Published January 13,2025
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German Chancellor Olaf Scholz on Monday dismissed incoming US president Donald Trump’s calls for that Germany and different NATO allies spend a minimum of 5% of gross home product (GDP) on defence.
“Five percent would be over €200 billion ($204 billion) per year, the federal budget is not even €500 billion,” Scholz mentioned at an election marketing campaign occasion within the central German metropolis of Bielefeld. “That would only be possible with massive tax increases or massive cuts to many things that are important to us.”
However, Scholz promised that Germany would adhere to the present NATO goal of spending a minimum of 2% of GDP. Germany reached that mark final yr for the primary time because the finish of the Cold War.
“I guarantee that we will continue to spend 2% of our economic output on defence,” Scholz mentioned. “Anyone who says that’s not the way to go must also say where the money will come from.”
Germany’s defence spending was boosted by a €100 billion particular fund created within the wake of Russia’s February 2022 full-scale invasion of Ukraine, which put new concentrate on the poor state of some European militaries.
But it stays unclear how Germany will keep that degree of spending long-term, given the tight funds state of affairs and strict guidelines in opposition to deficit spending anchored within the nation’s structure.
NATO set itself the two% goal in 2014.
Source: www.anews.com.tr