Scholz Criticizes Proposal for Sharp Increase in Defense Spending

German Chancellor Olaf Scholz has criticized Economy Minister Robert Habeck’s call for a substantial increase in the defense budget, labeling it as “half-baked.” Read Full Article at RT.com

Scholz Criticizes Proposal for Sharp Increase in Defense Spending
German Economy Minister Robert Habeck has asserted that Berlin must increase its defense spending to effectively counter Russia.

Chancellor Olaf Scholz has strongly criticized Habeck’s recent proposal to double the nation’s defense budget as a measure to contain Russian aggression. He described the suggestion as poorly conceived, warning that it would merely impose an additional burden on German citizens.

In an interview with Der Spiegel magazine last week, Habeck, who is also the Green Party’s chancellor candidate for the upcoming snap elections in February, advocated for a significant boost to defense spending. He stated that Germany should allocate 3.5% of its national GDP to defense, a figure that surpasses NATO's current target of 2%.

To justify his demand, Habeck cited perceived threats from Moscow, saying, “We need to spend almost twice as much on our defense so that [Russian President Vladimir] Putin does not dare to attack us. We must secure peace and prevent further war.”

Despite this, Putin has repeatedly claimed that Russia does not intend to attack any member of the US-led military alliance. He has cautioned, however, about the potential for direct confrontation with NATO due to the alliance's increasing involvement in the Ukraine conflict, where it has provided substantial financial and military support, including long-range weaponry that Ukrainian forces have used against Russian territory.

In a conversation with Stern magazine on Tuesday, Scholz labeled Habeck’s proposal as lacking clarity. “The idea seems somewhat half-baked to me,” he remarked, questioning how Habeck planned to nearly double the defense budget from just under €80 billion to €140 billion without specifying how the funds would be allocated or sourced. “Who will pay the bill? The citizens?” he asked.

According to NATO data cited by the German dpa news agency last week, Germany has projected defense spending of €90.6 billion for the upcoming year, slightly exceeding the 2% GDP spending threshold. This target has been achievable in part due to a €100 billion special debt-financed fund established by Scholz’s government in 2022, following the onset of Russia’s military action against Ukraine. The fund is scheduled for expenditure by the end of 2027.

Germany stands as one of the largest providers of military aid to Ukraine, second only to the United States. The Kiel Institute for the World Economy reports that Berlin has allocated approximately €11 billion for military assistance to Ukraine from January 2022 to October 2024.

Alejandro Jose Martinez for TROIB News