Germany Reaffirms Commitment to NATO by Increasing Defense Budget and Fighter Jet Project

German government leaders have committed to increasing the country's fixed defense budget, ensuring that Berlin will meet its defense spending target of 2% of Germany's economic output, even after the completion of the €100 billion special defense fund for NATO. Boris Pistorius, Germany's Defense Minister, emphasized on Friday, November 10, that Germany will allocate more spending in its medium-term financial plans. The German government had committed a day earlier, on Thursday, November 9, to transform its military into the 'backbone' of European defense as part of a significant policy shift to increase spending and modernize its forces following Russia's invasion of Ukraine in February 2022. Germany has faced criticism for its 'very low defense spending' for years and, despite being the largest economy in Europe, has largely relied on the United States for its security. This commitment to increase defense spending comes at a time when Olaf Scholz's three-party coalition is negotiating next year's defense budget commitments. NATO expects Germany to spend 1.57% of its GDP on defense this year (2023), but this figure is likely to rise to 2% next year (2024) due to the special defense fund that Scholz initiated as part of his policy shift after the war in Ukraine began. However, this 2% rate can only be maintained with a higher fixed budget. Scholz stated on Friday in a speech that the government will adjust its budget 'in such a way that [the military] has the resources it needs - even after the special fund runs out.' Scholz and Pistorius also emphasized their commitment to the project known as 'FCAS' for developing a fighter jet in collaboration with France and Spain, demonstrating closer cooperation with the European defense sector. Pistorius denied reports suggesting that Germany might withdraw from the contract due to disagreements over design and financing.