Germany Pushes Back on Trump’s 5% NATO Defense Spending Demand

Germany has firmly pushed back against former U.S. President Donald Trump’s proposal for NATO countries to spend 5% of their GDP on defense, a dramatic increase from the alliance’s long-standing 2% target. Chancellor Olaf Scholz dismissed the idea as economically unfeasible, noting it would require Germany to allocate over €200 billion annually, nearly 40% of its entire federal budget, toward defense. He warned that such an increase would force drastic tax hikes or painful cuts to social programs.

Defense Minister Boris Pistorius echoed Scholz’s stance, calling the proposal unrealistic and detached from the practical fiscal capacities of member states. With Germany battling a severe recession and high energy costs, officials argue that the focus should be on meeting NATO’s actual capability goals rather than arbitrary percentage figures. The German government, while supportive of NATO, emphasized that defense spending must align with economic realities.

Vice Chancellor Robert Habeck suggested a more moderate alternative of 3.5% GDP spending, an idea gaining traction within NATO as a possible compromise. This figure, he argued, reflects a more sustainable approach, especially for larger economies that must also maintain robust social safety nets.

Germany’s stance has reignited broader debate across Europe about defense priorities and financial burden-sharing within NATO. While some Eastern European members already exceed the 2% threshold due to proximity to Russia, most allies remain cautious about setting targets that could destabilize domestic economies without clear strategic returns.