Peter Van Duijvenvoorde MP submits parliamentary questions about the tens of billions of euros leaking away to foreign defence industries

The government wants to double defence spending over the next ten years from 20 billion to nearly 40 billion euros. This is in line with the new NATO standard stating that 3.5 percent of gross domestic product must go directly to defence expenditure. In theory, this astronomical investment could contribute to economic growth, innovation and the strengthening of Dutch security. But new research by the Netherlands Bureau for Economic Policy Analysis (CPB) shows that these billions in investments in reality yield hardly anything for the Netherlands. The vast majority of the new investments will flow abroad, leaving the Dutch economy behind.

It is estimated that 61 percent of the new defence investments will be spent on importing equipment such as aircraft, weapon systems and vehicles. Dutch companies simply do not benefit from this. In addition, the CPB warns that the higher spending may even have a negative impact on the economy. Labour shortages will increase further, as defence wants to hire more staff. In fact, the economy will shrink as a result, because defence exacerbates labour shortages in sectors that do generate economic growth. Furthermore, other investments will be crowded out. More money for foreign manufacturers logically means less money for other sectors that do contribute to the growth of the Dutch economy.

Although the cabinet claims that these billions generate employment, innovation and growth, the facts show a very different picture. To obtain clarity about these contradictions and to make the real consequences of the billions in spending visible, Peter van Duijvenvoorde is submitting parliamentary questions to the Minister of Defence.

Written questions from MP Van Duijvenvoorde (FVD) to the Minister of Defence regarding the economic impact of additional defence spending according to the Netherlands Bureau for Economic Policy Analysis (CPB).

1. Is the minister aware of the NOS article – based on research by the CPB – about the limited economic impact of additional defence spending?
   
    
2. How does the minister assess the CPB study indicating that most defence investments will not generate economic growth in the Netherlands?
   
    
3. What is the minister’s plan to prevent additional investments from merely leading to budget stacking without operational improvement?
   
    
4. Why does the cabinet choose to spend Dutch investment expenditure abroad on a large scale?
   
    
5. Is the minister willing to develop a plan to strengthen the Dutch defence industry so that less Dutch taxpayers’ money leaks abroad?
   
    
6. How will the minister prevent further labour market shortages caused by defence attempting to recruit additional personnel?
   
    
7. Can the minister rule out that the additional defence spending will be financed through tax increases which may negatively affect the Dutch economy, as the CPB warns?
   
    
8. Why does defence invest relatively little in so-called ‘dual-use’ technology, which also strengthens civilian innovation?
   
    
9. How does the minister explain that the cabinet presents defence expenditure as if it will generate economic growth, while the CPB now clearly shows that this is barely the case?
   
    
10. Is the minister willing to be more transparent about the limited impact that additional defence investments will have on the Dutch economy?
    
     
11. Does the minister share the view of Forum for Democracy that defence investments – where possible – should benefit the Dutch economy and the Dutch defence industry as much as possible?
    
     
12. Can the minister provide insight into the consequences for the labour market when defence focuses on expanding its workforce?
    
     
13. Is the minister willing to focus primarily on Dutch production and industry rather than on foreign suppliers?
    
     
14. Can the minister compile a transparent cost-effectiveness analysis clarifying to what extent additional spending actually contributes to the resilience and security of the Netherlands?
    
     
15. How do investments in equipment such as weapon systems and vehicles relate to what is considered mainly a digital threat?
    
     
16. How does the minister justify that Dutch tax funds mainly strengthen foreign defence industries – and thereby their resilience?
    
     
17. Does the minister see possibilities to deploy Dutch tax funds more for the Dutch defence industry and Dutch resilience?
     

How will the minister ensure that defence spending is maximally effective?