Germany is set to significantly enhance its defense budget, as announced by Chancellor Friedrich Merz during a session in the Bundestag on Tuesday, just ahead of the NATO leaders’ summit in The Hague. This strategic move is driven not by a desire to placate U.S. President Donald Trump, but rather to address the looming threats posed by Russia.
“We will decide to invest significantly more in our security,” Merz stated, emphasizing the necessity due to Russia’s active threats against the freedoms across the Euro-Atlantic region.
In a bold commitment, Berlin revealed plans to elevate its military spending to 3.5 percent of its gross domestic product (GDP) by 2029, marking the most substantial rearmament initiative since the Cold War’s conclusion. This decision underscores Germany’s shift towards a more proactive defense posture in response to escalating geopolitical tensions.
Funding the Defense Increase
To support this increase, Merz’s administration intends to suspend the constitutional debt brake, seeking approvals from the European Union (EU) to classify defense expenditures as exceptional. This move will enable Germany to navigate the EU’s strict deficit regulations while bolstering its military capabilities.
Under the new budget plan, Germany will allocate €153 billion for defense by 2029, a substantial rise from the €86 billion designated for 2025. Additionally, the German government has committed to providing €8.3 billion in military aid to Ukraine for the upcoming year, reinforcing its support amidst ongoing conflicts.
NATO Defense Spending Targets
The forthcoming summit in The Hague is focused on raising NATO’s defense spending target from 2 percent to 5 percent of GDP. This proposal includes 3.5 percent earmarked for core defense and an additional 1.5 percent for infrastructure and cybersecurity improvements. Although U.S. pressure, particularly from Trump, has influenced this push, Merz framed Germany’s forthcoming contributions as a pragmatic response to current realities rather than mere compliance with transatlantic expectations.
Merz highlighted the importance of strength in the face of aggression, stating, “[Russian leader Vladimir] Putin only understands the language of power,” in light of intensified Russian military actions in Ukraine and faltering diplomatic efforts for ceasefire. He reiterated Germany’s support for new EU sanctions aimed at Russia’s oil sectors and reaffirmed Germany’s commitment to NATO’s eastern defenses, including the deployment of troops in Lithuania.
While the spending increase was formally approved by NATO allies over the weekend, Spain has indicated a desire for reduced expenditure obligations, prompting other nations like Belgium to seek similar leniencies regarding the spending targets. A consensus communiqué is anticipated to affirm the proposed 5 percent allocation, coupled with a midterm review scheduled before 2030.
Following the NATO summit, Chancellor Merz will proceed to Brussels to engage with EU leaders, advocating for streamlined defense procurement processes and necessary regulatory reforms. “Security,” he concluded to lawmakers, “is the condition for freedom, for prosperity and for peace — and we must be strong from within, and outward.”