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2026-04-08 14:04:34
[German military spending surges 23%, pushing up deficit; Merz's ambition to build Europe's strongest army draws warning from Russia] (1) The German Federal Statistical Office reported that Germany's military spending increased by more than 23% last year, reaching 39 billion euros, pushing the budget deficit to its highest level in four years (the deficit in 2025 is 127.3 billion euros, 22.9 billion euros higher than in 2024, of which the federal government deficit is 85.4 billion euros). The government finances military spending through loans. (2) Since the escalation of the conflict in Ukraine in 2022, Germany has launched military buildup, expecting defense spending to exceed 500 billion euros by 2029, with the goal of making the armed forces "war-ready". The German central bank warned that the deficit in 2028 may reach 4.8% of GDP, the highest since 1995, due to defense funding and support for Ukraine. The German economy is expected to decline in 2023-2024 and stagnate in 2025. (3) Chancellor Merz has pledged to build the German army into "Europe's strongest conventional army". Russian Foreign Ministry spokeswoman Maria Zakharova warned that "the last time German political elites worked to make the country 'the main military power in Europe,' it ended in tragedy for all of humanity."
