Germany has signaled it may increase defense spending to 5% of its GDP, aligning with a demand from U.S. President Donald Trump, who has long urged NATO allies to bolster military expenditures. Initially, Trump called for members to spend 2% of GDP on defense, but he has since pushed for a higher target of 5%.
German Foreign Minister Johann Wadephul confirmed the shift during talks with U.S. Secretary of State Marco Rubio in Antalya, Turkey, where NATO foreign ministers gathered informally. “We are following [President Trump’s] call,” Wadephul stated, marking the first time Germany openly supported the 5% proposal.
However, the idea faces domestic resistance. Former Chancellor Olaf Scholz of the Social Democrats (SPD) dismissed the figure as unrealistic earlier this year, warning that 5% would exceed €200 billion annually—nearly half of Germany’s federal budget. “That would only be possible with massive tax increases or severe cuts to other priorities,” Scholz argued.
New Chancellor Friedrich Merz, while cautious on strict GDP targets, has emphasized strengthening Germany’s armed forces, the Bundeswehr. In his first government statement, Merz vowed to build “the conventionally strongest army in Europe.”
Yet challenges remain. The Bundeswehr faces personnel shortages, but Defense Minister Boris Pistorius (SPD) confirmed there are no plans to reintroduce compulsory military service. Instead, Germany will maintain a volunteer-based system modeled after Sweden’s approach. Reinstating conscription would require a two-thirds majority in the Bundestag—a threshold the government lacks, particularly with the left-wing Die Linke party firmly opposed.
While some allies view 5% as unrealistic, NATO Secretary General Mark Rutte has floated a compromise: 3.5% for direct military spending and an additional 1.5% for defense-related infrastructure. “Even bridges must be built to withstand tanks,” Rutte remarked in Antalya.
Within Germany, Markus Söder, leader of the Christian Social Union (CSU), endorsed Rutte’s proposal, calling 3.5% a “core minimum.” Meanwhile, divisions persist within the ruling coalition. While SPD finance expert Andreas Schwarz called Rutte’s suggestion “a step in the right direction,” others, like SPD veteran Ralf Stegner, rejected Trump’s demands as excessive.
As debates continue, Chancellor Merz has framed increased defense investment as a geopolitical necessity. “Our allies expect—and demand—greater responsibility from Europe’s largest economy,” he told lawmakers.
U.S. Secretary of State Rubio acknowledged the financial strain of higher targets but stressed NATO’s collective strength. “The alliance is only as strong as its weakest link,” he said. “We intend to have no weak links.”