Germany's defense minister reveals that NATO's 2% target is not enough: 'We'll probably need more'

• Boris Pistorius, Germany's defense minister, stated on a CNBC-moderated panel that spending 2% of GDP on defense is just the beginning.
• The German Chancellor, Olaf Scholz, affirmed that Germany would adhere to the 2% spending target in the future, specifically in the 2020s, 2030s, and beyond.
• In 2014, only three NATO members were expected to reach the 2% target, but this year, 18 out of 31 members are projected to achieve it.

On Saturday, Germany's defense minister stated that their dedication to allocate 2% of GDP towards defense was merely the initial step and further investments may be necessary.

The German Chancellor, Olaf Scholz, stated that the 2% spending target would be achieved in the 2020s, 2030s, and beyond.

Boris Pistorius, Germany's federal minister of defense, emphasized that the 2% spending was intended as a minimum.

Pistorius stated on a CNBC-moderated panel at the Munich Security Conference that 2% is just the beginning and we may require more in the future years.

Last weekend, former U.S. President Donald Trump stated that he would urge Russia to take any action it desires against NATO members who do not adhere to the alliance's defense spending standards.

In 2006, NATO member countries pledged to spend at least 2% of their GDP on defense to maintain the alliance's military readiness. This year, 18 out of 31 NATO countries are projected to achieve this goal, compared to only three in 2014.

Defense spending is expected to rise due to the escalating geopolitical tensions globally, particularly in Europe, the Indo-Pacific, and Africa, as stated by Pistorius.

"Attention needs to be paid to global events, as everyone must engage there, including the U.S., NATO, European Union, and others," he stated.

While we must strive to accomplish more in Europe, others, such as the U.S., may shift their focus to the Indo-Pacific, potentially reducing their engagement in Europe. As a result, we are faced with a challenge and must accept this reality.

Pistorius argued that a 4% spending target was not reasonable, stating that it was more important to spend what was necessary for the development of the defense industry, rather than confirming a specific number.

He stated that we could possibly achieve 3% or possibly 3.5%, but it would depend on global events.