Can Germany bear the goal of defense spending by 5 %?

The tax increases and high debts may be the new reality of Germany, as NATO allies are to face a higher target for defensive spending.

In 2024, the country spent about 2 % of its GDP (gross domestic product) on the defense, as it reached more than 90 billion euros (104 billion dollars), according to NATO. appreciation. Although this spending is in line with the current NATO goal, it is not less than 5 % of the targets of spending in the military alliance now It is said agreed.

Under the new rules, members are expected to allocate 3.5 % of GDP for classic defensive spending and 1.5 % on broader related matters such as infrastructure and cybersecurity.

The US -led payment was for more defensive spending Very disputedWith some NATO members that they will struggle to set more money for such expenses, while others were supportive. While Germany has He said he is supported The proposal of US President Donald Trump is wondering whether the target of 5 % is really possible for the largest economy in Europe.

Jumping from GDP expenses by 2 % to 5 % will witness that Germany spends tens of billions of euros on defense every year, with Counselor Friedrich Mirz Saying Earlier this year, 1 % of the country’s gross domestic product will represent about 45 billion euros.

These additional expenses are likely to be funded by loans.

He said, according to the translation of CNBC: “Nevertheless, this increase will lead to noticeable conflicts in the distribution of the country’s annual budget,” he said. He added that in addition to loans, the Berlin Administration is likely to have to hold discussions about the implementation of financing discounts elsewhere – as well as tax increases.

Meanwhile, Emily Halaler, an IFO researcher, referred to Germany Recently, the financial circulation. The new Berlin rules mean that the defense expenses are above a specific threshold exempt from the so -called debt brake, which limits the amount of debts that the government can take and dictate the size of the structural budget deficit of the federal government. Germany also agreed to a special infrastructure fund 500 billion euros.

“Financing defense expenditures through additional debts gives the government more in the short term,” she said, according to the translation of CNBC. “But the increasing need for debts will lead to high interest costs in the medium term, which will affect the federal budget,” she said.

Bart repeated these concerns.

“Full financing through loans is almost impossible in the long run,” he said.

Another possible issue made by experts in discussions about high defense spending is the financial rules of the European Union, which can hinder the mass members to more debts.

However, the bases can be suspended temporarily under exceptional circumstances, and some countries including Germany required Such a suspension of the causes of defense and security.