Category: World

Germany to Boost Defense Spending to 3.1% of GDP, Allocates €11.6 Billion for Ukraine

Apr 30, 2026 13:09 Updated Apr 30, 2026 13:19

2 min read

Authors: Cyril Barabaltchouk
News Writer

Soldiers stand on the grounds of the Breitenworbis highway maintenance depot in Thuringia, Germany, during a transnational Bundeswehr exercise. (Source: Getty Images)

The German government approved key targets for its 2027 draft budget, allocating €11.6 billion ($13.57 billion) in direct support for Ukraine, Reuters reported on April 29.

This commitment is part of a medium-term financial framework that pledges €8.5 billion ($9.95 billion) annually between 2028 and 2030.

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Total defense spending in the 2027 budget is set to reach €144.9 billion ($169.53 billion) when special defense fund and earmarked aid for Ukraine are included. Chancellor Friedrich Merz noted that recent global developments have underscored the necessity of investing in defense capabilities, bringing Germany’s total military expenditure to 3.1% of its gross domestic product in 2027.

The 2027 draft budget allocates total spending of €543.3 billion ($635.66 billion), an increase of 3.6% over the previous year. To finance these objectives and revitalize the economy, the government plans total borrowing of €196.5 billion ($229.91 billion), departing from years of fiscal conservatism to address infrastructure and security needs, Reuters reported.

Category: Latest news

Germany Goes All-In on Strike Drones—Artillery Units to Hit Targets 300km Away

Apr 17, 2026 17:54

Addressing the scheduled adjustment to bilateral aid from 2028, Finance Minister Lars Klingbeil highlighted the recently approved €90 billion ($105.3 billion) EU loan for Ukraine. This loan, which had previously been delayed, would bolster Ukraine’s long-term financial stability. Klingbeil added that the figures in the current framework remain flexible and could be adjusted in the future depending on Ukraine’s specific defense requirements.

Germany’s increased defense spending for 2027 coincides with a significant pivot toward unmanned technology. The German military had recently signed a framework agreement with Rheinmetall, valued at up to €1 billion ($1.17 billion), to acquire FV-014 loitering munitions. The first €300 million ($351 million) order includes roughly 2,500 units designed to strike targets up to 100 kilometers away.

Rheinmetall has already expressed readiness to supply the FV-014 to Ukraine, provided funding is secured, with serial production for the German army set to begin in the first half of 2027. This procurement follows similar drone contracts with defense startups Stark and Helsing, aimed at equipping German and allied units with advanced strike capabilities by 2027.

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