Germany is set to dramatically increase its defense spending, with plans to allocate an unprecedented €153 billion to its military by 2029. This ambitious target would see Germany’s defense expenditure reach 3.5% of its gross domestic product, marking a profound shift in the nation’s security policy amidst a volatile geopolitical landscape.
The proposed increase comes ahead of a crucial NATO summit in The Hague, where member states are expected to reaffirm and potentially raise their defense spending commitments. Germany’s move signals its strong intent to meet and exceed alliance targets, firmly embracing its enhanced role in European and transatlantic security. This decision reflects the “Zeitenwende,” or “turning point,” in German foreign and defense policy initiated in response to recent global events.
To facilitate this massive financial undertaking, Germany is preparing to temporarily suspend its constitutional “debt brake,” which ordinarily limits new borrowing. This exceptional measure will provide the necessary fiscal flexibility for the defense investments. Furthermore, Berlin plans to lobby the European Union to classify defense expenditures as “exceptional expenses,” seeking to exempt them from standard budgetary rules.
Beyond its domestic defense buildup, Germany is also committing substantial financial aid to Ukraine. The plan includes earmarking €8.3 billion for Kyiv in 2025, with this annual commitment slated to rise to €8.5 billion from 2026 onwards. This dual focus on rearming its own forces and providing sustained support to Ukraine underscores Germany’s comprehensive approach to safeguarding European security.
The significant increase in defense spending by Europe’s largest economy is poised to have far-reaching implications, not only for the Bundeswehr’s modernization but also for the broader European defense industry. It signals a robust commitment to collective security, reshaping Germany’s strategic posture and reinforcing NATO’s eastern flank in an era defined by renewed geopolitical challenges.