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Merz Endorses 5% GDP Defense Budget, Signals Break From U.S. Security Reliance

He said achieving the 5% target will require difficult budget cuts by shifting focus to generating domestic wealth.

Overview

  • The chancellor cited NATO guidance calling for 3.5% of GDP on military capabilities and 1.5% on supporting infrastructure.
  • He declared the era of European free-riding on American security is over and warned U.S. engagement in Europe may shrink.
  • Merz framed Russia’s war in Ukraine as an assault on European freedom and political order that demands a stronger defence posture.
  • He cautioned that meeting the spending goal will force economic and social sacrifices and urged a turn away from expanding state subsidies.
  • Relying on debt-financed security measures raises concerns over Germany’s constitutional debt brake and an expiring €100 billion defence fund.