Tanks Versus Pensions? How European NATO Countries Fund Defence and What Belgium Can Learn

“On average, European countries easily spend up to a quarter of their national income on pensions, health, and social security systems, and we need only a small fraction of that money to make defence much stronger” (Rutte, 2025).

Speaking before the European Parliament, NATO Secretary-General Mark Rutte urged national representatives to reassess their spending priorities to strengthen defence budgets. He specifically highlighted the financial burden of social welfare states, arguing that even a small reallocation of funds could significantly bolster European military capabilities, suggesting that European governments are faced with a tanks versus pensions dilemma. But is this trade-off real or merely rhetorical framing?

As the Russian threat endures and Washington escalates its demands on its allies, European NATO countries face increasing pressure to enhance collective deterrence. This requires the reconstruction and modernization of their armed forces, an effort that comes with substantial financial demands. However, for many countries, these demands arise in a challenging economic context, marked by inflation, energy price instability, high debt, and sluggish growth. Numerous European countries have developed a structural reliance on benefiting from the peace dividend. Meanwhile, NATO’s 2% GDP defence spending target is increasingly seen as outdated, with the upcoming 2025 NATO summit expected to introduce a new benchmark.

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