How does Germany's defense spending as a percentage of GDP compare to France and the UK?
Executive summary
Germany has historically spent less of its GDP on defence than the United Kingdom and roughly the same or slightly less than France in recent years; in 2023 German defence outlays were about 1.6% of GDP but political commitments and special funds are driving a rapid rise toward—and in some sources already to—about 2% by 2024–25, while the UK and France have been at or above the NATO 2% benchmark (UK typically higher than France) [1] [2] [3]. Differences in headline numbers reflect timing, accounting rules (NATO vs national measures), and one‑off funds such as Germany’s €100bn “special fund” and UK policy pledges that raise its share further [1] [4] [3].
1. Snapshot: where the three stand today
Most recent reporting and datasets show the UK spending the largest share of GDP on defence among the three: the Institute for Fiscal Studies reports the UK spent about 2.3% of GDP on defence in 2024 versus roughly 2.0% for both France and Germany in 2024 according to the same synthesis of NATO/SIPRI/official numbers [2]. Independent trackers and research note that Germany’s 2023 level was materially lower—around 1.6%—but that Germany’s announced increases mean its share rose toward 2% in 2024–25 depending on which line items are counted [1] [5].
2. Trajectory: why Germany is closing the gap
Germany has committed large, rapid increases in defence spending since 2022, including a €100bn Sondervermögen and multi‑year plans to raise annual outlays; some analysts and banks forecast German defence spending could reach 3% of GDP in coming years under certain fiscal rules and political choices, while official German plans aim for roughly 2% by the mid‑2020s and to exceed 2% by 2028 in baseline projections [1] [5] [6]. By contrast, the UK has its own near‑term increases enshrined in commitments to reach around 2.5–2.6% by 2027 depending on definitions, and France has historically hovered close to 2% with ongoing capability investments [3] [2] [7].
3. Why percentages vary: definitions, special funds and NATO accounting
Headline “% of GDP” comparisons are sensitive to what is counted: NATO has a definition of defence expenditure that some governments use for reporting, while national budgets may include extra security, intelligence or one‑off special funds that push the headline higher or lower—Germany’s Sondervermögen is a prime example of a one‑off vehicle that changes the short‑term ratio and complicates year‑on‑year comparisons [4] [1] [3]. Different data sources (SIPRI, World Bank, Our World in Data, national treasuries) may also report calendar‑year vs fiscal‑year spending and use current vs constant prices, so cross‑country snapshots require careful alignment of definitions [4] [8].
4. Wider context: scale versus share and NATO expectations
Measured as absolute euros or dollars Germany remains one of Europe’s largest defence spenders by total outlay—accounting for a large share of EU defence expenditure—yet its burden (spending relative to GDP) was lower than the UK’s until recent policy changes [9] [5]. NATO’s political 2% benchmark frames debates: many EU states have moved toward or above 2% in 2024–25, and the UK has pledged further rises to 2.5%+, while Germany’s rapid increases mean the gap in percentage terms is narrowing even if historical underinvestment left capability shortfalls that take longer to remedy [10] [3] [1].
5. Bottom line: direct comparison and caveats
Directly comparing current shares: the UK generally spends the highest share of GDP on defence (around 2.3% in recent reporting), France sits close to 2.0%, and Germany has risen from about 1.6% in 2023 to roughly 2.0% in 2024 depending on accounting choices and the inclusion of special funds—meaning Germany is catching up but exact ranking can flip depending on which data source, year and definition are used [2] [1] [3]. Sources differ on projections and on whether temporary funds should be treated as recurring, so while the political trend is clear—German spending is increasing fast—the precise percentage gap with France and the UK depends on definitions and timing [5] [6] [4].