Germany is planning to borrow more than €800 billion by 2030 to finance a major rearmament program, marking a historic departure from the fiscal discipline policy the country has followed for decades.
According to a report by the Financial Times, Chancellor Friedrich Merz’s government intends to significantly increase defense spending in response to the growing security challenges facing Europe.
Projections indicate that Germany’s defense budget will reach €109 billion in 2027, rising further to €183.6 billion by 2030.
In addition to higher defense spending, Berlin plans to allocate €11.6 billion in military aid to Ukraine over the coming year.
German Finance Minister Lars Klingbeil defended the government’s new economic course, arguing that Germany cannot confront the threats posed by Russia while adhering to the long-standing “Schwarze Null” (“Black Zero”) policy, which emphasizes balanced budgets and strict limits on public debt.
The new plan signals a major shift in Germany’s financial and security policy as Berlin moves to substantially strengthen its military capabilities in the years ahead.
