Cranking Up Defense Spending: Germany to Boost Defense Budget by 3.5% GDP by 2029
Anticipated growth for military spending: Projected increase in war budget to €153 billion by 2029. - Increased Defence Budget: Anticipated Defence Expenditure to Reach €153 Billion by 2029
It's all systems go for Germany as they plan to ramp up their defense spending, with targets set to reach a whopping 3.5% of their GDP by 2029. This strategic move comes as part of a broader effort to toe NATO's line and tackle recent geopolitical challenges head-on.
Currently, Germany's defense spending clocks in at around 2% of their GDP. But things are about to change, with an ambition to raise the bar significantly. With a projected flat GDP of roughly USD 4 trillion in 2025, this means an increase from around USD 76 billion (1.9% of GDP) to a staggering USD 120 billion (3.0% of GDP) or higher in the coming years.[1][3]
Over the 2025-2029 period, German government borrowing will surge by an estimated 500 billion euros, part of which will be channeled into infrastructure and defense investments.[1][3] This’ll put some serious cash into bolstering defense, encompassing a wide range of security needs, including – but not limited to – support for Ukraine and expenses related to intelligence services.[1]
Germany's decision reflects the growing urgency for stronger defense commitments, particularly within NATO. The organization's guidelines suggest member countries spend at least 2% of their GDP on defense. However, former U.S. President Donald Trump pushed for a more ambitious target of 5%, a goal that remains unofficial but has stirred a wave of pressure for greater investment.[1]
Germany’s 3.5% target by 2029 represents a significant hike from current levels, placing Germany more in sync with NATO targets, though still short of the 5% figure mentioned.[1] As the world teeters on the edge of uncertain times, Germany's unwavering commitment to defense spending highlights their determination to safeguard their security and freedom, even in the face of challenges not seen since World War II.[1]
- Defense Budget
- Defense Spending
- Germany
- NATO
- Ukraine
- Intelligence Services
- The escalation in Germany's defense spending, aimed at reaching 3.5% of their GDP by 2029, aligns the country more closely with NATO's defense guidelines.
- As part of its efforts to bolster defense, Germany will be investing a substantial portion of the estimated 500 billion euros in government borrowing over the 2025-2029 period into infrastructure and defense.
- Beyond supporting Ukraine and expenses related to intelligence services, the increase in defense spending is expected to address a wide range of security needs in Germany.
