Germany meets NATO's defense spending target for the first time.

For the first time since 1992, the German government has earmarked $73.41 billion for defense spending this year, marking 2.01% of its GDP. This development comes in the wake of statements made by former U.S. President Donald Trump concerning NATO, leading to intensified calls within Germany and the European Union for a significant bolstering of military capabilities and enhancement of deterrence measures.
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Defence spending – Allies Annual National Reports as at December 2023 (Picture source: OTAN )

During a campaign event in South Carolina, Trump claimed he had warned NATO allies during his term that the U.S. would not defend any nation attacked by Russia if they had not fulfilled their financial obligations. He went so far as to say, "In fact, I would encourage (Russia) to do whatever the hell they want," sparking controversy with his candid remarks.

In a statement on February 14, 2024, NATO Secretary General Jens Stoltenberg highlighted that in 2024, NATO allies in Europe are projected to invest a combined total of $380 billion in defense, achieving the 2% of their combined GDP target for the first time. These comments have led to increased pressure on Chancellor Olaf Scholz from German politicians to ramp up defense expenditure, despite the establishment of a €100 billion ($108 billion) special fund announced in February 2022.

Despite NATO's recent figures, the debate over defense spending is not new. Experts broadly agree that the German military, like those in many European countries, requires more funding. Parliamentary Defense Commissioner Eva Högl reported in March last year that the Bundeswehr needs €300 billion to meet its needs, especially as its supplies have been depleted to support Ukraine.

However, Germany maintains that it is meeting its financial commitments as demanded by Trump, although his characterization of NATO's financial arrangements is misleading. While NATO does receive direct contributions, it is not a membership club with dues. In 2014, NATO defense ministers pledged to allocate a minimum of 2% of their GDP to defense, a target not met by many members.

The challenge, however, is not just the size of the budget but also its allocation. The chancellery has revealed that €70 billion of the special fund is tied up in contracts for new military equipment, notably F-35 fighter jets and Chinook transport helicopters.

Amidst these developments, German Defense Minister Boris Pistorius has stated that NATO must prepare for the potential of a Russian attack on a member state within the next five to eight years. Consequently, and particularly in light of the possibility of another Trump presidency, some politicians argue that the European Union must establish its own nuclear deterrent. Yet, there is a lack of consensus among EU member states on this issue. France, the only EU member with nuclear weapons, appears uninterested in sharing its arsenal. Moreover, the EU lacks a unified defense department that could designate an individual responsible for launching nuclear weapons, complicating the debate on a European nuclear deterrent.

Defense News February 2024