Germany to Spend Record Amount on Its Military and Infrastructure

Germany announced a budget on Tuesday that would increase its military spending to 3.5 percent of its economic output by 2026 and expand funding to improve its crumbling infrastructure, as part of an investment push aimed at kick-starting the country’s sluggish economy.

The proposed spending plan was presented hours before members of the North Atlantic Treaty Organization gathered in The Hague for a meeting during which they are expected to support a resolution to raise military spending to 5 percent of their gross domestic product.

For decades, Germany, Europe’s largest economy, has failed to invest in its public infrastructure and has lagged behind other NATO member countries on military spending. But amid pressure from President Trump and a growing concern among Western Europeans of the threat posed by Russia, Germany is reversing course.

“What we are doing here is a paradigm shift in investment policy,” Lars Klingbeil, the country’s finance minister, told reporters in presenting the draft budget in Berlin on Tuesday.

The budget relies heavily on borrowing to pay for investments this year worth 115.7 billion euros, or $134 billion, of which €62.4 billion is earmarked for military spending.

Under the framework, Germany’s funding for its military will increase to at least 3.5 percent of its gross domestic product by 2026. It will continue to raise spending through 2029, which will be needed if it is to reach the proposed 5 percent NATO benchmark, which Mr. Trump has demanded members meet.