Headlines
Chancellor hopeful says Germany should focus on existing NATO spending target
Published by Global Banking & Finance Review®
Posted on January 21, 2025
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on January 21, 2025
1 min readLast updated: January 27, 2026
Germany's chancellor candidate stresses meeting NATO's 2% GDP defense spending target, highlighting a significant funding gap.
By Ludwig Burger
FRANKFURT (Reuters) - The leader of Germany's conservative CDU, the party's candidate to run for chancellor, said on Tuesday that the nation should focus on efforts to reach existing NATO defence spending targets before discussing any further increases.
"For the next three to four years we will have to focus on reaching at least 2%, where we currently see a funding gap of 30 to 40 billion (euros) per year and that’s what we need to work hard on," Friedrich Merz told radio station DLF.
Germany, which is to hold general elections on Feb. 23, met NATO's target to spend 2% of its gross domestic product on defence in 2024, but only thanks to a 100 billion euro ($104 billion) special fund that will run out in 2028.
Incoming U.S. President Donald Trump has called for a new NATO spending target of as much as 5% of GDP.
($1 = 0.9647 euros)
(Reporting by Ludwig Burger, editing by Kirsti Knolle and Friederike Heine)
The main topic is Germany's focus on meeting NATO's defense spending target of 2% GDP before considering any increases.
Friedrich Merz emphasizes reaching the current NATO spending target and addressing the funding gap.
Germany met the 2024 target with a special 100 billion euro fund, which will expire in 2028.
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