Germany to raise defense spending above 2% of GDP in response to Russia

Germany will boost military spending above 2% of GDP and create a strategic natural-gas reserve, Chancellor Olaf Scholz said Sunday, marking a significant shift in the country’s defense and energy policies in reaction to Russia’s war in Ukraine.

The measures, all of which had long been resisted by successive governments and will now be reflected in this year’s budget, underline how profoundly Russia’s attack on Ukraine is upending European politics after almost eight decades of nearly uninterrupted peace on the continent.

“We have to ask ourselves: What capacities does Putin’s Russia have? And which capacities do we need to counter his threats?” Mr. Scholz told parliament, gathered for an extraordinary session on Sunday. “It’s clear, we will need to invest a lot more in the security of our country to defend our freedom and our democracy.”

“Putin wants to establish a Russian empire…the question is…whether we can summon the strength to set boundaries to warmongers like Putin,” Mr. Scholz said.