Berlin could include transport infrastructure costs in its defense budget to maintain spending above the 2% threshold
Germany is considering including the cost of military transport infrastructure in its defense budget to meet NATO’s spending target, according to a Politico report citing a senior government official.
Germany’s allies have criticized the country for not meeting its commitment to spend 2% of its GDP on defense each year.
Germany, the largest economy in the EU and NATO member in Europe, is looking to include the cost of maintaining roads and railways used for military transportation in its defense budget to reach the target set by the alliance, particularly after 2027, the official told Politico.
The country’s annual defense budget allocated for NATO will also include some spending from other departments, including the Foreign Office, Chancellery, and the Ministry of Finance, a Defense Ministry spokesperson said.
“The federal government is committed to NATO’s 2% target,” the spokesperson told the media outlet.
NATO’s internal rules allow spending on “the military component of mixed civilian-military activities,” but only when the military component is “specifically accounted for or estimated.”
Despite facing challenges within its own armed forces, Germany has been the biggest supporter of Ukraine in the region, providing and committing at least €28 billion ($30.3 billion) in military aid to Kyiv in current and future pledges. Berlin’s military supplies to Ukraine include advanced equipment such as Leopard 2 tanks, Marder infantry fighting vehicles, and US-made Patriot air-defense systems.
Shortly after the escalation of the Ukraine conflict in 2022, Germany established a dedicated €100 billion ($107.2 billion) fund to modernize the Bundeswehr. This move was expected to help the government meet the annual spending threshold.
Germany fell short of the defense spending goal in 2022 and 2023, but reportedly aims to reach the target sometime this year. However, according to Bild, it appears likely to miss the goal again next year. The current defense budget for 2025 stands at €52 billion ($56.9 billion), but these funds will be almost entirely spent on operating costs such as salaries for soldiers, heating barracks, and repairing existing weapons, the report notes.
Former US President Donald Trump previously suggested that the US should not defend NATO allies that fail to meet the bloc’s military spending threshold in the event of an attack. His comments drew criticism within NATO, with German Chancellor Olaf Scholz asserting that the bloc’s “promise of protection applies unreservedly.”