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Germany’s Largest Defense Budget Since Cold War Aims to Strengthen NATO’s Security
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German Finance Minister Lars Klingbeil has announced a significant increase in defense spending, citing recent Russian incursions into NATO's airspace as justification for the move, Bloomberg reported on September 23.
Speaking to parliament Klingbeil emphasized that NATO’s security is under threat, referencing breaches in Polish, Romanian, and Estonian airspace by Russian aircraft.
“We’re ending the years-long policy of belt-tightening for the Bundeswehr,” said Klingbeil, as the government pledged to strengthen Germany’s defense capability.
Germany’s defense budget for 2026 will reach a post-Cold War high of $128 billion, including $30.5 billion from a special debt-financed fund. This marks a sharp increase from $101 billion in 2025, Bloomberg writes.
“Germany is sending a clear signal: we’re are a reliable NATO partner and stand by our commitment to the alliance,” Kingbeil stated.
German government, led by Chancellor Friedrich Merz’s conservatives and Klingbeil’s SPD, has committed to making Germany’s Bundeswehr the strongest conventional army in Europe.
Klingbeil warned that Russia could be in a position to attack NATO territory by 2029, though he stressed that this was not an immediate threat.
Germany’s overall budget for 2026, including defense and infrastructure investments, is projected to top €127 billion, with new borrowing set to rise to €175 billion. Despite the rising debt, Germany’s debt-to-GDP ratio remains the lowest among G7 nations, Bloomberg writes.
Previously, it was reported that Germany planned to allocate $4.4 billion in 2026 for the purchase of a new wheeled tank destroyer, intended to counter advanced Russian systems such as the T-90M.
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