Germany: Trump's 5% NATO demand too costly, Scholz says
German Chancellor Olaf Scholz has dismissed demands from US President-elect Donald Trump that Germany and other NATO allies increase defense spending to at least 5% of gross domestic product (GDP).
"Five percent would be over €200 billion ($204 billion) per year — the federal budget is not even €500 billion," Scholz said at a campaign event in the western German city of Bielefeld on Monday.
"That would only be possible with massive tax increases or massive cuts to many things that are important to us," he said, insisting that he would not countenance cuts to pensions, local government or transport infrastructure.
Germany only reached the current NATO target of 2% of GDP last year, the first time it had done so since the end of the Cold War, and Scholz promised that the country would maintain that level.
"I guarantee that we will continue to spend 2% of our economic output on defense," he said. "Anyone who says that's not the way to go must also say where the [extra] money will come from."
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