Germany faces a significant shift in defense policy as it seeks to align with NATO's new spending goals. The alliance has set an ambitious target for member states to allocate 5% of their GDP to defense by 2035. In response, Germany plans to boost its defense budget to 3.5% of GDP by 2029, marking a dramatic increase from its current 2%. This move is part of a broader effort to strengthen the Bundeswehr and make it the most formidable conventional army in Europe.
Chancellor Friedrich Merz has laid out plans to increase defense funding, despite facing opposition from some left-wing SPD members who view the strategy as excessive. Defense Minister Boris Pistorius has proposed expanding the military by 50,000-60,000 soldiers and forming new military units. These steps are aligned with NATO's goal of enhancing military capabilities across member states.
The financial implications of these changes are profound. Germany's defense budget is set to rise to nearly €170 billion, which represents a significant leap from the current €52 billion. This increase will be financed through greater borrowing, facilitated by an exception to the debt brake rule.
NATO's summit in The Hague underscores the urgency of these adjustments. The meeting emphasized the need for increased defense expenditures to counter threats from Russia and support Ukraine. The alliance's new spending goals are seen as a 'quantum leap' toward a stronger and more unified defense posture. While some member states, like Spain, have been granted leeway in meeting these targets, the overall direction is clear: a robust, collective defense is paramount in the face of evolving global threats.
