NATO on a defense course: rising costs and difficult decisions for Germany!

In a current political debate, Donald Trump, former President of the United States, calls on NATO countries to issue 5 percent of their gross domestic product (GDP) for defense. As Bild reported the urgency of a higher financial participation of the NATO members, a claim that he has repeated several times.

Defense spending in Europe is facing a change due to geopolitical tensions and the challenges in transatlantic relationships. According to perspective abroad , NATO members have to rethink their military budgets, since many countries do not even achieve the goal of 2 percent of GDP for defense. A possible withdrawal from the United States from the European Security Architecture could bring considerable financial consequences for the NATO countries.

increase in defense spending

Some NATO countries, including Germany, face the challenge of drastically increasing their defense spending. Experts explain that Germany would have to double its expenditure from around 50 billion euros to around 100 billion euros in order to do justice to the pressure. In addition to Germany, other countries such as Luxembourg (+300%), Belgium (+150%) and Great Britain also require additional funds to reach the 3%mark.

In addition to increasing defense expenditure, the affected states have various financing options, including tax increases, cuts in pensions and social benefits as well as restrictions in the health system. These potential measures could encounter resistance among the population, and discussions about a wealth tax and a reform of inheritance tax are already being conducted.

NATO general secretary Mark Rutte has asked citizens to bring financial victims to ensure long-term security. The pressure on the states is growing and the need to increase defense expenditure could lead to many too far -reaching changes in the household, which could even result in consideration of emigration for citizens to escape financial burdens.