Germany Reaffirms Commitment to NATO’s Defense Spending Goals: Report by Reuters

Germany Reaffirms Commitment to NATO Defense Spending Goals

BERLIN (Reuters) – The German government has assured NATO that it will maintain its plans to increase military spending to 1.5 percent of gross domestic product (GDP) by 2024, despite facing a decline in tax revenues, according to a report from Der Spiegel.

Concerns about these plans emerged after a Finance Ministry document, obtained by Reuters, indicated that the government’s tax revenues are expected to grow less than previously anticipated due to a slowing economy.

The document revealed that the ministry has allocated only 7.3 billion euros for additional defense and development aid through 2022, a figure deemed inadequate for Germany to meet the 1.5 percent target, which already falls short of NATO’s broader goal of 2 percent of GDP.

Germany faces pressure from the United States and other NATO allies to elevate military spending to 2 percent of GDP, in line with a commitment made by NATO members in 2014.

According to Der Spiegel, Germany’s representative to NATO presented a three-page document to NATO Secretary General Jens Stoltenberg, which includes a binding commitment to increase spending to 1.5 percent of GDP by 2024 and to continue rising thereafter. However, the document did not provide specific figures or a timeline regarding how Berlin intends to meet these higher spending requirements. It was noted that the German budget would need to grow from 43.2 billion euros to over 60 billion euros to achieve the targeted percentage.

Military spending is a contentious issue within Germany’s ruling coalition, with Chancellor Angela Merkel’s conservative party advocating for more rapid increases in defense budgets, while the Social Democratic coalition partners are more cautious.

This issue also remains a significant point of tension in Germany’s relationship with the United States. In response to the ministry document, Richard Grenell, the U.S. Ambassador to Germany, emphasized the importance of Germany adhering to its NATO commitments. He stated, "NATO members are expected to reach their 2 percent commitment by 2024. Now is not the time to take NATO for granted or undermine it in any way."