BRUSSELS: Germany announced on Sunday it was committing 100 billion euros ($113bn) to a special armed forces fund and would keep its defence spending above two per cent of GDP from now on. It was one of the most significant shifts in European security policy in decades, brought on by Russia’s invasion of Ukraine.

The announcement by German Chancellor Olaf Scholz, which came hours after Germany announced it would send weapons and other supplies directly to Ukraine, underscored how Russia’s war in Ukraine was rewriting Europe’s post-World War II security policy.

Scholz’s announcement of new defence funding is significant for Germany, which has come under criticism from the United States and other Nato allies for not investing adequately in its defence budget. Germany has long resisted pressure from the US and others to raise its defence spending to 2pc of economic output in the light of its 20th century history and resulting strong pacifism among its population.

According to Nato statistics, Germany is expected to have spent 1.53pc of its GDP on defence in 2021. Nato member states committed to spending 2pc of their GDP on defence, but Germany has consistently spent much less.

“It’s clear we need to invest significantly more in the security of our country, in order to protect our freedom and our democracy,” Scholz told a special session of the Bundestag in Berlin. He said the 100-billion-euro fund was currently a one-time measure for 2022.

It wasn’t immediately clear whether similar funding would be allocated in future years. But Scholz indicated Germany will exceed the 2pc of GDP threshold going forward, signaling an overall future increase in defence spending. Germany’s entire defence budget by comparison was 47 billion euros in 2021.

Published in Dawn, February 28th, 2022