Germany Reports Record-Breaking Defense Spending for 2026 Amid NATO Efforts for Burden Sharing

Germany has announced a historic increase in its defense budget for 2026, with expenditures projected at €124.7 billion, marking a 25.5% rise from the previous year. This budget constitutes 2.69% of Germany’s Gross Domestic Product (GDP), up from 2.22% last year, representing the largest absolute defense spending increase in recent German history, totaling approximately €25.4 billion.

According to NATO data presented during the summit in Ankara, only the United States spends more on defense within the alliance. While the U.S. defense budget for 2026 is expected to reach $850.2 billion, Germany's significant hike pushes the combined defense spending of NATO’s European allies and Canada up by nearly 20%, adding $139 billion and reaching approximately €680 billion (about $680 billion). Five NATO countries, including Estonia and Poland, are on track to meet the ambitious 5% GDP defense spending target.

German Chancellor Friedrich Merz, speaking at the NATO summit, emphasized the importance of supporting Ukraine in the face of Russian aggression and called for stronger European unity within NATO. Merz described the summit as a potential turning point in the ongoing conflict and stressed the need for a more European NATO that could preserve transatlantic relations.

This surge in German defense expenditure partly responds to former U.S. President Donald Trump's calls for fairer burden-sharing among NATO members and ongoing security concerns following Russia’s invasion of Ukraine. Germany aims to raise its defense spending to 3.5% of GDP by 2029, indicating a long-term commitment to increasing its military capabilities and contributions to collective defense efforts.

The current NATO members with the highest defense spending relative to GDP are Lithuania, Estonia, Latvia, and Poland, all exceeding U.S. projections for 2026, which stand at 3.17%. These developments underscore a shift in European defense policy, with Germany taking a front-seat role in boosting military readiness and financial commitments within the alliance.