“Stimulating.” For example, State Secretary Alexia Bertrand (Open Vld) mentioned economist Peter De Keyzer’s idea to introduce a ‘defense voucher’ by analogy with the state voucher. In these turbulent times, citizens could then invest money directly in our national security. Prime Minister Alexander De Croo (Open Vld) and Minister of Finance Vincent Van Peteghem (CD&V) are also interested in it.
With an increasingly aggressive Russia, the war in Ukraine and likely presidential candidate Donald Trump flirting with leaving NATO, it is essential that Belgium invests in rearmament and modernization of the armed forces, writes economist Peter De Keyzer in an opinion piece in ‘De Tijd’. ‘.
The problem is that Belgium is currently facing a budget deficit of almost 28 billion euros. In the coming years, our country in Europe will have to make cuts of more than 27 billion euros. In other words: there will probably not be much money left over to invest in Defense, especially because the costs of aging and social security only threaten to increase.
Own European weapon systems
De Keyzer therefore proposes introducing a ‘defence voucher’. That would be the same principle as the government bond, but that money is used to pay off our country’s debt mountain and is therefore not intended for one specific purpose. With a ‘defense voucher’ – as it already existed in the United States and the United Kingdom after the Second World War – it therefore flows integrally to national security.
Prime Minister Alexander De Croo (Open Vld) himself suggested the idea of European defense bonds on Tuesday. Other European leaders, such as French President Emmanuel Macron, were also interested in this. That money could, for example, be used to develop European weapon systems. Our continent is currently still very dependent on American material. “If Europe can develop this itself, Europeans will also get a return on their investment, because it is positive for business and industry here,” his cabinet said. In addition, the government must continue to invest in defense, De Croo emphasizes. In 2020, only 1.01 percent of GDP went to land defense, in 2024 this should be 1.25%. An improvement, but still well below the NATO standard of 2 percent.
‘Return needed’
Minister of Finance Vincent Van Peteghem (CD&V) also calls the idea worth investigating. “At European level, we have been thinking for some time about how we can use the money of investors and private savers to support the challenges of our society. Defense is certainly one of them,” he says. “The most important thing is that citizens also receive a return on their investment. This is the case with government bonds: there is little risk involved, with a certain return. With a ‘defense bond’, that return may not be so clear.”
So people in Wetstraat are already enthusiastic about the idea. But the practical effect is a different matter. It would be the very first time that Belgium would create such a bond, which is specifically used for one purpose. It would also be a first at European level. Technically and legally it can therefore still be a daunting task. For now, it will remain on the drawing board for a while.
Flemish economist comes up with a special proposal: “Forget the government voucher, go for a defense voucher”
No one wishes Van Peteghem new state voucher success: “We shouldn’t play Sinterklaas either, right?”
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2024-02-16 17:55:43
#Wetstraat #interested #defence #voucher #Provocative
