German defense budget to reach $86bn by 2028
Germany will reach NATO's 2% defense spending target by 2028, growing its annual military budget to €80 billion ($86.6 billion) from the current €52 billion, Chancellor Olaf Scholz said on Friday.
"This is about a strong defense, strong armed forces that provide protection from the aggressive rulers of our time. That is why we will fully meet the NATO target of 2% every year. From 2028, meaning after the special fund will be fully spent, the regular defense budget will be €80 billion to ensure that the 2% target will continue to be met," Scholz told a news briefing.
The special fund was set up at Scholz's initiative following the start of the Russian military operation in Ukraine. The one-off initiative unlocked €100 billion worth of investments for the national defense forces.
The country's draft budget for 2025 is expected to reach €481 billion, including €57 billion worth of investments, Finance Minister Christian Lindner said after the three-way governing coalition announced a provisional budget deal.
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