Germany plans to boost its defense budget to at least 3% of its economic output, regardless of the winner of the upcoming election. This commitment follows pressure from NATO Secretary General Mark Rutte and US President Donald Trump for increased defense spending. While Germany has already redirected funds towards military modernization after Russia's invasion of Ukraine, the source of this new funding remains unclear, as the country faces constitutional limits on borrowing.
Germany aims to further ramp up defense spending and commit to investing at least 3 percent of economic output on its military regardless of who wins this month’s election, according to the chairman of parliament’s defense committee.
Faber said that Rutte “was pretty clear” during a visit to his office “that we are more looking for 3 percent, maybe 3.5 percent—so I think 3 percent will be the new floor.”US President Donald Trump has urged Nato countries to go even further and spend the equivalent of 5 percent of gross domestic product on defense, raising pressure on allies to more than double the current goal of 2 percent. No member of the alliance is currently spending 5 percent, including the US.
That money has either been spent or allocated, nudging Germany’s defense spending above 2 percent last year for the first time, and it’s unclear how Germany will pay for the new increase that Faber envisages, given strict limits on government borrowing enshrined in the constitution. Asked if Germany could create a new off-budget fund, Faber, whose party is in danger of missing the 5 percent threshold for getting into parliament, ruled it out as “unconstitutional.”
DEFENSE SPENDING GERMANY NATO ELECTION RUSSIA
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