{"id":40635,"date":"2019-03-19T21:21:17","date_gmt":"2019-03-19T21:21:17","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2019\/03\/19\/german-defense-industry-decries-berlins-new-budget-plan-as-too-low\/"},"modified":"2026-08-07T23:08:36","modified_gmt":"2026-08-07T23:08:36","slug":"german-defense-industry-decries-berlins-new-budget-plan-as-too-low","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2019\/03\/19\/german-defense-industry-decries-berlins-new-budget-plan-as-too-low\/","title":{"rendered":"German defense industry decries Berlin\u2019s new budget plan as too low"},"content":{"rendered":"\n

COLOGNE, Germany \u2014 Newly released budget figures risk putting Germany on a path to miss NATO-wide spending expectations and even undershoot its own, lower target, warn defense industry advocates.<\/p>\n\n\n\n

The assessment by the BDSV industry association comes after details emerged this week about the government\u2019s newest spending blueprint. While a bump of \u20ac2 billion (U.S. $2.3 billion) is in the offing for 2020 \u2014 to \u20ac45 billion, or 1.37 percent of gross domestic product \u2014 defense spending is slated to drop in the ensuing years, down to 1.25 percent of GDP in 2023.<\/p>\n\n\n\n

BDSV chief Hans Christoph Atzpodien called the projections \u201cdisappointing,\u201d especially in light of equipment problems plaguing the armed forces. He also warned that Germany could lose its standing on the world stage. The budget would have \u201cnegative effects \u2026 on Germany\u2019s role in the European Union\u2019s defense-cooperation policy and in NATO,\u201d Atzpodien wrote in a statement.<\/p>\n\n\n\n

The military budget as a percentage of GDP is a key yardstick for NATO members. All allies have pledged to boost defense spending toward 2 percent by 2024, mostly in reaction to a resurgent Russia. Germany was never on track to reach that level, which would translate into tens of billions of dollars extra within just a few years. But Defence Ministry chief Ursula von der Leyen had told allies Berlin would at least target a rate of 1.5 percent.<\/p>\n\n\n\n

The 2020-2023 spending proposal, crafted by Finance Minister Olaf Scholz of the Social Democrats, or SPD, is on the agenda for a Cabinet meeting Wednesday.<\/p>\n\n\n\n

Key drivers shaping the four-year plan include the expectation of slowing economic growth, and the government\u2019s policy of averting any new debt.<\/p>\n\n\n\t