Germany has announced plans to increase its defense spending to 3.5% of its gross domestic product (GDP) by 2029, marking a major step in strengthening its military. Finance Minister Lars Klingbeil revealed the new government’s budget plans on Tuesday, ahead of the NATO summit focused on raising defense budgets across member countries.
Chancellor Friedrich Merz’s coalition government recently pushed through parliament measures to ease strict borrowing rules. This move will allow Germany to increase defense spending beyond the current limits, helping the country meet NATO’s proposed target of 3.5% of GDP, plus an additional 1.5% for defense-related infrastructure.
Klingbeil said that Germany’s defense budget will reach 2.4% of GDP in 2025, with plans to gradually increase it each year until 2029. He also emphasized the need for efficient spending, suggesting more cooperation within Europe on military procurement, research, and development to maximize resources.
Germany has faced criticism for years due to its failure to meet the previous NATO goal of spending 2% of GDP on defense. However, after Russia’s invasion of Ukraine in 2022, former Chancellor Olaf Scholz pledged to raise spending to that level and introduced a special fund of 100 billion euros for military modernization.
Looking beyond defense, the government aims to increase overall spending from 503 billion euros in 2025 to nearly 574 billion euros by 2029. Additionally, a 500 billion-euro fund will be established to upgrade Germany’s infrastructure over the next 12 years, signaling broad plans for national growth.
Chancellor Merz has committed to providing all necessary funding to make Germany’s military the strongest conventional force in Europe. This significant investment reflects Germany’s growing focus on security amid changing global threats and increasing pressure within NATO.