Germany to boost defense spending to €162bn by 2029, overtaking France and the UK

Under budget plans, Germany will increase defense spending from €95bn this year to €162bn in 2029, raising the percentage of GDP devoted to defense from 2.4% to 3.5%. This includes €8.5bn a year in military aid to Ukraine. New chancellor Friedrich Merz has relaxed the debt ceiling, allowing massive defense and infrastructure borrowing in anticipation of a growing deficit.