Huginn and Muninn Intelligence

Germany to hit NATO budget goal for 1st time since Cold War

Information

According to a Defense Ministry spokesman and NATO forecast, Germany will meet NATO’s defence spending target of 2% of its gross domestic product (GDP) for the first time since the early 1990s. German news agency DPA reported that the German government has allocated $73.41 billion (€68.58 billion) for defence spending in the current year, which represents 2.01% of Germany’s GDP. In 2023, Germany had only spent 1.57% of GDP on defence, well below the 2% target. However, this Monday, German Chancellor Olaf Scholz pledged to meet the 2% spending commitment during his visit to Rheinmetall’s future arms factory site.

NATO Secretary-General Jens Stoltenberg commended the 31-nation alliance for an “unprecedented” 11% increase in defence spending. He also announced that Germany has hit the 2% spending target. During a pre-ministerial press conference in Brussels, Stoltenberg stated that 18 allies are expected to spend 2% of their GDP on defence this year. This record number represents a six-fold increase from 2014 when only three allies met the target. NATO’s European states will invest a total of $380 billion in defence this year. Prior NATO estimates predict that by 2023, 11 allies will have achieved the 2% target. These allies include Poland, the US, Greece, Estonia, Lithuania, Finland, Romania, Hungary, Latvia, Britain, and Slovakia.

Source: IISS, AFP, AP

Assessment

Did Trump’s threats work? Or has Olaf Scholz followed the advice of NATO generals? Regardless of the cause, this is a positive development for European security. As previously stated, one of the most effective ways to ensure European security is likely through a military build-up from NATO. Significant investment by NATO will possibly deter any further aggression from Russia while also supporting Ukraine to a possible victory. Additionally, this show of support could deter a military conflict with China as providing a collected front will show that the West could support Taiwan in a similar way.

Like, share, and subscribe!

Leave a Comment

Your email address will not be published. Required fields are marked *