The German government went back on its commitment to increase defense spending to 2% of GDP. GDP per year, that is NATO’s goal.
According to Reuters, citing a source in the German government, the relevant provision in the bill on financing the budget approved by Chancellor Olaf Scholz’s cabinet on Wednesday has been urgently removed.
This change means that Germany will aim to meet the NATO target of increasing defense spending to 2 percent of GDP. GDP in five years.
A government spokesman in Berlin declined to comment on details of the bill.
Germans criticized by Allies
As Reuters recalls, NATO allies have historically strongly criticized Germany for not allocating 2 percent of GDP. GDP per year for defense.
German Chancellor Olaf Scholz said in June last year that Germany would soon have the largest conventional army among European NATO members. After the Russian invasion of Ukraine, Scholz announced the award of 100 billion euros to the army, heralding major changes in German security policy.
The money would be used over several years to increase Germany’s regular defense budget by about €50 billion and enable the achievement of NATO’s target of 2% of GDP annual allocation. defense GDP.
It is unclear whether Berlin will keep military spending above that threshold after the special fund to support the Bundeswehr runs out.
Poland leads NATO in terms of defense spending
In 2022, Poland spent 2.4% of its GDP on defense. GDP. Of all NATO countries, only the United States and Greece spent more.
The 2023 budget approved by the Sejm foresees defense spending of PLN 97.4 billion, or almost 4% of GDP. GDP.
The government’s goal is to increase the size of the Polish armed forces to 300,000. (250,000 professional soldiers and 50,000 Territorial Defense Forces soldiers).
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
