Luxembourg parliament backs second military satellite as defence spending ramps up

Parliament has approved plans for Luxembourg’s second military satellite, dubbed GovSat-2, following a vote on Wednesday.

The bill “authorising the government to finance the acquisition, launch and operation of the GovSat-2 government and defence communications satellite,” passed, the Luxembourg Directorate of Defence said in a press release.

The satellite will join GovSat-1 in providing secure military communications and data transmission between EU and Nato military allies over Europe, Middle East and Africa.

“Current political developments highlight the importance of strengthening Europe’s strategic autonomy,” Defence Minister Yuriko Backes said in the statement issued by the Directorate of Defence.

“For the GovSat-2 programme, we have therefore given priority to European partners: the satellite will be built by the French company Thales Alenia Space, integrating Luxembourg companies into the value chain, and the satellite is expected to be launched into orbit by the European company Arianespace,” Backes added.

Luxembourg has pledged to spend 5% of gross national income by 2035, up from less than 2%, as part of a Nato target set last year.

The Chamber of Deputies approved a €301 million budget for the project, including funds to operate GovSat-2 over 12 years following its launch.

The government also said that deputies approved an emergency reserve of €15 million “to respond to any technical, operational or geopolitical contingencies inherent in the GovSat-2 programme, which will run for nearly two decades.”

The first project, GovSat-1, ran 80% over its initial budget, with a damning parliamentary report published in 2023 stating that the government misinformed lawmakers about the contract.

The bill on Wednesday passed with 57 votes in favour, with two Dei Lénk MPs against and one abstention.