Germany to Boost Defense Spending, Reform Bundeswehr

German Chancellor Friedrich Merz has pledged to transform the Bundeswehr into Europe's strongest conventional army in response to the threat from Russia. Merz's plan includes raising the annual defense budget above €60 billion and exempting this spending from Germany’s strict debt limits. The initiative also involves expanding troop numbers and introducing new volunteer military service to address years of underinvestment. Last year, Germany met NATO's 2% GDP defense spending target for the first time, and Merz’s coalition government has secured a major spending deal with about half allocated to defense. However, concerns remain about the Bundeswehr’s current readiness. The move signifies a major shift in German defense policy and aims to reassure both European allies and the U.S. of Germany's commitment to collective security.