Luxembourg Issues First-Ever War Bond to Meet NATO Defense Spending
Luxembourg has issued its first war bond since World War Two, becoming the first EU country to do so, in an effort to bolster NATO defense spending. The bond aims to raise €150 million from private savings, offering a fixed interest rate of 2.25% over three years, with subscriptions open from January 15 to January 30. Funds raised will support the country's annual defense budget of €1.2 billion, with a committee overseeing the allocation and annual reporting.
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Luxembourg issued its first war bond, becoming the first EU country to do so since World War Two. Announced by Finance Minister Gilles Roth, the bond aims to access €33.4 billion in private savings and is limited to €150 million.
Subscriptions run from January 15 to January 30, with a minimum of €1,000 and a maximum of €150,000 per person. The bonds, which will offer a fixed interest rate of 2.25% for three years starting February 5, aim to raise additional funds for NATO requirements, with the country currently spending €1.2 billion annually on defense. A defense bond committee will determine the allocation of the raised funds and publish an annual report.
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