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Tuesday, Jun 24, 2025

Germany to raise defence spending to 3.5% of GDP by 2029

Germany to raise defence spending to 3.5% of GDP by 2029

Ambitious program funded via special borrowing plan
Germany will increase defence spending from 2% to 3.5% of GDP by 2029 as part of a nearly €400 billion borrowing package aimed at reviving economic growth and strengthening military posture.

The government plans to boost annual expenditure from €95 billion in 2025 to €162 billion by 2029, funded through a €500 billion infrastructure fund and eased debt-brake rules, with the draft 2025 budget now awaiting cabinet approval ahead of the NATO summit.
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