Germany Unveils Historic €104 Billion Defence Budget, Becomes Europe’s Top Military Power
Germany will become Europe’s largest military power since World War II, with a historic defence budget exceeding €100 billion for the first time. Chancellor Olaf Scholz announced the move, directly linking it to the Russia-Ukraine war and the potential return of Donald Trump to the US presidency.
Key Takeaways
- Germany’s 2025 defence budget is set at €104 billion (1.2% of GDP).
- A separate €100 billion special fund will push total NATO spending to the 2% of GDP target.
- The funds will modernise the Bundeswehr with new jets, tanks, and artillery.
- Scholz positioned the move as a response to Russian aggression and a signal of reduced reliance on the US.
Meeting the NATO Target
Chancellor Scholz stated Germany will meet the NATO spending goal of 2% of GDP “for the first in decades.” The core budget of €104 billion is supplemented by a special €100 billion fund created after Russia’s 2022 invasion of Ukraine. This fund is dedicated to modernising the German armed forces.
“We are the second largest supplier of military aid to Ukraine. And we will continue to provide massive support in the future,” Scholz affirmed.
A “Turning Point” for European Security
Scholz framed the decision as a necessary response to a changed security landscape. “Russia’s war of aggression against Ukraine has brought a turning point. It threatens our entire European security architecture,” he said.
Veiled Message to Trump and NATO
The announcement carried a clear message for Donald Trump, who has criticised European NATO members for underspending. “We are doing this for our own security… And we are doing this because we cannot rely on others to do it for us,” Scholz emphasised.
Trump has previously suggested he might not defend NATO allies who fail to meet spending commitments and even hinted he would encourage Russian aggression against them.
Germany’s New Leadership Role
Facing past criticism for slow military aid to Ukraine and a weakened Bundeswehr, Scholz pledged a new era. “Germany will live up to its responsibility as the largest economy in Europe,” he declared, vowing that Germany would ensure Europe can defend itself.
