Germany's Future Military Spending and European Coordination

By Andreas Rinke and Thomas Escritt

BERLIN (Reuters) – Germany can handle future military spending increases without a special funding instrument, but must improve coordination with European allies, according to Friedrich Merz, the frontrunner in Germany's chancellorship race.

Merz, leader of the opposition conservatives, stated that a special fund, similar to the €100 billion set aside by Chancellor Olaf Scholz's government, is unnecessary after a detailed budget review upon taking office.

Following Russia's invasion of Ukraine in 2022, Germany was pressured to maintain defense spending above the NATO target of 2% of GDP and improve its defense capabilities.

> "Right now I don't see any need to discuss a new special fund or extra debts," Merz told Reuters. "We need to review the books and then set new priorities."

In 2025, German aid to Ukraine will decrease to €4 billion from around €8 billion in 2024.

With an early election approaching in ten weeks, conservatives lead by at least 10 points in polling against Scholz's Social Democrats, prompting Merz to refine his foreign policy approach.

Scholz's tenure faced challenges, particularly managing crises after Russia's invasion, and dealing with disagreements within a coalition on funding military spending.

Merz emphasizes the need for collaborative military spending among European allies and proposes a European contact group to support Ukraine, especially with the potential return of U.S. President-elect Donald Trump, who may alter the U.S. approach toward Ukraine.

During a recent visit to Kyiv and Warsaw, Merz advocated for including front-line states like Poland, as well as Britain and France, in discussions. He mentioned that Italy and Spain could contribute as well but favors a core group for streamlined efforts.

> "The important thing is to have a group of states that form a common opinion on how to approach the issue of Ukraine, especially in view of the coming change of government in the United States," he said.

Merz believes the contact group could consist of experts who could assess the situation and determine needed actions, stressing that individual states cannot manage this conflict in isolation.

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