Germany Faces Pressure to Drastically Increase Defense Spending

As NATO allies consider higher defense budgets, Germany debates how to fund significant military investments without derailing its economy.

US President-elect Donald Trump has called for NATO members to raise defense spending to 5% of GDP, a significant increase from the current 2% target.
Germany, currently spending 2.1% of GDP on defense, faces internal debate over raising its budget to 3.5% or even higher, with some leaders deeming such increases unrealistic.
Chancellor Olaf Scholz and opposition leaders argue that defense budgets should reflect actual security needs rather than arbitrary GDP percentages.
Economists and policymakers warn that funding higher defense spending could require controversial cuts to social programs or increased national debt, sparking political tensions ahead of Germany's snap elections next month.
Critics question whether such massive increases in defense budgets would translate into greater military capability, citing limited production capacity and rising costs in the defense industry.