Germany faces a difficult path to meet NATO’s target of allocating 2% of GDP to defense by 2028. A major financial newspaper report, citing analysts, questions whether Berlin can reach that milestone within the stated timeframe.
At present, Germany’s core defense expenditure runs at roughly 1.3% of economic output. The 2% figure for overall military spending is said to be achievable mainly through a separate, extrabudgetary investment fund that supplements the official defense budget.
According to the sources cited, the pool of money available through this extrabudgetary channel could be exhausted by 2028. The analyst emphasized that raising the base defense budget is essential to keep total defense outlays at the required level. Experts suggest a substantial increase—nearly 60% more than today’s base figure—though achieving such a jump may prove difficult for Berlin given competing fiscal priorities and political constraints.
Former German Economy Minister Robert Habeck has acknowledged the country’s slower economic momentum. He described the stagnation as more persistent than what research groups had anticipated, which can complicate sustained investments in defense and other long-term priorities.
There has also been ongoing discussion about how sanctions on Russia have affected the German economy. Analysts have observed that the impact varies across sectors, influencing government revenue, industrial competitiveness, and the capacity to fund long-term security commitments without undermining other public needs.
Looking ahead, German policy discussions continue to weigh defense modernization, the efficiency of spending, and the resilience of the economy under external pressures. The central question remains whether the country can align its fiscal structure with NATO expectations while maintaining growth and social stability. Marked assessments from financial and security analysts point to a multi-year effort that will require parliamentary consensus, strategic planning, and careful budgeting to avoid reprising earlier shortfalls. The debate underscores the balance Berlin must strike between security commitments and the broader health of the economy, especially in a changing European security environment. In sum, the path to achieving the 2% target by 2028 involves not just larger budget numbers, but smarter allocation, faster decision cycles, and clear political will to follow through on stated defense priorities.