Top economist Hüther calls for 300 billion for the Bundeswehr
With the 100 billion Euro special fund, the Bundeswehr is supposed to be better equipped. The money is already planned, but the troops are still far from being battle-ready. Michael Hüther estimates that it would take two to three times that amount - and he considers it financially feasible.
The head of the Institute of the German Economy (IW), Michael Hüther, has demanded significantly more money for the Bundeswehr. "The special fund for the Bundeswehr amounts to 100 billion Euro. That's not enough," Hüther told the "Rheinische Post." "We need an increase to 250 to 300 billion Euro. Only then will we achieve a battle-ready equipment of our army," he continued.
"In the Cold War, the Federal Republic, under Peace Chancellor Willy Brandt, spent 3.5 percent of its Gross Domestic Product on defense," said Hüther. "Now we have finally achieved two percent in the face of a serious crisis." For current expenses, that's enough. But the equipment of the Bundeswehr is still inadequate."
The increase in the special fund would also be financially feasible, Hüther told the newspaper. "After all, the peace dividend since 1990 amounted to around 600 billion Euro." This money was not invested in infrastructure, digitalization or education. "We have used these funds in part to reduce debt. But we have mainly consumed it. That catches up with us now," said Hüther.
The constitutionally anchored and 100 billion Euro large special fund was established after the Russian attack on Ukraine in 2022 to better and modernize the Bundeswehr. In April, it was announced that, according to the Defense Ministry's statements, it was already fully planned for expenditure projects.
The demand for additional funding for the Bundeswehr has been made by Michael Hüther, with an estimate of 250 to 300 billion Euro needed to make the German Armed Forces battle-ready, following the Russian attack on Ukraine. This request comes after Hüther noted that the current 100 billion Euro special fund is insufficient and that the Peace Dividend since 1990, amounting to around 600 billion Euro, could be used to invest in the Bundeswehr's equipment. The German Armed Forces, despite currently reaching the 2% GDP defense spending target, are still not fully equipped due to this underinvestment. The military is also facing criticism for not being ready for an attack, such as the one on Ukraine, despite the established special fund.
