolstering the resilience of our socie­ ties in the face of hybrid threats, and to meeting the requirement to share the burden equitably between European and North American players; - the willingness to make concrete contributions (equip­ ment, troops, training) to crisis management and to initiatives aimed at projecting stability, using every available security and development tool, to help con­ tain instability factors before they result in the prolifer­ ation of transnational risks affecting our own security. The Luxembourg Defence thus largely falls in with the pri­ orities and commitments defined jointly within NATO and the EU. **a. Evolution of the institutional framework** **The European Union and the Alliance are facing unprece­** **dented, complex challenges in an environment character­** **ized by increasing unpredictability and uncertainty in which** populations are evidencing a degree of disenchantment with international institutions. Protecting the values and principles on which these institutions are founded nowadays requires concerted, determined, focused and measured action in or­ der to preserve the benefits of an evolution that has brought about a united, prosperous and peaceful Europe enjoyed by 500 million citizens.. In view of the changing international context, the member nations of **the Atlantic Alliance and the European Union** **have embarked upon a process of adaptation and transfor­** **mation, while ensuring close cooperation is maintained and** avoiding duplication of their efforts. **As an Ally and an EU** **Member State, Luxembourg must also adapt and shoulder** **its responsibilities in these organizations in solidarity.** **The EU and NATO** must leverage the fact that a majority of the Allies are also EU Member States, sharing a very similar geographic footprint and very similar security challenges. Both organizations must intensify their coop­ **eration in a coordinated, pragmatic and complementary** **approach,** particularly as regards hybrid threats, maritime issues, cyber security, strategic communication, the de­ fence industry and research, and exercises and capability strengthening in the area of defence and security. In making its strategic choices, Luxembourg will give pri­ ority to exploring avenues that will lead to deeper coop­ eration between NATO and the European Union, with due respect for their decision-making autonomy. ----- - Luxembourg in the European Union (EU) **The European Union is motivated by a project of peace, se­** **curity and prosperity. Within the development of a European** Security and Defence Policy, it contributes to stability efforts in its zone of influence, beyond continental Europe. The with­ drawal of the United Kingdom does not alter the relevance of the EU Global Strategy for security, particularly in its de­ fence-related aspects. The security interests of the EU and its Member States underline the need to continue to work with the United Kingdom and other European partner countries. The Global Strategy for security presented in 2016 aims to provide a new framework for European foreign and security policy. It defines the four fundamental interests of the Eu­ ropean Union: peace and security, prosperity, democracy **and a rules-based global order. The strategy also empha­** sizes the importance of prevention to counter instability and the need to take account of the links between domestic and external security. In the pursuit of its interests, the Europe­ an Union observes four principles: unity, participation, re­ sponsibility and partnerships. **Luxembourg shares the objectives of the new European** **Union defence strategy and actively supports evolution** **towards a strengthening of European defence policy in** complementarity with NATO. The EU can neither remain on the sidelines in the face of the global challenges nor overly rely on others at the risk of endangering its own stability and losing strategic weight and importance. The European Union must project peace and stability beyond its borders. The European Union Member States, includ­ ing Luxembourg, must shoulder more responsibility for strengthening Europe’s security and defence in a challeng­ ing geopolitical environment, in the interest of the security and well-being of their citizens. The European Union and its Member States must be capable of making a decisive contribution to collective security efforts and of acting au­ tonomously when and where the need arises, with their partners wherever possible. This ambition must be found­ ed on the EU’s ability to use the full range of global crisis management tools. The Europeans must have their own planning and decision-making capability. In order to develop this stronger, more effective Europe­ an defence, it will be necessary to **enhance cooperation** **between Member States in the development of relevant** **military capabilities in the framework of a sustained de­** fence effort, along the lines of what Luxembourg is already doing, for instance within BENELUX, in particular with a view to improving the EU’s strategic and operational au­ tonomy. Common planning and funding resources (Eu­ ropean Defence Agency, European Defence Fund) will be useful for harmonizing capability investment policy, so as to ensure that defence budgets are used in the most ra­ tional, relevant and effective manner, and to enhance syn­ ergies between EU Member States in the area of defence. The EU’s strength lies in federating States that pool their political and operational strength. In future, emphasis must be placed on major common investment programmes supporting fair and inclusive development of the European Defence Technological and Industrial Base and a common defence policy. Luxembourg supports the establishment of Permanent Structured Cooperation (PESCO) for defence and welcomes the European Defence Action Plan. **Luxembourg will continue to take part in the EU’s common** acquisition programmes, in particular within the European Defence Agency. It will also continue to deploy troops and military capabilities in military operations worldwide, and to participate in EU Battlegroups. ----- - Luxembourg in the North Atlantic Treaty Organization **(NATO)** **NATO is a defensive military alliance. It is a guarantor of** security in the Euro-Atlantic area. The guarantees of col­ lective security founded on a strong transatlantic link have made it possible to cultivate an area of peace embracing the values of democracy, human rights and freedom. The solidarity among Allies is based on concrete commitments in a context of equitable burden-sharing. The North Atlan­ **tic Treaty sets out the obligations of its signatories, who** define themselves as a community of values that include freedom, democracy and the rule of law and are rooted in a common history and heritage. Based on a Strategic Concept defining what the Alliance requires to implement the Treaty’s Article 5 collective de­ fence clause, the Allies are committed under Article 3 to develop individually and collectively the military capacities needed for that collective defence. Each Ally is therefore required to invest in military capabilities, and the sum of the capabilities of all the Allies must enable NATO to en­ sure the collective defence of the entire Alliance. To that end, NATO has established a defence planning mechanism that defines the nations’ contributions and helps nations to achieve them. This same process defines capability goals consistent with national and Alliance needs. The assign­ ment of capability goals is based on the principles of eq­ **uitable sharing and reasonable challenge. This equitable** sharing involves not just equipment and military acquisi­ tions: each Ally must maintain operational forces capable of being deployed in jointly decided operations. Luxem­ bourg, like the other Allies, must provide a fair share of NATO’s collective capability requirements. *** **NATO has embarked on a long-term adaptation process** designed to allow it to confront the new risks affecting the security of all the Allies. These risks call for comprehen­ sive, concerted approaches. The process was launched at the Wales Summit in September 2014. The Warsaw Sum­ **mit in July 2016 reviewed progress and gave new impetus.** The adaptation covers three dimensions: military, policy, and institutional. It aims to ensure NATO’s enduring rele­ vance in continuing to guarantee the security of all the Al­ lies in a degraded environment. It involves all of the Allies, in solidarity. With this adaptation, the priority in terms of NATO operations has shifted from crisis management to collective defence. The military will no longer solely be de­ ployed in operations such as that of KFOR in Kosovo or the Resolute Support Mission in Afghanistan, but increasingly in the context of reassurance measures for Allied nations finding themselves in a degraded security situation. **Military adaptation involves concrete measures to which** Luxembourg contributes in the following areas in particular: **- responsiveness of forces and NATO’s decision-mak­** ing agility are to be enhanced: NATO’s troops must be capable of being deployed more rapidly. The NATO **Response Force (NRF) has consequently been rein­** forced, and within it a Very High Readiness Joint Task **Force (VJTF) has been established in which all Allies** take part, and which can be deployed in-theatre very rapidly in the event of an incident or an attack; **- an array of** **assurance measures will be sustained,** particularly for the Baltic States. This involves ensur­ ing a **significant level of defensive military activity** on the territory of Allied countries and in internation­ al airspace and waters; **- continuous multinational military presence will be** ensured by rotation on the territory of certain Allies requesting it, in the context of **enhanced Forward** **Presence (eFP) and** **tailored Forward Presence** (tFP). In conjunction with assurance measures, the aim is to ensure that the solidarity of all the Allies is visible by means of multinational defensive forces of limited size acting as a deterrent and affirming the credibility of collective defence. From 2017, Luxem­ bourg will contribute to an eFP battalion in Lithuania with Germany as Framework Nation; **- a strategy to counter hybrid threats and a reinforce­** ment of national **cyber defence capabilities help to** improve our societies’ resilience to these complex threats. **Resilience encompasses the full range of** measures needed to ensure that institutions and public services continue to function and that popula­ tions and critical infrastructures are safeguarded. **Policy adjustment aims in particular to improve the ability** to project stability for regional partners and organizations that share our values and interests. The Defence Capacity **Building Initiative (DCBI) is the major initiative designed to** help requesting countries to develop military capabilities that are interoperable with NATO. At the 2014 NATO Summit in Wales, Heads of State and Government made the commitment to increase their de­ **fence effort and move towards the target of 2% of GDP in** the medium term. They also agreed to allocate 20% of their defence effort to investments. Luxembourg has met the 20% investment target and in­ tends to continue exceeding that figure through its na­ tional defence effort. Our country has moreover agreed to increase its defence effort from 0.4% to 0.6% of GDP by 2020. The intent is to consolidate this commitment to an augmented defence effort. **Luxembourg will continue to invest in military capabilities** that are relevant for the Alliance, in a solidarity-oriented effort aimed at collective defence. Our country has taken **part in NATO military operations and deployments and** **will continue to do so. In addition to deployments in the** context of reassurance measures, Luxembourg has been ----- present for more than 15 years in Kosovo as part of KFOR, and since 2003 in Afghanistan alongside other Allied and international troops. **For Luxembourg, the challenges stemming from these de­** velopments are complex and have profound implications: **the stakes are high and the bar has been set higher. This is** also true of the expectations made of a prosperous country that has benefited from the stability and security enjoyed on the European continent. A long-term view should there­ fore be taken in managing resources that are admittedly increasing but nonetheless limited. Positions should be adopted that will strengthen our credibility as a Member State and Ally capable of contributing to collective security. **b. Evolution of Luxembourg’s defence policy** For several years, Luxembourg has been facing a dual change process: **- at the national level, Luxembourg has evolved. Our** country is prosperous, our population continues to grow and this prosperity and growth are rooted in our economy’s ever increasing diversification and open­ ness. Luxembourg is also experiencing a technologi­ cal evolution, particularly in the field of communica­ tions. Our armed forces must confront the challenge of new missions and modernizing technologies in a demographic context that constrains the recruitment of the necessary talent; **- at the international level, the security situation has** deteriorated, and constant change, instability and a degree of insecurity now seem to be the norm. New threats, more diffuse but no less dangerous, directly or indirectly affect our country’s security. The world **is changing rapidly and will continue to change.** The commitments made at the 2014 and 2016 NATO Sum­ mits and in the European Union have set in motion a pro­ **found and lasting change in terms of security and defence** **at the international level, and entail constant pressure to** **increase our contribution to common and collective sol­** **idarity and defence. Our country, too, must adapt to this** change and prepare for the future, in order to defend our national interests, assume our obligations and shoulder our share of responsibility, in solidarity, alongside our partners. The Luxembourg Defence, like the major international in­ stitutions and our partner countries, must **keep abreast** **with world developments and adapt to the changes.** **Faced with constant, unpredictable evolutions in the in­** **ternational security context, new policy directions need** **to be defined** to defend Luxembourg’s security interests and realize its strategic objectives. Luxembourg must **plan and roll out its defence effort in** **a responsible, effective, rational and innovative manner.** The investments made must be meaningful for our Allies and for Luxembourg’s army. As far as possible, these in­ vestments should also be beneficial for the population, the economy and Luxembourg society. Luxembourg must es­ tablish new defence structures enabling this effort to be sustained over time. These Luxembourg Defence Guidelines and the future di­ rections they set out for our country will enable the Grand Duchy to respond and adapt to current and future threats. The present situation, characterized by changes in interna­ tional security, modernization of equipment and a height­ ened defence effort, must be taken as an opportunity for the Luxembourg Defence and its armed forces. Continuing as though nothing has happened is not an option. Like our **country and the world around it, the Luxembourg Defence** **must look to the future.** ----- ----- ----- ### II. A defence that mirrors the country **Luxembourg’s army has always been the key component** **in the defence of the Grand Duchy – the instrument of** choice for meeting our national and international commit­ ments. Within the Ministry of Foreign and European Affairs, the Defence Directorate assists the Minister of Defence in defining defence policy and ensures that it is implemented, including by the armed forces. With the evolution of the defence effort and the national and international context, the activities of the Luxembourg Defence have, for several years now, extended **beyond** **merely investing in specific equipment for the army. In** particular, Luxembourg participates in multilateral acqui­ **sition programmes for common capabilities which enable** contributions to the priority requirements of the EU and NATO, and which can either serve Luxembourg’s army di­ rectly with a view to deployment and operation by the latter on behalf of the Grand Duchy, or constitute a Luxembourg contribution to EU, NATO or UN operations involving mis­ sions in which our armed forces do not participate directly. The increase in budgetary resources allocated for defence, announced at the NATO Summit held in Wales in Septem­ ber 2014, has been essentially manifested in significant investment in multinational capabilities. The continuing augmentation of the defence effort will require a signifi­ cant level of investment to be sustained. This investment effort has revealed structural challenges, particularly in terms of human resources and of a degree of volatility at the planning level. As things now stand, the structures of the defence organization and of the Luxembourg army are managing only with difficulty to absorb this considerable budgetary growth. In future, in addition to an investment effort exceeding 20% of the defence budget, the aim will be to establish new, sustainable defence structures and to develop new sectors within Luxembourg’s armed forces together with the appropriate infrastructure. The goal is to ensure that, in future, the Luxembourg Defence appara­ tus can be founded on broader structures. In keeping with a rapidly diversifying society and economy characterized by an influx of foreign talent and technological innovation, ----- the Luxembourg Defence will leverage this technological know-how and will be able to draw on expertise from EU countries where necessary. This approach will be imple­ mented in a resolute and intelligent manner, while main­ taining the essential cohesion within the armed forces and respecting the prerogatives of the public authorities. This evolution will enable Luxembourg to have at its com­ mand a set of modern, diverse, relevant and effective tools and resources for **achieving its security objectives. In a** changing world, where the nature of potential and actual threats is increasingly varied, technological and unforesee­ able, the Luxembourg Defence and the armed forces must also evolve, while conserving our national particularities. The evolution of the Luxembourg Defence for 2025 and be­ yond takes account of the changes and broad principles de­ scribed in the first chapter. Its overall objective is to ensure that the **Luxembourg Defence is effective and modern,** **reliable and dynamic, open and solidarity-oriented, and** **capable of contributing to security in Europe and beyond.** Defence policy is defined and agreed upon in a specific **framework that structures the thinking and decision-mak­** ing process, for instance as regards the organization of the army or capability planning. The armed forces will remain at the centre of Luxembourg’s defence policy and will be given new capability areas. Other than the army, durable capability sectors will be established in partnership with industry for defence purposes. Implementing a defence policy entails setting Luxem­ bourg’s level of ambition, i.e. what we wish to be capable of achieving in the field of defence at the national and inter­ national levels. It will then be necessary to put in place the assets (human and financial resources and capabilities, etc.) that we wish to have to achieve that level of ambition, and to decide how we wish to employ them. ----- ### A. Evolution of the Luxembourg Defence structures framework **a. National level of ambition** Like all other countries, Luxembourg has to set its “na­ tional level of ambition” in the area of defence. The level of **ambition defines the defence and military objectives and** **resources that Luxembourg assigns, at the national and** international levels, to defend its security interests and to participate in collective defence, crisis management and cooperative security, in accordance with our policy com­ mitments. The purpose of so doing is for the Government to have a sufficiently broad range of options for meeting all of its voluntary and binding commitments. The capabilities must be credible, relevant, available and sustainable and **allow autonomous policy choices to be made.** These Guidelines describe a generic level of ambition that will be detailed in the Master Plan. The level of ambition enables the missions provided for un­ der Luxembourg law to materialize in the form of concrete tasks. The **law of 1952 (amended) on military organization sets** forth the army’s national missions as follows: - participating, in the event of armed conflict, in the de­ fence of the territory of the Grand Duchy; - protecting vital points and areas of the national terri­ tory; ----- - providing assistance to the other public authorities and to the population where the public interest is seriously compromised or in the event of natural disasters; - preparing its volunteers for public or private sector employment. In the context of our international commitments, the mis­ sions are as follows: - contributing to collective and common defence with­ in the international organizations of which the Grand Duchy is a member; - participating within the same framework in peace­ keeping and crisis management missions, including peace restoration missions; - participating within the same framework in peace­ keeping and crisis management missions, including peace pearce-makingmissions; The level of ambition therefore identifies the military and **capability resources enabling priority national tasks to be** performed and politically binding commitments to be met. Further, it identifies the means of respecting any other vol­ untary commitments made by the Government to promote peace, security and international stability in line with our global “3D” approach. This level of ambition will be detailed in the Defence Master Plan. *** ----- ----- ----- 5. In the framework of the European Union: a. Luxembourg will actively support implementation of the European Union’s Global Strategy for securi­ ty and will contribute to the measures and structures designed to exploit the full potential of the Treaty of Lisbon as regards the Common Security and Defence Policy (CSDP), particularly in the context of **Permanent Structured Cooperation (PESCO), which is open to Member States committing to closer** cooperation in the area of defence; b. Luxembourg will regularly participate in crisis management, advisory, assistance and training operations; c. Luxembourg will participate in the EU’s **rapid reaction capability (EU Battle Groups). A substantial** contribution will be envisaged at regular intervals, in principle every 4 or 5 years, taking into account the plans of our key partners; The **operational level of ambition comprises the following elements, which will be detailed in the Defence** Master Plan: 1. The responsiveness and speed of deployment of our forces will continue to improve, enhancing the cred­ ibility of our contributions to rapid-reaction force units. 2. In the context of defence planning within NATO, the maximum level of commitment planned for the Land Component of the Luxembourg armed forces is a force strength equivalent to the manning level of a com­ pany, sustainable for **one year. That contingent will be integrated with the contributions of key partners,** with a high level of interdependence in the area of support and sustainment. Affiliation arrangements will be developed with our key partners within the Framework Nations Concept. 3. In the context of operational engagements in crisis management and long-term deployments on a rota­ tion basis, the maximum deployment capability for the Land Component is a platoon strength contingent. 4. The Luxembourg Defence will enhance its resources so as to be able to provide Staff-level reinforcements **or specialized land and air capabilities or elements in its priority areas of action.** ----- ----- **b. Planning** To define and achieve its national level of ambition, Luxem­ bourg must plan and manage its existing resources and as­ sets and those it intends to acquire. This national planning process is conducted within the framework of policy and military objectives and commitments, of processes and of partnerships, in part mandatory, and it must allow the poli­ cy decisions and objectives, the operational in-theatre com­ mitments decided by the Allies and the mandatory NATO planning process to be realized. Several factors and considerations thus structure and de­ termine the planning of the resources and assets of the Luxembourg Defence: - Policy and military objectives Luxembourg’s adherence to international policy objectives and commitments has **significant consequences in terms** **of structures, resources, preparation and engagement of** **forces, capability building & commitment and in terms of** **partnering choices, which inform the transformation and** **adaptation of the forces.** These commitments have a direct effect on the armed forc­ es’ organization, resulting in a transformation of our forc­ es and a demanding time line and framework for Luxem­ bourg’s armed forces. This has profound repercussions for the management of human resources, equipment, training and organization, and requires adjustments in terms of the **interoperability of our forces and an adaptation of our de­** cision-making mechanisms. - Mechanisms and bodies involved in capability development, acquisition, management and monitoring NATO and the EU have mechanisms to ensure the develop­ ment, availability and coherence of available capabilities: each of the Allies and EU Member States must develop at national level capabilities that can be pooled for collective defence. Within NATO, this capability development mechanism takes the form of the NATO Defence Planning Process (NDPP), which sets concrete objectives for all Allies in four-year cy­ cles and comprises an annual review and monitoring com­ ponent. It includes tools for evaluation and comparison against quantitative and qualitative benchmarks. Individu­ al Allies are required to achieve objectives assigned to and accepted by them on a national basis in order to contribute, in solidarity, to meeting the Alliance’s needs. Luxembourg is therefore assigned a number of capability objectives to be achieved in the short and medium terms. The European Union mechanism is currently more flexible and functions on a voluntary basis. It is synchronized with the NATO mechanism. The establishment of a Coordinated Annual Review on Defence (CARD) in connection with the implementation of the Global Strategy for security will also contribute to improving the coordination of national efforts. For acquisition, monitoring and, where the need arises, employment of capabilities, the Luxembourg Defence fa­ vours pooling and the use of existing structures. It there­ fore engages at various levels in the European Defence Agency (EDA), the European Air Transport Command (EATC), the NATO Communication and Information Agen­ cy (NCIA), and the Luxembourg-based NATO Support and Procurement Agency (NSPA). - Bilateral and multilateral cooperation Luxembourg’s troops deploy within multinational contin­ gents. For these contingents to be operational, it must be ensured that the troops and resources deployed by each country are interoperable, in order to guarantee the effec­ tiveness of the chain of command. The capabilities acquired by Luxembourg must function within a multinationally co­ herent whole. Engagement alongside our key partners informs Luxem­ bourg’s decisions and enhances the legitimacy thereof as regards capability investments and operational deployments. For Luxembourg, cooperation between Allies and EU Mem­ ber States is both a necessity and a deliberate choice. The aims of this cooperation are, in particular, to jointly acquire or employ shared capabilities or to ensure the interopera­ bility of forces. **Interoperability is a critical requirement because of the** increasing complexity of operational situations and the technicality of assets and processes. It involves all areas of cooperation, ranging from common acquisition of capabili­ ----- ties, through instruction & training and capability life-cycle management, to operational engagements. The Luxem­ bourg Defence intends to make lasting contributions to high**value-added elements integrated in a multinational effort.** Capabilities held jointly with partners also allow access to alternatives in terms of military responses suited to concrete calls for engagement and to national policy choices. Luxem­ bourg’s armed forces will adopt, from amongst those capa­ bilities, those best matching its evolution. For Luxembourg, cooperation with **Belgium is founded on** a long tradition of joint deployments and links between the members of our Armed Forces, notably because most of the Army’s officers are sent to train in Belgian military schools. Joint exercises and deployments have become the norm. Defence cooperation between the three BENELUX countries has gained renewed momentum since the joint declaration by the Ministers of Defence on 18 April 2012, and this will contin­ ue. Several joint projects have already been conducted. There is also a long history of cooperation with Germany **and France; this will continue, particularly in the frame­** work of the European Corps, occasionally in the frame­ work of the Franco-German Brigade, and in the area of instruction, training and deployments. In June 2014, the NATO Ministers of Defence approved the **Framework Nations Concept (FNC), which originated in** a **German initiative. Luxembourg was amongst the first** to subscribe to the concept. The FNC offers a structured framework allowing participating Allies to implement their common capability goals stemming from NATO defence planning in a coherent manner that allows synergies to be achieved and fully interoperable capabilities to be put in place. Based in particular on FNC cooperation, Germany also intends to provide a land forces formation at army Copyright NATO corps level: the “Larger Formations” initiative, in which Luxembourg will take part. Luxembourg’s contributions to the European Corps and to the Multinational Joint Headquarters in Ulm will continue to evolve depending on the prospects of relevant contri­ butions in the framework both of the European Union and NATO. Other contributions to a multinational unit could be envisaged. Preserving a strong **transatlantic link is crucial. To that** end, the Luxembourg Defence is involved in practical co­ operation with the United States, particularly in the area of satellites. The partnership policy has a far-reaching structuring ef­ **fect because interoperability constraints necessitate pro­** gressive alignment of military requirements, acquisition programme timelines, employment concepts and training. In response to the objection that Luxembourg’s defence ap­ paratus risks losing control of its own future and identity, it can be argued that only by interacting with partners can we master the technicalities of ever more sophisticated capa­ bilities and, above all, leverage our investments through a multiplier effect while ensuring relevant implementation in a coherent host environment provided by our partners. ----- **c. Budgetary ambition** At the 2014 NATO Summit in Wales, the Allies committed to reverse the downturn in defence budgets observed since the fall of the Berlin wall and to aim in the medium term at a defence effort amounting to 2% of GDP. The Luxem­ bourg Government announced a first concrete objective: **to raise its defence effort from 0.4% of GDP in 2014 to** **0.6% in 2020, i.e. an increase in real terms of at least 50%,** absorbing which represents a challenge for Luxembourg’s current defence architecture. The proportion of the invest­ ment in multinational capabilities with partners will re­ main high, above the 20% benchmark confirmed by NATO at the Wales Summit. This decision is to be viewed in an international context characterized by numerous crises. The increase in defence budgets is also in keeping with Europe’s desire to develop a stronger and more autonomous European defence, be **it within NATO or within the EU. Participation in PESCO,** **in line with Protocol No. 10 of the EU Treaty, will also** **require a sustained budgetary effort. The internation­** al community has expressed an expectation of all of the **4** **3.5** **3** **2.5** **2** **1.5** **1** **0.5** Allies. The increase in Luxembourg’s defence effort must therefore enable us to participate, in solidarity, in a more **ambitious European and transatlantic defence and secu­** **rity effort. This will also allow us to initiate a progression** **of Luxembourg’s defence apparatus and army towards** **more modern, high-tech capabilities and enable Luxem­** **bourg’s Defence structures to aim for a lasting impact.** Finally, defence effort investments will also enable Lux­ embourg society to enjoy not only a higher level of security but also access to capabilities and infrastructure that can equally well be deployed for military purposes or used in Luxembourg for the benefit of the population. Luxembourg’s annual defence effort will exceed 320 million euros in 2018, amounting to roughly 0.5% of GDP (based on GDP estimated at the time of going to print), while the average for European countries is close to 1.4%. Although Luxembourg’s per capita GDP is one of the highest in the world, our defence effort remains below 1%. Within NATO, estimated figures for 2016 are as follows, in increasing order of defence effort[2]: **1.** **2.** **3.** **4.** **5.** **6.** **7.** **8.** **9.** **10.** **11.** **12.** **13.** **14.** **15.** **16.** **17.** **18.** **19.** **20.** **21.** **22.** **23.** **24.** **25.** **26.** **27.** **28.** **29.** **30.** 1. Luxembourg (0,42 %) / 2. Spain (0,90 %) / 3. Belgium ( 0,91%) / 4. Czech Republic ( 1,01%) / 5. Slovenia (1,02 %) / 6. Hungary ( 1,02%) / 7. Canada (1,02 %) 8. Italy (1,11 %) / 9. Albania (1,11 %) / 10. Slovak Republic (1,12 %) / 11. Denmark (1,14 %) / 12. Netherlands (1,16 %) / 13. Germany (1,20 %) / 14. Croatia (1,21 %) 15. Bulgaria (1,30 %) / 16. Portugal (1,38 %) / 17. Romania (1,41 %) / 18. Latavia (1,46 %) / 19. NATO Europe (1,47 %) / 20. Lithuania (1,49 %) 21. Norway (1,55 %) / 22. Turkey (1,69 %) / 23. France (1,79 %) / 24. Poland (2,01 %) / 25. United Kingdom (2,17 %) / 26. Estonia (2,18 %) / 27. Greece (2,36 %) 28. NATO Total (2,43 %) / 29. North America (3,36 %) / 30. United States (3,61 %) 2 http://www.nato.int/nato_static_fl2014/assets/pdf/pdf_2016_07/20160704_160704-pr2016-116.pdf **4** **3.5** **3** **2.5** **2** **1.5** **1** **0.5** **0** **1.** **2.** **3.** **4.** **5.** **6.** **7.** **8.** **9.** **10.** **11.** **12.** **13.** **14.** **15.** **16.** **17.** **18.** **19.** **20.** **21.** **22.** **23.** **24.** **25.** **26.** **27.** **28.** **29.** **30.** ----- The share allocated by Luxembourg to investment expend­ iture has systematically exceeded 30% of its average mul­ ti-year defence effort and has followed an increasing trend: a significant ability to invest is the dominant feature of the Luxembourg Defence and its primary advantage for engag­ ing in multinational capability cooperation. Luxembourg’s defence effort comprises several elements, the most important being the budget of the Army, the budget managed by the Defence Directorate and the Mili­ tary Equipment Fund – the principal instrument for defence investment. This is supplemented by expenditure made by other ministries but having military relevance and purpose. One of the major challenges in particular is having the necessary budgetary flexibility to acquire complex capa­ bilities in the context of major, long-term multinational programmes. Planning in such circumstances depends not only on Luxembourg, but also on how the programmes progress, on disbursement scheduling and on other factors that can be difficult to predict and that require budgetary adjustments throughout a project’s life cycle and great re­ sponsiveness. The long-term ambition is to achieve budg­ etary stability based on fixed or multi-year expenditure. All other things being equal, and based on the growth fore­ casts available in early 2017, the defence effort will exceed 410 million current euros in 2020 so as to reach the target of 0.6% of GDP at that point. For the years 2017 - 2020, the Luxembourg Defence will thus have a total investment mar­ gin of some 310 million current euros. Beyond 2020, the Government has decided to plan for a constant increase in defence effort. Luxembourg’s commitment to increase its defence effort illustrates our willingness to shoulder our responsibilities as a European Ally and to continue improving our contri­ bution to solidarity-oriented burden sharing. A long-term resources and capabilities investment plan shall serve to sustain the defence effort, taking international require­ ments into account. The task of setting the time line and credible objectives commensurate with our country’s wealth will fall to future governments. The evolution of the defence effort must form a part of a sustained approach that also involves the gradual estab­ lishment of suitable structures. But given the complexity of the factors leading to the current security threats, simply increasing defence expenditure is an inadequate response. Continued investment in development cooperation is re­ quired to push forward action on conflict prevention. It is also necessary to spend better and to promote European cooperation initiatives in the area of equipment. Besides the financial criteria, other quantitative and qualitative aspects must be factored in to measure the real contributions made. Luxembourg will also continue to advocate an overarching and more differentiated view of national efforts in terms of contributions to stability and security, to include using Gross National Income (GNI) instead of Gross Domestic Product (GDP) when calculating the defence effort, GNI being more representative of Luxembourg’s economic reality. **d. Defence structures** Defence policy and defence effort planning are defined, managed and implemented on various levels: - The Minister of Defence defines and implements Lux­ embourg’s defence policy. - The **Defence Directorate advises and assists the** Minister in the development of defence policy and performs and supervises its implementation; it de­ fines and implements capability strategy and exercis­ es supervision and control of the administrative and budgetary management of the resources (human and financial) of Luxembourg’s Army. The Defence Direc­ torate is incorporated within the Ministry of Foreign and European Affairs. - **Luxembourg’s Army is placed under the responsibility** of the Chief of Staff and performs in-service support for the resources allocated by the Government in con­ nection with missions falling within the legal frame­ work. It manages the employment of the forces and assists in providing strategic advice to the Government on conditions for the utilization of forces and on capa­ bility development. The various evolutions described in these Guidelines have revealed the need to adapt the defence management **structures to ensure they are furnished with the necessary** human resources (adequate in number and background), as well as the decision-making processes needed to im­ plement an evolving defence policy and to properly manage the defence effort. To that end, a **new organizational chart for the defence** structures was adopted in September 2016 (see annex). This arrangement will provide for efficient implementation and monitoring of the Luxembourg Defence Guidelines and Master Plan. At the heart of this organizational chart lies an organizational rapprochement between the Defence Di­ rectorate and the Army Staff. - Increased staff numbers and the adoption of a new internal organization within the Defence Directorate make for better definition of tasks and better imple­ mentation of defence policy. Staffing levels have been increased at every level, particularly in capability in­ vestments planning and management, relations with the Army and legal review of the many dossiers in­ volving the Army and international relations. - Regarding the Army, the new organizational chart has made it possible to finalize the reorganization in­ itiated in 2007, which sought synergies between the Defence Directorate and the Army Staff and an op­ timized internal organization of the Army. The chart reflects evolutions in the field of defence and will enable the Army to branch out into new areas in the future. ----- The future Army Staff will have three divisions: **- a General Affairs Division** **- a Resources Division** **- an Employment Division** The General Affairs Division – with its more stra­ tegic dimension and in particular responsibility for defence planning, the Army’s international relations and the controlling function – will be collocated with the Defence Directorate for the purpose of enhancing synergies and cohesion. This collocation will group together civilian and military planning entities and bolster the strategic planning capability. This answers a requirement for functionally integrated processes suitable for managing simultaneously the policy and military aspects of crises, including at the planning level. The new structure will thus allow more integrat­ ed decision support processes to be implemented across the civilian and military defence structures. The Resources and Employment Divisions will be merged with the corresponding structures in the Diekirch Military Centre, optimizing personnel and the decision-making mechanisms within the Army. The new Army structure provides for a transition from a pure land Army towards a force that can gradually take on joint force functions to manage capabilities – air and aerospace in particular – likely to develop with the implementation of these Guidelines. - The strategic management of the defence effort will be in the hands of a Steering Committee chaired by the Minister of Defence and including representatives of the Defence Directorate and the Luxembourg Army. **e. Legislative and regulatory framework** Lastly, if the evolution of the Luxembourg Defence organiza­ tion and the army is to have concrete effects, changes to the legislative and regulatory framework governing defence pol­ icy must be brought about. Legislation and regulations will be introduced through legislative channels within the term of the current Government, particularly in the following areas: - the law governing military organization; - the law governing the Military Equipment Fund; - the law governing participation in external military op­ erations and civilian missions; - the Grand Ducal regulations governing the organiza­ tion of the army. ----- ### B. Evolution of the Luxembourg Defence for 2025+ Beyond the 2025 horizon, the goal of defence policy will be for the evolution of the armed forces to reflect the image of our country – integrated with the international commu­ nity, in full command of modern technology, receptive to research and development and open to EU citizens. The army will be equipped with modern military capabil­ **ities such as RPAS in the context of its ISR mission, and** will develop its Air Component by investing in new air plat­ forms and space technologies for communications & ob­ servation, medical evacuation and transport. A study will be conducted on physically embedding some of these air platforms at Luxembourg airport, with public and private synergies. New skill profiles will be defined within the military career pathways, making the armed forces more attractive and opening gateways and career development opportunities in the private sector. While career militaries must still be Luxembourg citizens, certain more technological functions may, under strict and limited conditions, be open to EU citizens. Multinational capability investment will become a pillar of national defence policy in line with the principles of inter­ national solidarity, synergy, integration and cooperation. Consideration will be given to establishing and tasking a national capability investment agency, with a view to im­ plementing a permanent, effective instrument for this long-term capability investment policy. This entity would be placed under the authority of the Defence Directorate. *** The Luxembourg Defence must evolve. To that end, (a) the defence effort must target capability sectors that shadow technological evolutions and that fall within priority areas for Luxembourg, **(b) Luxembourg’s Army will contribute** to implementing and deploying military capabilities while preserving its social role, and (c) the Luxembourg Defence must ensure that it has the necessary human resources to achieve its objectives. In view of the security developments and objectives de­ scribed in Chapter I, the Government intends to ensure that the defence policy and the upscaling defence effort: - enable our country’s policy and security objectives to **be implemented and our national and international** **levels of ambition to be achieved;** - **develop new capabilities within the Luxembourg** **armed forces, the Government wishing to seize the** opportunity offered by a change in defence policy and an increase in the defence effort to permit the Lux­ embourg armed forces to grow, modernize, acquire both new equipment and new skills, attract more diversely skilled personnel and offer new types of training for those joining the armed forces; - create **synergies with our international partners,** with national players and between the individual mil­ itary capabilities themselves; - offer the greatest possible benefit to the entire country and allow the growth of a national Defence Technolog­ ical and Industrial Base. **a. Main lines of capability development** Armed forces traditionally comprise three major compo­ nents: land, air and sea. Luxembourg’s armed force has historically been a land army. However, just as international developments have seen two new domains of military action emerge (space and cyber), the Luxembourg Defence and army have in recent years already begun working in these new areas and in the field of air operations. The Luxembourg Defence has traditionally specialized in land reconnaissance and operational support capabilities. In military terms, reconnaissance is part of the broader area of ISR – Intelligence, Surveillance & Reconnaissance. Reconnaissance enables a military contingent engaged in an operation to gather intelligence, by visual observation and using various means of detection, in particular to iden­ tify the risks to which deployed military personnel are ex­ posed, so as to protect them and to facilitate the planning and decision-making process. For 2025 and beyond, the Luxembourg Defence will effect a transition that will see the Luxembourg army outgrow its land dimension and that will furnish Luxembourg with an array of relevant and coherent tools for executing its missions. The army will remain at the heart of defence. **Future capability developments will be effected in coop­** **eration with the army and, as far as possible, army in­** **volvement in their implementation will be sought. More** detailed studies will need to determine precisely the extent of the armed forces’ ownership of capability development. All capability acquisitions will be implemented following internal consultation between the Defence Directorate and the armed forces. Luxembourg: **-** provides capabilities operated by its armed forces; **-** develops specialized capabilities and services draw­ ing on industrial know-how; **-** contributes to multinational capability initiatives and to collective capability-related programmes. An army, and military capability programmes, **cannot** **change overnight. The capability programmes will take** shape over a number of years. The troops must be reor­ ----- ganized, instructed and trained. We have made short and medium-term commitments in the context of the NATO Defence Planning Process (NDPP). However these com­ mitments already point towards a new direction, and the Luxembourg Defence has commenced planning in the light of future developments. *** In terms of capability investments and the organization of its army, the Luxembourg Defence organization will focus on ISR, a domain of action in which existing expertise can be built on and which resonates with competencies in a num­ ber of fields that are key for our country: communications, information, the satellite industry and data management. In general, the Luxembourg Defence will continue to rec­ ommend the development of support and sustainment ca­ pabilities whose implementation will take account of both the structural parameters of our armed forces and of the national and European technological and industrial base. In particular, the Luxembourg Defence advocates capa­ bilities that are relevant in the broadest possible range of situations, be it security crises, natural disaster impact management or humanitarian crises such as large-scale migratory movements. **ISR capabilities help to provide** enhanced situational awareness in such varied circum­ stances and are thus essential for civilian and military de­ cision-makers, particularly for the protection of deployed forces. Timely provision of adequate information improves the quality of decision-making and allows action to be taken in an appropriate, targeted and measured fashion, avoiding exposure to risk and unnecessary harm while us­ ing available resources to the best possible effect. **A capability is far more than a material asset. It covers not** only equipments but also competent personnel – instruct­ ed and trained in their use – together with an organization and infrastructure for their sustainment. The types of ca­ pabilities used by the armed forces and the conditions for their use are a matter of sovereign, national policy choices. Our capability development is guided by national political priorities, NATO defence planning and the EU capability development process. Our key partnerships provide the context for operational deployment. The purpose of developing military capabilities is to pro­ vide Luxembourg with a range of options for contributing to missions and operations with more varied, technological and up-to-date equipment. The goal is to have tools that are deployable – by the Luxembourg army, or with inter­ national partners, or through contractual arrangements with private-sector partners – in support of international military deployments. The increased defence effort associated with a greater assumption of responsibility on the part of Europe in the area of security and defence must be reflected in terms of **actual relevance: capabilities that are relevant in the con­** text of missions and operations, services that are relevant to national requirements, and economic relevance through the development of a Defence Technological and Industri­ al Base generating employment and driving research and innovation. Thus, within its means, Luxembourg contrib­ utes to eliminating critical European capability shortfalls, for instance through the establishment of a European air-to-air-refuelling capability. Luxembourg’s participation in the Alliance Ground Surveillance (AGS) programme and the launch of a Government communications satellite both contribute to meeting critical strategic requirements in the field of communications and observation and to consoli­ dating technological know-how in this field in Luxembourg. ----- ----- #### Defence Directorate ## Minister ## Minister #### Army ## DEFENCE ----- ----- ----- Copyright GovSAT ----- **b. The Luxembourg Army** The mission of Luxembourg’s armed forces is clearly set out in the legal framework. Engagement of the armed forces aims to prevent conflict situations or to put an end to them. In the current international context, and in the framework of our foreign and security policy, the relevance of the role of competent and professional Luxembourg armed forces is obvious. The armed forces’ personnel is the human face of our action abroad in operations, and their deployment, with the risks inherent to presence in a conflict zone, is the **ultimate demonstration of our solidarity and risk sharing** – its value is immeasurable. The armed forces’ personnel must be able to face these challenges in the best possible conditions, with the neces­ **sary equipment, leadership, instruction and training that** **are essential for their safety and for effective deployment.** This entails not only investments in more technology-ori­ ented capabilities but also the provision of comprehensive, modern and up-to-date equipment at every moment and for each soldier, for his or her everyday needs. The armed forces will also take care to preserve and ex­ pand its social role, which remains a priority objective for our armed forces and our country. An analysis will be con­ ducted to identify avenues for **improving this social role** (more career prospects, varied and interesting duties, training opportunities, etc.). Luxembourg’s armed forces must be capable of responding at any time to **national requirements and of participating** in **crisis management missions and in collective defence** and stability projection actions. Improving responsiveness (speed of deployment) and participating in rapid reaction groupings are also key challenges. The number and the na­ ture of military deployments has been changing for several years and has come to involve more than just exercises and peacekeeping operations. The armed forces have already adapted its internal structures to enable Luxembourg to ensure a military presence where necessary, in a manner commensurate with its resources. Luxembourg’s **interna­** **tional deployments will continue, but may change in na­** **ture: sending small, dedicated teams into the field to deploy** an essential capability (e.g. satellite communications) or providing a team of data analysts can be just as relevant, strategic and visible as mobilizing a whole platoon. The armed forces will develop **new skills and acquire** know-how and a high level of professionalism in new do­ mains. They will continue to deploy military personnel in crisis management exercises and operations, in line with policy decisions. **Luxembourg’s armed forces will continue to develop co­** herent, relevant, effective and useful capabilities in the context of our partnerships and will acquire the technical competence required to employ those capabilities. The armed forces evolution cannot be dissociated from the evo­ lution of the budget and capabilities of the Luxembourg De­ fence. Thanks to the new defence structures, the Defence **Directorate and the Army Staff will cooperate closely in** **capability planning, development and investment. Each** capability project will entail an analysis of its implementa­ tion, performed either directly by the Luxembourg armed forces or in partnership with national or international play­ ers. This analysis will, in particular, take into account poli­ cy priorities and human resources requirements/availabil­ ity. The reinforcement of the capability pillars has already been taken into account in the new organizational chart of the Defence Directorate and Army Staff. The army will maintain its role as a ground force within the Land Component, but its tasks will evolve in the oth­ er fields of action described above, in particular air, space and cyber. To this end, the armed forces will organize their **forces such as to perform their current tasks and take on** **new ones. The land army will thus accentuate its evolution** towards an armed force with joint capabilities. The Air Component, currently in its infancy, will be devel­ oped to take account of the capability developments de­ scribed above. Competencies will also be developed in the medical area, to help complete the military medicine project currently in preparation. The **Cyber Cell will continue working on the defence as­** pects of national and international strategies and will be further developed. The armed forces will assist in advancing defence in the di­ rection of high-tech-oriented capabilities, while sustaining its societal role. Beyond investments and acquisitions, and in addition to internal reorganization and the evolution of the Luxem­ bourg Defence, a central and vital concern needs to be ad­ dressed: **the diversification and extension of the armed** **forces’ tasks and competencies cannot be effected with­** **out diversifying and augmenting its human resources.** ----- **c. Human resources** The Luxembourg Defence must be able to rely on qualified personnel capable of addressing the complex challenges of an army that is evolving and engaging at national and international levels. The 2007 Reform set the authorized ceiling for the army’s establishment at nearly 1400. This ceiling is not a goal in it­ self: it sets a framework within which the army can evolve. The personnel situation continues to demand sustained at­ tention. To address the challenge of the human resources needed to implement its policy, the Luxembourg Defence must take account of the demographic realities and the constraints of a competitive labour market in a dynamic economy that is, to a very large extent, reliant on foreign, essentially European manpower. Currently, the area of de­ fence accounts for some 1% of the resident working pop­ ulation of Luxembourg nationals. A significant increase in the armed forces’ establishment can only be achieved through decisive action on the attractiveness of a career in the military and by occasionally extending recruitment opportunities to European Union citizens. The armed forces are in competition with the private sector in the labour market. The arrangements determining the attractiveness of enrolment since the abolition of compul­ sory military service in 1967 are continually adjusted in line with societal change. This approach is no longer sure to produce sufficiently long-term solutions. To prevent a rup­ ture, we need to rethink our model, taking account of so­ cial realities and considering the requirements dictated by the changing context and operational missions. Much has been done already: creation of an Army Information Bu­ reau, creation of a Luxembourg Army preparatory course (COPRAL) in the Ettelbruck technical college, adjustments to the recruitment of volunteer soldiers, introduction of di­ rect career officer recruitment for candidates with a mas­ ters degree, etc. Between now and the beginning of 2018, the Luxembourg Defence will conduct an in-depth analysis of recruitment procedures in the armed forces and will submit a recruit­ ment strategy and plan for the short, medium and longterm to the Government in Council. This strategy will be based on a consideration of demographic factors and the labour market in particular, and will cover everything touching on recruitment, attractiveness, status, training and careers within the armed forces, including: **- volunteer soldiers : ways of increasing the number of** volunteer soldier recruits who complete their contracts, more gradual integration of volunteer recruits in the military environment, particularly in terms of attaining physical fitness levels (longer support phase), analysis of duties and training for volunteer soldiers, preserva­ tion and expansion of the social role, provision for flexi­ ble periods of enlistment; **- corporals and NCOs: steps to promote skill develop­** ment in commanding soldiers to the highest standards of leadership and in mastering the level of technicality associated with new capabilities, by proposing suitable in-service training; **- officers: greater recourse to direct recruitment. This** will be the preferred method for meeting specific re­ quirements; Copyright NATO ----- **- all career paths: improved planning of individual** career paths, and development of decision-making criteria to improve the transparency of selections, in­ cluding in the area of managing rotations to postings abroad, in respect of which planning will be more systematic and longer-term, set in context with ca­ reer plans and functional criteria; provision of oppor­ tunities for career mobility; **- creation of new career paths to take account of the** diversity of the duties to be performed, contract du­ rations; **- recruitment of experts on a case-by-case basis;** **- study into improving the attractiveness of the armed** forces: communication campaign, communication through social media, increase in the number of fe­ male personnel, career management and advance­ ment, training, skills management, deployment plan­ ning, relevance of new technical domains, work-life balance; **- recruitment of career soldiers: revision of recruitment** conditions, occasional, restricted recruitment of for­ eign nationals, professional retraining, technological occupations; **- exchanges with, and secondment of personnel to our** bilateral partners. The Luxembourg Defence will also systematically inves­ tigate innovative means of developing and implementing capabilities based on partnerships with the private sector and national players in Luxembourg. In future, the Luxem­ bourg Defence will increasingly require dedicated person­ nel to temporarily perform specific duties in the context of national emergencies and operational deployments, in order to exploit complex, and often dual-use (civilian and military) capabilities. Such dedicated personnel, from the public or private sector, are of permanent value to our so­ ciety in performing professional functions and would be called upon to assist the nation in the event of a crisis sit­ uation. To this end, a study will be conducted to explore the merits and feasibility of creating a pool of specialized personnel who could occasionally be made available to the Luxembourg Defence on a voluntary basis. Participation in **such a service would, at all events, take place in cooper­** **ation with the employer, with a status to be defined. The** contribution of the Luxembourg Defence could involve, for instance, investments in dual-use resources, coverage of training or subsidizing personnel costs. In general, achieving synergies between the armed forces and other State institutions will foster interdepartmental mobility and improve the attractiveness of the armed forc­ es, which will consequently open up to a broader popula­ tion and gain access to more diverse personnel. In this connection, consideration will also be given to mak­ ing greater use of the possibilities of commissioning. In the context of cooperation with our key partners, the Luxem­ bourg Defence will also pursue a policy of drawing on in­ ternational expertise in joint projects, or seconding foreign military personnel. In order to attract the personnel it needs, the Luxembourg Defence must also position itself as an attractive employer by playing on its particular strengths: the armed forces as a dynamic, forward-looking entity offering a motivating living and working environment, personal and professional devel­ opment opportunities (including in new specializations), and the unique and rewarding experience of operations benefit­ ing the security of the nation and its population. ----- Copyright: SIP / Emmanuel Claude ----- ### III. Conclusions The Luxembourg Defence has already moved forward. In an environment of change, the Luxembourg armed forces have shown that they can adapt and continue to make effec­ tive and highly valuable contributions both in Luxembourg and on deployment. The Defence Directorate has prepared itself to plan and develop even larger and more complex capability programmes, while pursuing its traditional mis­ sion of advising the Minister, defining defence policy and overseeing the management of the armed forces. The changes we are confronting are not temporary ones. Consequently, these Guidelines trace the path to the future and to a restructured and modernized defence apparatus that has the human and material resources it needs and that is a reflection of our country – open, reliable, dynamic, innovative, technological, social and collaborative. In the matter of defence, Luxembourg’s contributions can­ not in all events make the difference through strength of numbers. It is by investing in dedicated, high value-added areas that Luxembourg will honour its commitments. The effort to diversify our capabilities while maintaining a spe­ cialized approach, drawing in particular on the competen­ cies of national industry, will be continued. ----- These Guidelines will be supplemented with an implemen­ tation / investment Master Plan that will allow the defence effort to be planned in detail. This plan projects beyond the 2020 horizon without prejudice to any subsequent deci­ sions taken in the medium term by future Governments. A major challenge will be to maintain the flexibility and re­ sponsiveness required to be able to adapt to the demands of a fluctuating and uncertain context in the short term, while initiating the necessary transition to new structures and the reorientation of the armed forces. However, the main challenge will be that posed by human resources. Without career soldiers, without volunteer sol­ diers and without civilian personnel, the Luxembourg De­ fence will not be able to achieve the ambition set forth in these Guidelines. At stake is Luxembourg’s credibility as a reliable partner and a contributor to security. ----- ----- ----- ### ANNEXES ### ANNEX A: Defence Directorate ----- ### ANNEX B: Armed Forces Organizational Chart ----- ### ANNEXE C: Glossary |3D|Diplomacy, Development, Defence| |---|---| |AGS|Alliance Ground Surveillance| |AWACS|Airborne Warning and Control System| |Benelux|Intergovernmental cooperation between Belgium, the Netherlands and Luxembourg| |CARD|Coordinated Annual Review on Defence| |CBRN|Chemical, Biological, Radiological and Nuclear| |CBSD|Capacity Building in support of Security and Development| |CHOD|Chief of Defence Staff| |COPRAL|Luxembourg Army preparatory course| |Coy|Company| |CSDP|Common Security and Defence Policy| |DCBI|Defence Capacity Building Initiative| |DTIB|Defence Technological and Industrial Base| |EATC|European Air Transport Command| |EDA|European Defence Agency| |eFP|enhanced Forward Presence| |EU|European Union| |EUBG|European Union Battlegroup| |FNC|Framework Nations Concept| |GDP|Gross Domestic Product| |GNI|Gross National Income| |GovSat|Government Satellite| ----- |3D|Diplomacy, Development, Defence| |---|---| |ISR|Intelligence, Surveillance and Reconnaissance| |KFOR|Kosovo Force| |LuxGovSat|Luxembourg Government Satellite| |MRTT|Multi-Role Tanker Transport| |NAEW&CS|NATO Airborne Early Warning and Control System| |NATO|North Atlantic Treaty Organization| |NCIA|NATO Communications and Information Agency| |NDPP|NATO Defence Planning Process| |NRF|NATO Response Force| |NSPA|NATO Support and Procurement Agency| |OCCAR|Organization for Joint Armament Cooperation| |OSCE|Organization for Security and Cooperation in Europe| |RPAS|Remotely Piloted Aerial System| |PESCO|Permanent Structured Cooperation| |SatCom|Satellite Communications| |TEU|Treaty on European Union| |tFP|tailored Forward Presence| |UAV|Unmanned Aerial Vehicle| |UN|United Nations| |VigilNat|Government plan for national vigilance against terrorist threats| |VJTF|Very High Readiness Joint Task Force| |WGS|Wideband Global Satellite Communications System| ----- -----