Germany Doubles Defense Budget, Commits to 3.5% GDP Spending by 2035
Germany is undergoing a significant strategic transformation in its defense policy, moving from a historically cautious approach to a more robust military commitment. Chancellor Friedrich Merz announced on July 3 that Germany will double its defense budget within four years. This commitment is reflected in the projected increase of Berlin’s defense spending as a percentage of GDP, rising from 1.43% in 2021 to an estimated 2.69% for 2026. The German government has also pledged to increase the defense budget to €162 billion ($189 billion) by 2029, aiming to exceed 3% of GDP. This trajectory is set to achieve the minimum 3.5% of GDP on core defense requirements by 2035, a commitment formalized by NATO allies in the 2025 NATO Hague Summit Declaration. This shift was spurred by Russia's aggression in Ukraine and demands from the Trump administration for increased defense contributions from NATO members. In 2022, Germany established a €100 billion (approximately $113 billion) special defense fund, accelerating p...