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Germany plans €1bn of new defence spending amid pressure on Nato from Donald Trump

Posted on July 24, 2020

Germany is reportedly considering a major new round of new defence spending as it looks to address serious equipment shortages in its armed forces.

The plans include a commitment to spend an estimated €1bn (£875m) on new drone aircraft over the next nine years.

The move comes amid concerns Germany’s defence spending is lagging behind that of allies and questions over its ability to meet its Nato commitments.

The defence ministry wants to place more than €450m (£400m) of new orders this year alone, according to details leaked the German press.

They include orders for  six Hercules military transport aircraft, a search-and-rescue helicopter, rocket launchers, mobile command units, and new naval communications technology.

Also reportedly under consideration are an overhaul for the military’s Puma infantry fighting vehicles and a new maintenance contract for its NH90 transport helicopters.

The government has refused to comment on the reports other than to confirm a list of procurement orders had been presented to parliament.

Armoured infantryman of the Bundeswehr, the German armed forces, run through mud during a simulated attack during military exercises in October Credit:
Alexander Koerner/ Getty Images 

The plans are not covered under the existing defence budget and would have to be approved by MPs.

Ursula von der Leyen, the defence minister, warned at the weekend that Germany needed to spend more on its defence.

“This is about the future capability of our armed forces and Germany’s ability to stand by our allies,” she told Bild am Sonntag newspaper.

A €1bn deal to lease Israeli-made Heron military drone aircraft has been on the cards for some time and featured in the coalition agreement for Angela Merkel’s government.

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But the defence ministry appears to be eager to push it through sooner than expected, and the other spending plans are new.

Germany has come under pressure to increase its military spending as Donald Trump calls for Europe to pay more towards the cost of its defence.

Europe’s biggest economy currently lags far behind Nato’s agreed spending target of 2 per cent of GDP, at just 1.13 per cent last year.

Mrs Merkel’s government already plans to increase its defence budget to €42.4bn by 2021, compared €37bn last year. But the pace of Germany’s economic growth means that on current predictions that would still only amount to 1.15 per cent of GDP.

The new plans follow warnings from a parliamentary watchdog in February that shortages were putting Germany’s ability to meet its Nato commitments in doubt.

Hans-Peter Bartels, the parliamentary commissioner, warned that operational readiness was “dangerously low” and the military was “not equipped to meet the tasks before it”.

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