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Budgeting for defense: The German case

Author

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  • Michael Brzoska

    (Institute for Peace Research and Security Policy at the University of Hamburg, Germany)

Abstract

Increases in German military expenditures since the mid-2010s have been driven by a number of factors. In the course of intense political debate, Germany has changed from a reluctant supporter to a promoter of more military spending, endorsing NATO member states’ commitment to spending 5% of GDP on defense and security. Recent large increases were made possible by major changes in budgeting rules with respect to additional public debt. However, the German government faces major fiscal choices to accommodate the path towards the 5% goal. Up to mid-2026, the government was able to accommodate rising military expenditures without major changes in tax income, moderately higher indebtedness as well as limited cuts in spending of most government functions, with some exceptions such as development assistance. For the coming years, the government’s plan foresees limited spending cuts and a substantial increase in public debt. But current mid-term budget planning is spongy, based on optimistic assumptions about future economic growth.

Suggested Citation

  • Michael Brzoska, 2026. "Budgeting for defense: The German case," Economics of Peace and Security Journal, EPS Publishing, vol. 21(2), pages 58-72, October.
    • Handle: RePEc:epc:journl:v:21:y:2026:i:2:p:58-72
    DOI: 10.15355/epsj.21.2.58
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    Keywords

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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