Germany to Allocate Rp2.5 Quadrillion for Defence in 2026

The German government will allocate a defence budget of 124.7 billion euros (approximately Rp2.5 quadrillion) for the 2026 fiscal year, according to NATO data cited by Die Zeit newspaper on Tuesday. The figure represents a defence spending target of 2.69 percent of the country’s GDP. German Chancellor Friedrich Merz previously stated that the nation aims to increase its defence spending target to 3.5 percent of GDP by 2029. Meanwhile, NATO Secretary General Mark Rutte warned on Monday that inadequate industrial capacity could hinder European NATO members and Canada from fully realising their defence spending plans. Speaking at a press conference ahead of the NATO Summit in Ankara, Turkey, Rutte noted that defence contractors are currently unable to accelerate production capacity sufficiently. European allies and Canada have so far allocated an additional 250 billion US dollars for NATO defence requirements.