German Chancellor Olaf Scholz has firmly rejected the call from US President-elect Donald Trump for European NATO members to raise their defence spending to 5% of their GDP. Speaking during his election campaign in Bielefeld, Scholz made it clear that he would maintain Germany’s commitment to NATO’s current target of 2%, citing the substantial financial burden that a 5% target would impose on the country.

Scholz’s Stance on Defence Spending

Trump’s criticism of Europe’s defence contributions sparked controversy, with the US president-elect urging NATO allies to significantly boost their military budgets. However, Scholz countered by stressing that a 5% increase would equate to over €200 billion annually—far more than Germany’s total federal budget, which is less than €500 billion.

“The 5% target would require massive tax hikes or cuts to essential public services,” Scholz stated. He assured voters that Germany would stick to its pledge of spending 2% of its GDP on defence, emphasizing the need for practicality in defence policy.

German Election Campaign Focuses on Defence

As Germany’s election campaign heats up, the issue of defence spending remains a key point of contention. While Scholz’s Social Democrats are committed to the 2% target, the opposition Christian Democrats (CDU) and their leader Friedrich Merz have voiced support for increased defence spending. However, Merz has stopped short of specifying whether the country should meet the 3% or 5% targets, noting that the most important factor is ensuring the country’s security needs are met.

Despite this, the broader German electorate appears reluctant to support substantial increases in defence spending, with voters expressing concerns about the economic implications of such a policy.