German Chancellor Olaf Scholz expressed his opposition to U.S. President-elect Donald Trump’s demand that NATO member states increase their defense spending to 5% of their GDP, emphasizing that such a move would mean “a lot of money” for the German budget.

“I believe it’s better to focus on what NATO has long agreed upon,” Scholz told the online edition of Focus. Currently, NATO member countries are required to invest 2% of their GDP in military expenditures.

According to Scholz’s calculations, if Trump’s proposed target were accepted, Germany’s annual defense spending would amount to €200 billion. In comparison, Germany’s federal budget for 2025 is approximately €490 billion.

“It’s a lot of money,” commented Scholz.

In 2024, Germany’s defense spending exceeded the 2% GDP threshold for the first time, meeting the NATO target set in 2014 following Russia’s annexation of Crimea. This increase was largely due to a special €100 billion fund established by Scholz just days after the outbreak of the war in Ukraine in February 2022, aimed at rearming and modernizing Germany’s defense capabilities. However, once that fund is depleted, Germany will need to find additional resources to maintain defense spending at 2% of its GDP.

“Germany must do more for its security, there is no doubt about that. And we need to ensure that for the future. It’s truly a monumental shift compared to the past,” the Chancellor stressed.