On 17 May, German officials informed NATO that the country has increased its defence budget by more than EUR5 billion (USD5.6 billion) to EUR47.32 billion in 2019. The German government also announced that it would increase its defence budget to EUR49.67 billion in 2020. The 2019 figure raises Germany’s defence spending to 1.35% of GDP, although it still remains short of the 2% of GDP spending goal set by NATO.
However, this latest increase in the defence budget has to be seen against an austere economic forecast. According to recent national economic and taxation estimates, Germany is expecting an economic slowdown, with consequences for the federal budgets; the budget increase will be EUR70 billion less than originally estimated over the next four years.
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