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IW boss Michael Hüther is calling for a massive increase in the defense budget by 300 billion euros. The Bundeswehr’s current equipment is not sufficient.
Cologne – The Topic Armament construction is not least in view of the Ukraine War and the threat posed by Russian President Vladimir Putin are at the centre of political debates in Germany. In view of the current global security situation, the head of the German Economic Institute (IW), Michael Hüther, is now calling for a significant increase in the special fund for the armed forces.
In a conversation on Tuesday (2 July), Hüther stressed that the current 100 billion special fund is not sufficient.
IW boss Hüther demands 300 billion euros for the Bundeswehr
Hüther demanded in an interview with Rheinische Postmore Money in the defense sector An increase to 250 to 300 billion euros is necessary in order to adequately equip the Bundeswehr – a sum that CDU politician Kiesewetter already called for at the beginning of the year for the Bundeswehr increase. The IW boss warned the newspaper: “During the Cold War, the Federal Republic under Peace Chancellor Willy Brandt spent 3.5 percent of its gross domestic product on defense.”
The two percent currently achieved is sufficient for current expenditure, but the Bundeswehr’s equipment remains inadequate: “We need an increase to 250 to 300 billion euros. This is the only way we can ensure that our army is equipped for war.”
IW boss Hüther calls for massive increase in Bundeswehr special funds
The special fund of 100 billion euros, which is anchored in the Basic Law, was set up after the Russian invasion of Ukraine in 2022 to provide the Bundeswehr with better and more modern equipment. But already in April of this year it became known that these funds had been fully earmarked for various spending projects.
The Federal Minister of Defence has already stressed several times that we must invest in our defence now and in the future because it is the key to the future and security of our country.
Boris Pistorius with record demand: Bundeswehr budget to rise to 90 billion in 2028
Defense Minister Boris Pistorius (SPD) and the Bundeswehr are therefore still facing financial bottlenecks. So far, these are still relatively “small” expenses. According to information from government circles, Pistorius’ department has notified the Federal Ministry of Finance (BMF) of a need for around 90 billion euros for 2028, reported the Business Insider (behind paywall).
Upon request from IPPEN.MEDIA A BMVG spokeswoman explained: “The Federal Minister of Defense has already stressed several times that we must invest in our defense now and in the future because it is the key to the future and security of our country.” However, the process of drawing up the 2025 budget and medium-term financial planning is currently part of the government’s internal procedure. Please understand that these discussions cannot be anticipated.
The demands of IW boss Michael Hüthe will not be commented on – as is the case with “external statements in principle”. Boris Pistorius repeatedly stresses that he needs more billions to make the German armed forces capable of defending themselves. Most recently, Germany reported to the NATO Estimated defense spending for the current year is 90.6 billion euros. This would clearly achieve the alliance’s two percent target. But the money planned for the Bundeswehr will not be able to keep up with the rising costs, even according to Ifo forecasts.
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