Germany Plans To Double Its Defense Spending Within Five Years

With plans to more than double its military spending by 2029, Germany has unveiled a bold new defense spending proposal. A significant change in the nation’s defense strategy will result from the anticipated investment, which will total €649 billion ($761 billion) over the following five years. Following Russia’s invasion of Ukraine, which altered the security landscape in Europe and forced Germany to reevaluate its military approach, this decision was made.

By 2029, the spending plan seeks to reach NATO’s recently increased defense target of 3.5% of Germany’s GDP. Germany has already set aside €86 billion ($101 billion) for its military this year, or 2.4% of GDP. With contributions to Ukraine included, this amount is expected to increase dramatically over the next few years, reaching an estimated €162 billion ($190 billion) by 2029.

The annual €9 billion ($10.6 billion) allotted for military assistance to Ukraine is a significant portion of the budget. Germany has emerged as one of Kyiv’s most important allies, particularly in light of possible US withdrawal from the war. Germany’s military assistance is still essential given Russia’s ongoing aggression.

Germany intends to borrow €400 billion ($469 billion) over the next five years to pay for this significant defense overhaul. A recent constitutional amendment that temporarily loosens Germany’s stringent debt regulations and permits greater investments in infrastructure and the military makes this borrowing possible. Net government borrowing will increase from €33.3 billion in 2024 to €81.8 billion in 2025.

There is internal conflict in Germany in spite of these ambitious plans. The Green party has accused the government of money manipulation, while some left-leaning Social Democrats have criticized the percentage-based targets for military spending. However, Chancellor Friedrich Merz defends the action, saying that the increase is required because Russia’s actions directly threaten European security, not to appease the United States. Making the Bundeswehr the most powerful conventional military force in Europe is the aim.