Why this is important to Wisconsin businesses: The government’s plans could open doors for Wisconsin exporters in those sectors.
The continuing war in Ukraine is prompting the Netherlands to build its coffers for defense and for secure, sustainable energy.
The Dutch government said it will boost defense spending by more than 10% next year, investing in new tanks, fighter jets, frigates, drones, and air defense systems in order to strengthen its forces against new security threats, according to Reuters News Service. Defense spending will increase by €2.4 billion ($2.8 billion USD), raising the total annual defense budget to €24 billion ($28 billion USD).
“New threats demand action. Russia’s ruthless aggression in Ukraine shows an attack on the NATO alliance is no longer unthinkable,” Defense Minister Ruben Brekelmans said, according to the Reuters report. China, Iran, terrorism, and cyber attacks also pose potential threats to the country’s security, he said.
The Dutch government has been adding to its defense budget each year since Russia attacked Ukraine in 2022. The latest increase will put the Netherlands on course to meet the target of allocating 2% of gross domestic product to defense for the first time since NATO allies agreed on that threshold 10 years ago.
The reliability and safety of the country’s energy supply is also a concern, the government said. The Ukraine war has highlighted the vulnerability of Europe’s energy supply—in particular, its dependence on natural gas from Russia.
As of 2022, 82% of the Netherlands’ total energy supply came from fossil fuels, according to the International Energy Agency. At the same time, though, 36% of the country’s electricity needs came from photovoltaic solar power—the largest share of solar worldwide.
The government’s goal is to shift completely to sustainable energy sources by 2050. To accomplish that, a National Energy System Plan was introduced. Its targets include:
• Increasing installed wind capacity from 5 gigawatts (GW) to 35 GW by 2035 and 70 GW by 2050
• Upgrading and expanding the country’s electricity grid
• Adding four nuclear reactors
• Investing in battery sources for energy storage
• Exploring more use of heat pumps and low-emission hydrogen
Wisconsin’s top exports to the European Union already include aerospace products, engines, turbines, and power transmission equipment, so possibilities for engaging with companies in the Netherlands seem very favorable.
