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International Desk //

Donald Trump recently called for NATO member countries to increase their defense spending to 5 percent of GDP. However, German Chancellor Olaf Scholz rejected the call of the newly elected US president.

The German Chancellor said that 5 percent of GDP is a large amount of money. Moreover, there is a clear decision-making process within NATO. Currently, NATO members are being encouraged to allocate 2 percent of GDP to the defense sector.

German Economy:

Germany is mainly evaluated as the largest economy in Europe. Yet, the 5 percent GDP target for the country costs about 200 billion euros (about $206 billion) annually. However, Germany’s total federal budget is about 490 billion euros.

In that case, to accept Trump’s demand, Germany will have to save or borrow an additional 150 billion euros every year.

Trump’s claim:

The newly elected US President Trump recently pushed NATO members to increase their defense spending to 5 percent of GDP, which is more than double the current target.

His claim is not considered realistic for European countries and is opposed by many.

Among other European countries, France has found it difficult to increase defense spending due to its budget deficit. And in the case of the UK, there is no specific deadline for achieving the 2.5 percent defense spending target.

Meanwhile, the Czech Republic increased defense spending to 2 percent of GDP for the first time this year. Regarding Trump’s claim, the country’s Prime Minister Petr Fiala said that it is realistic to discuss achieving 3 percent within a few years.

On the other hand, German Chancellor Olaf Schulz stressed that it is more logical to move towards NATO’s long-term goal of 2 percent. Source: IRNA

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