Germany plans to significantly increase its defense budget over the next four years, raising it by more than 70% to €162 billion by 2029. This growth will allow the country to outpace France and the United Kingdom in defense sector funding.
This is reported by Business • Media
Strategic Rearmament in Response to Challenges
Chancellor Friedrich Merz has initiated a large-scale rearmament of Europe’s largest country in light of increasing threats from the Russian Federation and the unstable situation in the United States. According to updated budget plans, the country’s military spending will reach €162 billion by 2029, while in 2025 it will amount to 2.4% of GDP, increasing to about 3.5% of GDP by 2029. An annual allocation of €8.5 billion is planned for military assistance to Ukraine until 2029.
“This plan elevates Germany, which has long lagged behind other NATO members in defense spending, to first place ahead of France and the United Kingdom on the path to a new defense goal of 5% of GDP,”
Funding and New Debt Policy
The increase in defense spending has become possible after Chancellor Merz relaxed the constitutional limit on debt, allowing the country to raise up to €1 trillion in credit resources to finance defense and infrastructure development over the next decade. These measures aim to strengthen Germany’s security position and make it a leader among European countries in military expenditure.