Security and defence are no longer merely a budgetary burden, but a historic opportunity: a growth engine for industry, innovation and productivity, at scale and with broad societal value. Under the pressure of the war in Ukraine, hybrid threats and a shifting trans-Atlantic relationship, a more autonomous European defence market is taking shape fast. In this landscape, SFPIM Defence - the new federal defence investment fund under the Federal Holding and Investment Company - is the missing link: the instrument to mobilise private and institutional investment capital for Belgium’s dual-use economy, and so put the country on the European map. In a new whitepaper, Itinera fellows Julien De Wit and Marc De Vos set out how Belgium can seize this opportunity - and what it will take not to miss it.

At last - and the clock is ticking

Belgium finally has a sovereign defence fund. It has taken a long time, too long, and the clock is ticking. The 2026-2027 window is narrow: defence spending is surging across Europe, new EU financing instruments are coming online, and Belgium is accelerating its own efforts. The first deals will be strategically formative: they will help set the fund’s reputation and pipeline. What matters now is a fast restart, with effective governance, sufficient capital and the right capacity. Having a fund is one thing; turning it into a meaningful instrument that makes a difference is quite another.

The critical success conditions

The real test lies not in the fund’s existence, but in its execution. For De Wit and De Vos, success hinges on a handful of political and governance conditions:

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No Belgian complexity. The fund needs clear governance, strong coordination and a de facto one-stop shop - for companies and co-investors alike. Fragmented competences and institutional paralysis are the single greatest threat.

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Speed and a clear niche focus. Belgium must choose where it makes a difference in the European value chain - from C4ISR and drones to cyber, space and advanced materials - and move on it quickly and with discipline, with flexible ticket sizes and transparent criteria.

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Synergy with defence and government as a hub. The real opportunity lies in linking the fund to defence policy, defence procurement and foreign policy, as a lever for transnational investment and coalitions with EU and NATO partners (Benelux, France, the Nordic countries).

On those conditions, SFPIM Defence can become a catalyst for a Belgian industrial renaissance in security and defence - anchored in jobs, technology and export capacity, and backed politically across legislative cycles.