Belgium May Sell Stake in Belfius to Boost Defence Budget, Says Report

As NATO allies ramp up commitments to defense spending, Belgium may be preparing to partially privatize Belfius, its state-owned bank-insurer, in a bid to raise funds. According to Belgian financial newspaper De Tijd, the government is exploring the sale of a 20% to 30% stake in Belfius — and a decision could come before the summer recess begins on July 21.

Citing unnamed sources, the report says the sale would help raise billions of euros to meet Belgium’s pledge to increase military spending, as the country aligns with NATO’s defense investment targets.

Privatization Plans Still Under Discussion

The exact method of the potential sale has not yet been finalized. The government is reportedly weighing two options:

• A direct sale to institutional investors or strategic partners

• A public listing (IPO), which could open Belfius shares to wider market participation

Discussions are still in early stages, and no official timeline has been confirmed.

Why Sell Belfius Now?

Belgium has committed to raising its defense budget to 2% of GDP by 2029, in line with NATO standards. Currently, the country’s defense expenditure stands at around 1.3% of GDP, and it has never before reached the 2% benchmark.

In June, NATO members also agreed on an even more ambitious goal — raising total defense spending to 5% of GDP by 2035. For Belgium, this means significant additional funding will be needed in the coming years.

A partial sale of Belfius, which remains one of Belgium’s largest and most stable financial institutions, could provide a timely source of revenue without requiring new taxes or increased borrowing.

A Look Back: The Origins of Belfius

Belfius was born in the wake of the 2008 financial crisis. In 2011, the Belgian government purchased the Belgian arm of the then-troubled Franco-Belgian bank Dexia for €4 billion ($4.69 billion). Since then, Belfius has rebuilt its operations and reputation, becoming a key player in Belgium’s banking and insurance sectors.

The government has long held full ownership of Belfius, although there has been occasional political debate about reducing its stake. This latest move would mark the first major step toward privatization.

Reactions and Next Steps

Neither the Belgian government nor Belfius provided immediate comment on the De Tijd report. A Belfius spokesperson declined to address the speculation, while government officials have not responded to media inquiries.

If confirmed, the sale could represent one of the most significant financial moves by the Belgian government in recent years — with implications for both national security funding and the country’s financial markets.

As global tensions increase and NATO defense commitments grow stronger, Belgium appears poised to leverage its financial assets to meet strategic goals.