Francken: "Defence investment must strengthen our own industry and drive innovation"

14 July 2026
Theo Francken

The federal government has approved a draft bill establishing a robust legal framework for companies, research centres and knowledge institutions developing defence-related technologies and manufacturing capabilities. The aim is not only to strengthen Belgium's military capabilities, but also to provide a lasting boost to the country's industry, innovation and employment.

"Investing in defence also means investing in our own industrial and technological base," said Defence Minister Theo Francken.

Defence as a driver of innovation

The draft legislation is a key pillar of the Defence, Industry & Research Strategy (DIRS), through which the government aims to expand Belgium's defence technological and industrial base.

According to Defence Minister Theo Francken, defence should be seen as far more than a budgetary expense. Investments in security should also generate new technologies, stimulate economic growth and create highly skilled jobs.

"DIRS is the largest innovation accelerator and incubator we have ever launched. We want our companies and research centres to help build the defence capabilities of tomorrow. That will strengthen our security and strategic autonomy while creating high-quality jobs and fostering innovation here at home," Theo Francken said.

A legal framework for long-term investment

The legislation will make it possible to support companies, research centres and knowledge institutions over the long term through multiannual grants and repayable advances. By providing greater legal certainty, the government aims to encourage organisations to invest in developing new technologies, products and capabilities for defence.

"In these geopolitically uncertain times, it is essential to continue investing in defence to safeguard the security of our society and protect our freedom and way of life," the government said. "At the same time, we must ensure that these investments strengthen the innovative capacity and Competitiveness The extent to which companies in one country can compete with similar companies in another country. A law came into force in Belgium in 1996 to monitor competitiveness. This stipulates that Belgian salaries may not evolve faster than the average of those in the three neighbouring countries. The Central Economic Council (CEC) performs an annual measurement to see if the objectives have been obtained. competitiveness of our own industry."

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