US announces Germany's inability to increase defence spending

Germany will be unable to increase its base defence budget to two per cent of GDP by 2028, as required by NATO.

Currently, Germany's base defence budget stands at 1.3 per cent of GDP, Caliber.Az reports, citing foreign media.

Overall military expenditures only reach the two per cent threshold due to contributions from an off-budget investment fund. However, this fund is expected to be depleted by 2028. To maintain the current level of total defence spending, Berlin would need to increase its base defence budget by 60 per cent from its current amount.

However, experts assess the likelihood of Berlin achieving this target as low. NATO defence spending remains uneven. Poland and Estonia allocate 4.1 per cent and 3.4 per cent of their GDP, respectively, to defence. In contrast, Portugal spends 1.6 per cent, while Spain allocates only 1.3 per cent.

Previously, Germany’s Federal Minister for Economic Affairs and Climate Action  Robert Habeck acknowledged the unsatisfactory economic performance of the country. He noted that the stagnation is proving more persistent than research institutes had anticipated.   Earlier, Germany assessed the impact of anti-Russian sanctions on the German economy.