Germany's front-runner for chancellor won't commit to new NATO spending target

investing.com 08/01/2025 - 10:09 AM

German Opposition Leader Friedrich Merz on Defence Spending

BERLIN (Reuters) – German opposition leader Friedrich Merz, a candidate for chancellor in next month’s election, stated that Germany would increase defense spending but would not commit to the NATO target advocated by U.S. President-elect Donald Trump.

“We first really have to reach the 2% lower limit in Germany. We are not there yet,” Merz said in an interview with Bayerischer Rundfunk, responding to Trump’s proposal for NATO members to allocate 5% of their gross domestic product to defense.

Merz stated, “The 2, 3 or 5% (targets) are basically irrelevant; the decisive factor is that we do what is necessary to defend ourselves.” He leads the opposition Christian Democrats and is favored to succeed Olaf Scholz.

Trump has repeatedly criticized NATO members for not contributing adequately. During his campaign, he suggested increasing NATO defense contributions. According to NATO, 23 out of its 32 members are expected to meet the 2% GDP spending target by 2024.

Markus Soeder, leader of the Christian Democrats’ Bavarian sister party, the Christian Social Union (CSU), expressed that military spending should significantly rise to “well over 3%.”

Germany currently meets the NATO 2% target through a special fund, raising concerns about sustainability post-2028 when the fund runs out.

With pressure from Trump and a more assertive Russia, defense spending has become a central issue in the upcoming parliamentary elections in Germany, slated for February 23, shortly after Trump assumes office.

Merz asserted that Germany can handle future defense spending increases without relying on a special fund. Meanwhile, German Economy Minister Robert Habeck, the Greens’ chancellor candidate, proposed a target of 3.5%, suggesting it could only be achieved through loans.

Dirk Wiese, deputy leader of the parliamentary group of Scholz’s Social Democrats, criticized Trump’s demand as “complete madness” and did not support Habeck’s proposal, echoing Scholz’s view that it was “somewhat half-baked.”




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