Defense spending

Germany announces biggest defence spending rise since end of Cold War

Germany is to increase defense spending by more than €5bn (£4.4bn) this year, Angela Merkel’s government informed Nato on Friday.

It is the biggest rise in the German military budget since the end of the Cold War, but will still leave the country far short of meeting Nato’s target of spending 2 per cent of GDP on defence.

The increase comes after months of US pressure for Germany and other European members to contribute more towards the cost of the alliance, and will be seen as a victory for Donald Trump.

But it remains to be seen whether Mr Trump will be satisfied with military spending that still only equates to 1.35 per cent of Germany’s GDP.

The rise also comes amid growing concern among Germany’s allies over equipment shortages and breakdowns that led the country’s own military watchdog to warn last year that it could not meet its Nato commitments.