German Chancellor Olaf Scholz has reiterated Germany’s commitment to allocate 2% of its gross domestic product (GDP) to defense spending, both in the current decade and beyond. This commitment marks a significant shift, as Germany is set to meet this target for the first time since the early 1990s.
Speaking at the Munich Security Conference, Scholz emphasized the need for European countries to take greater responsibility for their own security. This commitment aligns with NATO’s broader goal of increasing defense spending among its members.
Germany’s Scholz (Credits: CNBC)
NATO Secretary-General Jens Stoltenberg noted that 18 of the alliance’s 31 members will meet the 2% spending target this year, a sign of progress in European defense spending.
Germany’s efforts to bolster its defense capabilities include a new 100 billion euro ($107 billion) fund for the Bundeswehr, the German armed forces, announced in 2022 following Russia’s invasion of Ukraine. This funding is expected to support Germany’s defense spending goals in the short term.
However, concerns remain about sustaining this level of spending after 2027, when the current funds are projected to run out. Experts estimate that an additional 25-30 billion euros per year would be needed to maintain the 2% target, potentially requiring cuts in other areas such as welfare spending.
Germany’s commitment to meeting its defense spending target reflects a broader shift in European security policy, with countries increasingly focused on enhancing their own defense capabilities in response to evolving security challenges.
