Dutch banks and pension funds will no longer be allowed to invest in companies involved in the manufacture of cluster bombs in future.

A majority of the Lower House supported a motion submitted by the Socialist Party and the Labour Party.

Socialist Party MP Krista van Velzen, who has been working on a ban on cluster bombs for many years, called the vote “a revolutionary step”.

She pointed out that Finance Minister Wouter Bos was reluctant to introduce the measure as he preferred companies to act voluntarily. According to Catholic peace organisation Pax Christi, Fortis Netherlands, ING and Rabobank are on the right track. Pension funds ABP and PGGM have ended all investments in this area.

Cluster bombs are made up of hundreds of smaller bomblets. Many of them do not explode on impact, making them dangerous to civilians long after a conflict has ended.

A Pax Christi report says there are 140 financial institutions throughout the world which invest in eight cluster bomb producers. A spokesperson for the organisation called the vote “An enormous boost to the worldwide campaign against financial investment in cluster bombs.” According to Pax Christi it shows the Netherlands is leading the way on this issue.

Photo: Cluster bomb - Flickr/televiseus