This night the Belgian Parliament approved a law forbidding investments in cluster munitions. Belgium is now the first country to prevent the flow of money to producers of cluster munitions. The fact that such a ban is necessary is clear from the report ‘Explosive Investments’ that Netwerk Vlaanderen published earlier this week. The report reveals that 68 international bank groups invest a combined total of more than €13 billion in cluster munition producers.

No Belgian money for cluster munitions

 

Senator Philippe Mahoux submitted the resolution in the Belgian Senate. This was supported by members of the Chamber of Representatives Dirk Van der Maelen and Annemie Roppe. The law forbids banks and investment funds operating on the Belgian market from offering credit to producers of cluster munitions. The purchase of shares and bonds issued by these companies is also prohibited. This law will have far reaching implications for financial institutions in Belgium. Investments in some of the largest weapon producers such as Northrop Grumman, Lockheed Martin, ATK, Thales, General Dynamics, Textron and Gencorp must be brought to an end. Only investments made via index funds, and the financing of projects of these companies that are clearly unrelated to cluster munitions will be allowed. The law also obliges the government to draw up a "black list" of cluster munition producers.

 

 

Since 2003 Netwerk Vlaanderen has been running the campaign " My Money. Clear Conscience?" that opposes investment in cluster munitions. Some banks, such as KBC, have taken their responsibility seriously and have decided to completely end their investment in cluster munitions. Banks such as Fortis and ING have partially excluded cluster munitions. Other bank groups, such as AXA, continue to invest in these controversial weapons. The passing of this law ensures that the money of Belgian bank clients, no matter where they bank, is prevented from ending up in the hands of cluster munition producers.

The need for an international approach

 

Belgium is taking the initiative at an international level. This law represents the first concrete steps towards achieving the aim of the European Parliament resolution calling on all EU member states to ban investments in cluster munitions. The need for an international ban is clear from the research presented in the report ‘Explosive Investments.’ Between 2004 and 2006, 68 bank groups from 13 different countries invested billions of dollars in 6 producers of cluster munitions. Recent research by Handicap International shows that 98% of all victims of cluster munitions are innocent civilians. In Oslo last week more than 40 countries declared that there should be an international treaty banning cluster munitions agreed in 2008. Netwerk Vlaanderen calls for a ban on investments in cluster munitions to be included in this treaty.

 

 

Netwerk Vlaanderen
Vooruitgangstraat 333/9
1030 Brussels Belgium
Tel. + 32 (0)2 201 07 70 – Fax. + 32 (0)2 201 06 02
www.netwerkvlaanderen.be