NextFin news, German Chancellor Friedrich Merz declared on Monday at the NATO summit in The Hague that Germany's decision to raise its defense budget was instrumental in preventing the potential dissolution of the North Atlantic Treaty Organization (NATO).
Merz emphasized that constitutional changes in Germany allowed the creation of a special defense fund exempt from the country's debt brake, enabling loans up to 500 billion euros. This financial commitment includes increasing defense spending to 3.5% of Germany's GDP by 2029, alongside an additional 1.5% allocated for necessary military infrastructure.
Speaking in an interview with the German broadcaster ZDF, Merz said, "If we had not changed the constitution and committed to spending 3.5% on defense plus 1.5% on infrastructure, NATO would likely have collapsed that day. We prevented this." The summit took place on June 24-25, 2025, in The Hague, Netherlands.
Merz's announcement follows Germany's response to the ongoing security challenges posed by Russia, which German intelligence agencies assess as preparing for a large-scale conflict with NATO. The increased defense spending marks Germany's most ambitious military rearmament program since the end of the Cold War.
Additionally, Merz highlighted Germany's efforts to strengthen NATO's eastern flank, including the deployment of a 4,800-soldier armored brigade in Lithuania, Germany's first permanent foreign troop stationing since World War II.
Despite the increased budget, Germany faces challenges in recruiting and training sufficient military personnel, with current active forces numbering approximately 182,000 soldiers, below the target of 260,000 active troops and 200,000 reservists.
Merz also addressed the ongoing conflict in Ukraine, preparing for a potentially prolonged war and reaffirming Germany's commitment to supporting Ukraine's defense capabilities without prematurely deploying German peacekeeping troops without Bundestag approval.
The German government's defense spending increase aligns with NATO's broader goals to enhance collective security amid geopolitical tensions, particularly following Russia's invasion of Ukraine and calls from former U.S. President Donald Trump for European allies to boost their military contributions.
Sources: Ukrainian Pravda (https://www.pravda.com.ua/news/2025/09/1/7528739/), Adevărul (https://adevarul.ro/stiri-externe/europa/friedrich-merz-daca-germania-nu-ar-fi-marit-2468870.html), Tekedia (https://www.tekedia.com/chancellor-merz-pledges-to-bolster-germanys-defense-spending-as-apprenticeship-system-booms/)
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