The EU country will struggle to meet the higher military spending levels pushed by the US, the budget minister has told FT

Belgium is preparing to raise debt and cut welfare to meet NATO's minimum military spending target, the EU country's budget minister has said.

Vincent Van Peteghem told the Financial Times on Wednesday that Brussels recently agreed to lift its 2025 military budget to 2% of GDP through a mix of temporary cash injections, creative accounting, and structural reforms.

The planned hike in military spending could exacerbate the budget crisis as debt mounts. Recent government plans to cut social services have sparked protests, with over 100,000 people rallying in Brussels in February.

Belgium had previously planned to meet the 2% target only by 2029. Military spending currently stands at around 1.31% of GDP, or roughly 8 billion ($8.5 billion), according to Defense Minister Theo Francken.

The shift comes amid pressure from Washington and ahead of a NATO summit in June, where members are expected to consider raising the spending target to above 3% of GDP. US President Donald Trump has urged the bloc members to increase military spending to 5%, warning that countries that fail to do so may no longer be guaranteed American protection.

Higher spending on military budgets would take a toll on the EU's welfare programs, Van Peteghem warned.

Last month, the European Commission proposed exempting military budgets from fiscal rules and offering 150 billion in loans as part of its 'ReArm Europe' plan, which aims to mobilize up to 800 billion through debt and tax incentives for the bloc's military-industrial complex.

Van Peteghem said Belgium would tap both options to fund additional military spending this year.

To maintain the 2% level, the government plans to raise more debt and may privatize state-owned assets, the minister said. The remaining gap would be filled through spending cuts, including curbs on unemployment benefits, pension reforms, and tax changes.

"But of course, we will need to do more," Van Peteghem, who also serves as deputy prime minister, said.

France has also announced plans to cut 5 billion from its budget, with some of the savings potentially redirected to military spending.

Moscow has condemned the EU's military buildup. Kremlin spokesman Dmitry Peskov called it "a matter of deep concern," noting that it was aimed at Russia.