Scholz Rejects Trump’s Proposal to Increase NATO Defense Budget

German Chancellor Olaf Scholz announced on Thursday his rejection of the call made by U.S. President-elect Donald Trump for NATO member states to raise their minimum defense spending to 5% of their GDP.

Speaking to the news website “Focus Online,” Scholz stated, “This is a substantial amount of money,” adding, “NATO has a very clear mechanism for decision-making,” according to the French news agency AFP.

Currently, NATO member states are required to spend at least 2% of their GDP on defense.

The center-left leader explained that 5% of Germany’s GDP—Europe’s largest economy—would equate to approximately €200 billion annually, while Germany’s federal budget amounts to around €490 billion.

Scholz emphasized that to meet Trump’s request, Germany would need to either cut spending or borrow an additional €150 billion each year.

He added, “This is why I believe it is better to focus on the path NATO has agreed upon for a long time.”

However, the chancellor acknowledged that “Germany must make more efforts for security,” noting that Berlin has already doubled its annual defense spending to nearly €80 billion in recent years.

Following the Russian invasion of Ukraine in 2022, Scholz announced an additional €100 billion in defense spending to modernize Germany’s armed forces.