Germany's defense spending currently stands at 90.6 billion euros, which is 2.12% of its GDP, but a significant increase is required to meet NATO's new spending target.

U.S. President Donald Trump's influence on NATO remains uncertain, as he has urged allies to allocate 5% of their GDP to defense, implying that European nations are not contributing sufficiently.

Should NATO implement a 5% spending target, Germany and other member states would need to more than double their defense budgets, prompting Chancellor Olaf Scholz to highlight the potential need for substantial tax increases or cuts in other critical areas.

In response to these challenges, Chancellor Scholz has proposed reforms to Germany's debt brake and the establishment of a 'Germany Fund' for investments, although these ideas have met with skepticism from opposition parties such as the Union and FDP.

A special fund for defense, initially set at 100 billion euros, is included in NATO's accounting of defense expenditures and is also used for military support to Ukraine.

As discussions continue, the funding sources for maintaining Germany's defense spending at the current 2% rate after the special fund for the Bundeswehr is exhausted in 2027 remain unclear.

The ongoing federal election campaign has centered on how to sustain the current defense spending level of 2% once the special fund is depleted.

New NATO guidelines are being developed in response to current security threats, particularly those posed by Russia's actions in Ukraine, with updated goals set for approval at a NATO defense ministers' meeting in June 2025.

These updated NATO targets aim to address immediate threats and will cover a timeline extending to 2044, with many objectives needing to be met sooner, especially regarding troop levels and new weapon systems.