VZCZCXRO6802
PP RUEHAG RUEHROV
DE RUEHLE #0494/01 3541549
ZNY CCCCC ZZH
P 201549Z DEC 07
FM AMEMBASSY LUXEMBOURG
TO RUEHC/SECSTATE WASHDC PRIORITY 6166
INFO RUEHXP/ALL NATO POST COLLECTIVE
RUCNMEM/EU MEMBER STATES
RUEKJCS/JOINT STAFF WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 LUXEMBOURG 000494 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/WE, EUR/RPM 
BRUSSELS FOR DAO FAGUNDES AND ODC SALVI 
 
E.O. 12958: DECL: 12/20/2017 
TAGS: MARR PGOV NATO MOPS PREL EU LU
SUBJECT: LUXEMBOURG APPROVES COMPREHENSIVE MILITARY REFORM 
PACKAGE 
 
REF: A. 06 LUXEMBOURG 44 
     ¶B. 06 LUXEMBOURG 347 
 
Classified By: DCM Steven H. Kraft for Reasons 1.4 b & d 
 
¶1. (C) SUMMARY. The Luxembourg Parliament passed a 
long-anticipated military reform package on 19 December 2007 
without objection.  Key provisions include the creation of 
"Available Operational Units" (or UDO in French) which are 
available for service abroad, expanding the size of the army 
by nearly 25%, extending the standard enlistment contract, 
and elevating the position of the CHOD to the rank of 
general.  In parallel, a bill was also passed which 
authorized 155 million EUR for the procurement of new army 
equipment and increased spending to develop specialized niche 
capacities.  Of all of these, the creation of the UDOs is the 
most significant to our interests as it will allow Luxembourg 
greater flexibility to plan for future participation in NATO 
and EU operations such as the NRF and EU Battle Groups.  END 
SUMMARY. 
 
¶2. (U) On 19 December the Luxembourg Chamber of Deputies 
passed a long-awaited comprehensive military reform package 
that was more than three years in the making (Refs A & B) by 
a unanimous vote, though with 7 abstentions.  The bill 
creates "Unites de disponibilite operationnelle" (UDO) (or 
"Available Operational Units" in English) and all personnel 
assigned to UDOs are available for service abroad by virtue 
of their contract, another change authorized in this 
legislation.  In return for their availability for service 
abroad, UDO soldiers will receive a bonus of 350 EUR per 
month as well as increased preference in post-military 
service civil service hiring.  In order to man the UDOs the 
bill also authorizes an increase in total army end strength 
from 1,127 to 1,390.  Finally, the bill also elevates the 
CHOD to the rank of general vice the current rank of colonel. 
 
 
¶3. (U) At the same time a second bill was also approved which 
authorized the expenditure of 155 million EUR in defense 
spending.  120 million of this was specifically designated 
for the purchase of reconnaissance vehicles, 20 million for 
tactical vehicles, and 15 million for logistical vehicles. 
The bill also authorizes further expenditures in 
previously-identified 'niche capacities' which the GOL has 
sought to further develop including water purification, 
de-mining/EOD, and communications support (Ref B). 
 
¶4. (U) These changes will give Luxembourg the flexibility to 
plan for participation in future NATO and EU missions.  To 
this point, the Luxembourg Army was unable to exactly 
pre-determine how many soldiers would be available for 
deployment abroad and thus unable to provide a figure to 
political decision-makers for planning participation in 
future NATO/EU operations.  The creation of the UDOs now 
gives the GOL a reliable cadre of professional soldiers whom 
it knows it can count upon for future planning 
considerations.  This is especially important as Luxembourg 
has already committed to participating in the French-German 
EU Battle Group during the 2nd half of 2008 as well as 
committing a reconnaissance platoon to NRF 15 in 2010. 
 
¶5. (U) The opposition DP (Liberal) and ADR (far Right) 
parties voted with the government and were mostly supportive 
in their comments.  Criticism of the proposed reforms, both 
during the public and parliamentary debates, focused almost 
exclusively on two issues - the impact of the increase in 
military spending on Luxembourg's budget deficit and the 
possible creation of a "2-class" army.  In their somewhat 
negative opinions, both the Council of State (the upper 
consultative body of Parliament) and Chamber of Commerce both 
raised serious concerns about the budget deficit.  For their 
part, the Greens and press focused on what the Greens called 
the creation of a "2-speed army" where some units had 
different contracts, were paid more, were better equipped, 
and were afforded better post-military employment 
opportunities (the UDOs) than the others.  In the end, the 
only formally-recorded discontent with the bill was the 7 MPs 
from the Greens who abstained from the 19 December vote. 
 
¶6. (C) COMMENT.  These reforms are very a positive 
development for Luxembourg in terms of its ability to 
participate in NATO and EU missions.  Post has been 
 
LUXEMBOURG 00000494  002 OF 002 
 
 
encouraging the GOL to institute these reforms since they 
were first proposed by the then-newly formed government in 
¶2004.  The resounding lack of any significant opposition in 
the end seems to validate the GOL's relatively slow approach 
towards the reform process.  Despite the very small size of 
its army, Luxembourg has maintained a significant op-tempo in 
terms of forces deployed in support of missions including 
ISAF, KFOR, the EU missions in Bosnia, Congo, and Chad, and 
UNFIL (Lebanon).  END COMMENT. 
WAGNER