Berlin Plans Record €108 Billion Military Budget Amid Russia Concerns

Germany has announced a record increase in military spending to €108 billion in response to new Russian provocations and threats to the security of NATO's eastern flank.

The Gaze reports on it, referring to Bloomberg.

German Finance Minister Lars Klingbeil said that recent violations of NATO airspace by Russian aircraft justify a significant increase in the country's military spending.

“Putin is testing NATO,” added the Social Democrat co-leader, referencing Russian intrusions into Polish, Romanian, and Estonian territory. “Nobody believes that this happened by accident.”

Presenting the 2026 budget to parliament, he stressed that the government's key task is to strengthen Germany's deterrence and defense capabilities in response to the growing threat from the Kremlin.

“We’re ending the years-long policy of belt-tightening for the Bundeswehr,” Klingbeil said. “Germany is sending a clear signal: we’re are a reliable NATO partner and stand by our commitment to the alliance.”

Defense spending in 2026 will rise to a record €108 billion, the highest level since the Cold War. The government plans to draw part of the funds from a special defense fund created through debt financing. 

The politician warned that Russia could potentially attack NATO territory by 2029, urging people not to be naive about Vladimir Putin's intentions. 

The overall financial plan for 2026 also provides for an increase in government borrowing to almost €175 billion, in particular through the additional sale of debt securities. 

At the same time, the government acknowledges that it faces enormous challenges as early as 2027 due to a projected deficit of around €30 billion.

As The Gaze reported earlier, Germany has changed its position and become a supporter of actively using frozen Russian assets to support Ukraine's defense, prompting other European countries to seek similar financing options.