Germany Plans to Significantly Increase Defense Spending

According to a report by Reference News on May 1, Reuters reported on April 28 that sources told Reuters reporters on the 28th that the German government is drafting the 2027 budget proposal, which includes total borrowing of 196.5 billion euros, aimed at strengthening infrastructure and defense construction. In contrast, the previous government’s total borrowing for 2024 was only 50.5 billion euros.

Sources said that the budget also reflects a strong commitment to defense spending, with defense expenditures in the core budget increasing from 82.7 billion euros in 2026 to 105.8 billion euros in 2027.

Including the special defense fund and the Ukraine fund, Germany's total defense spending plan for 2027 is set to reach 144.9 billion euros. Sources indicated that the plan is to further increase the core budget to 179.9 billion euros by 2030.

Sources stated that with other government defense expenditures included, Germany's defense spending in 2027 will account for 3.1% of Gross Domestic Product (GDP), and is expected to rise to 3.7% by 2030. NATO leaders agreed at a summit last year to increase defense and related investment spending to 5% of GDP by 2035.

Germany will continue to support Ukraine, providing 11.6 billion euros in 2027, and 8.5 billion euros annually from 2028 to 2030. Sources noted that the 2027 budget proposal is part of a medium-term financial framework extending to 2029, representing a 3.6% increase from the previous year.

This surge in spending is supported by the 500 billion euro infrastructure fund approved last year and an exemption policy that allows defense spending to be unaffected by debt rules.

The new borrowing in the core budget is expected to increase to 110.8 billion euros, in addition to 58.2 billion euros in extra borrowing through the infrastructure fund, and 27.5 billion euros borrowed through the special defense fund approved by former Chancellor Scholz after the outbreak of the Russia-Ukraine conflict.

The budget proposal will be submitted on the 29th, with plans for cabinet approval in July, followed by parliamentary budget discussions starting in September, with final approval expected to be completed by the end of the year.

According to a report by the German newspaper Welt on April 27, the Stockholm International Peace Research Institute (SIPRI) publishes a detailed global military expenditure analysis report every year. Karim Hagag has served as the director of the institute since 2025.

A Welt reporter asked: Mr. Hagag, is Germany really experiencing a turning point?

Karim Hagag replied: Last year, Germany's defense spending increased by 24%. Currently, Germany's military expenditure has reached 114 billion dollars. A decade ago, Germany ranked ninth in global military spending, and now it has risen to fourth—only behind the United States, China, and Russia. However, at the same time, most NATO member countries in Europe are also significantly increasing their defense budgets.

Question: After the Cold War, Western democratic countries relied on the United States for protection and neglected their own defense construction—including Germany. Now that Germany and other Western countries are actively strengthening their defense, isn’t that good news?

Answer: On one hand, it is commendable that these countries are finally taking remedial measures after decades of underinvestment. But at the same time, we must consider the larger context. This increase is occurring during a time of escalating inter-state conflicts. Additionally, some European countries are primarily procuring offensive systems, such as long-range precision-guided weapons, which further blurs the line between conventional and nuclear weapons, undermining stability.

Question: Many political parties in Europe, such as Germany's Left Party or Alternative for Germany, have criticized the increase in military spending. They advocate for more funding for social security and seek reconciliation with Russia.

Answer: This mainly indicates the deep polarization of this debate. People often adopt a simplistic either-or rhetoric: one side demands a significant increase in security spending—even at the expense of other areas; the other side bets on diplomacy, believing there is no need to increase defense spending. Both views have flaws. Security must be considered from a holistic perspective. In turbulent times, it is understandable for countries to strengthen their defense capabilities. However, believing that security can be guaranteed solely through military means is a misunderstanding. Looking back at NATO during the Cold War, we can see that security requires two pillars—military strength and reliability, the latter built on cooperative relationships with adversaries. We should return to this balance.

(Translated by Lu Di and Zhong Sirui)