Can 5% of Germany target NATO defense costs?

Tax increase and flying debt can be a new reality of Germany, because NATO allies are soon faced with the target of higher defensive costs.

In 2024, the country accounted for about 90 billion euros ($ 104 billion), 90 billion euros ($ 104 billion), about 2% of the proximity to the defense estimate. Although this cost corresponds to the current NATO target, it is short of 5% of the military expenditure of the Military Union It was reported to have something agreed.

According to the new rules, members of the GDP are expected to provide 1.5% of GDP classical defense costs, infrastructure and cyber security.

It has been a booster in the United States to spend more defenses He argued highSome NATO members said they would fight to make more funds to make more money on such expenses and others supported others. Although in Germany He said that was supported US President Donald Trump’s proposal, questions, 5% of the target questions about whether the target is really possible for Europe’s largest economy.

2% Jumping from GDP to 5%, Germany spends ten billions of euros in the protection every year, Chancellor Friedrich Merz lean Earlier this year, 1% of the country’s GDP will represent about 45 billion euros.

According to the CNBC, these additional expenses are likely to be funded by the CNBC, according to CNBC, according to the CNBC, Hubertus Bardt, the Director of the Economic Institute Iw Koeln.

“Nevertheless, such an increase will lead to the congressional distribution conflicts in the country’s annual budget,” he said, according to CNBC translation. He added that at the beginning of the loans, the Berlin’s leadership was likely to discuss the execution of financing cuts along with tax growth.

An researcher Emilie Hoeslinger at the Institute of Ifo, pointed to Germany Last financial U-turn. The new rules of Berlin are free from debt brakes, which can lend and dictate the size of the government’s most debt, the government’s most debt, which is higher than a particular threshold. Germany also approved the 500 billion euro Special Infrastructure Fund.

“Thanks to additional debt, the financing of defense spending gives the government to the government as soon as possible,” he said. “But the growing need for the debt will lead to medium-term average interest expenses that will draw in the federal budget,” he said.

Bardt reflected these concerns.

“Full financing through loans is almost impossible,” he said.

Another potential issue mentioned in the discussions around the higher defensive costs of experts is the financial rules of the European Union, the financial rules that can get more borrowed from the block members.

Rules, but in exceptional cases can be temporarily suspended and there are some countries in Germany required Provide an answer to such a defense and security grounds.