- Joined
- Mar 3, 2021
Under this plan, the core defense budget is set at €105.8 billion. This will be supplemented by €27.5 billion mobilized into a special defense fund—a result of abolishing the "debt brake" mechanism—plus €11 billion allocated for direct defense budgetary assistance to Ukraine.
Additionally, €58.2 billion has been earmarked for indirect defense spending focused on the modernization of logistics and infrastructure (ports, airfields, highways, and bridges). Consequently, it is fair to say that in 2027, Germany will spend over €200 billion on defense and defense-related matters.
Crucially, this is not a one-time surge. Defense spending is projected to leap forward annually, bolstered by the removal of the debt brake and the potential to mobilize €500 billion in loans for the defense sector. This will significantly increase the net defense budget, which could potentially reach €300–350 billion per year within the next 3 to 5 years.
