Netherlands to invest over €1 billion to establish new armoured infantry battalion

The Netherlands will invest €1.1 billion to establish a new armoured infantry battalion and strengthen its military with additional funding for drones, combat vehicles, and medical support for the army.

The decision comes amid rising global tensions and an increasing threat from Russia, Caliber.Az reports, citing the Dutch Defence Ministry’s press service.

According to the Ministry, NATO has warned of a potential military conflict within the next few years, prompting the Netherlands to significantly bolster its defence forces.

The Ministry emphasised that the investment is necessary for the Netherlands and its European allies to take greater military responsibility and to be able to deploy forces more rapidly and sustain operations over longer periods.

Out of the total budget, €425 million will be dedicated to boosting combat capabilities. A new panther infantry battalion will be formed, equipped with modern combat vehicles, air defense systems, and all necessary resources. Investments will also focus on infrastructure and digitization to modernize the army’s operational readiness.

Some €125 million of the total amount will target combat support systems, particularly drones. Recognising the vital role drones play in contemporary warfare, the Ministry plans to acquire more attack and reconnaissance drones, alongside enhanced counter-drone measures.

Another €83 million will be allocated to extend the duration of operational deployments. Building on previous investments from the 2024 Defence Memorandum in transport and medical support, these additional funds will further strengthen logistical and medical chains essential for sustained missions.

To meet NATO commitments and national security needs amid rising tensions, the Netherlands is investing €80 million of the allocated amount to expand and scale up its armed forces. This includes recruiting personnel and enhancing training programs to maintain a flexible and ready military force.

The remaining €420 million will cover currency adjustments, salary increases, and the maintenance of existing defence plans. This portion is crucial to offset inflation, currency fluctuations, and to ensure the quality and quantity of equipment are not compromised. It also provides for competitive salaries to retain both military and civilian personnel amid changing market conditions.

By Khagan Isayev