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Germany plans to increase its defense spending in response to US President Trump’s call for NATO members to achieve a 5% GDP target, as Chancellor Friedrich Merz aims to transform the Bundeswehr into Europe’s strongest military. Foreign Minister Johann Wadephul indicated that Berlin is considering a proposal from NATO Secretary-General Mark Rutte, advocating for a 3.5% focus on hard military spending by 2032, supplemented by 1.5% for related expenses like infrastructure. Merz has committed to removing the borrowing cap for defense and investing heavily in modernization efforts.
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