In 2027, the government plans a total expenditure of €555.4 billion, with €109.7 billion, or about 20 percent, allocated to defense spending. This share is expected to increase, reaching €183.7 billion for defense in 2030 from a projected total of €635.4 billion.
The 2027 spending plan was released before the upcoming NATO summit in Ankara, where European leaders aim to persuade U.S. President Donald Trump of their dedication to enhancing military spending and assuming more responsibility for Europe’s defense.
“The United States spends more on NATO than any other country, by far, to protect them, without benefiting from it,” Trump stated in a Truth Social post on Thursday, criticizing several European nations, including Germany, for their defense expenditure, calling it “Ridiculous!”
Merz responded to Trump the next day.
“Germany is doubling its defense budget within four years,” Merz stated in Berlin. “This is our greatest effort to boost our defense capabilities. We have nothing to hide.”
Germany relaxed its constitutional debt brake in 2025, which limits the federal deficit to 0.35 percent of GDP, by exempting a significant portion of defense spending to permit a substantial increase in military expenditure. However, it’s uncertain if German public support for increased spending will persist in the future, as Klingbeil may need to find budget cuts elsewhere.
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