Germany's Defense Budget Rises Amidst Budget Cuts and Unused Aid Package

Germany's Cabinet has approved a draft 2024 budget that includes lower spending overall but an increase in defense spending, as the country aims to meet NATO's target of spending 2% of GDP on defense. The budget calls for spending of €445.7 billion, down nearly 7% from this year, with defense spending set to rise by €1.7 billion to €51.8 billion. Germany plans to reach the NATO target with the help of a special €100 billion fund and aims to meet it through its regular budget in the future. The government is returning to compliance with Germany's debt brake rules, which limit borrowing, and has agreed not to raise taxes.