Germany will not meet its commitment to spend 2 per cent of gross domestic product on defence in the next four years and the ratio will in fact decline from 2020, according to FT calculations based on government budget plans.
The failure to meet the target comes despite a sharp ramp-up in military expenditure and will provide ammunition for US president Donald Trump, who has argued that Berlin is “freeriding” on Washington’s defence capabilities.
Nato burden-sharing was one of many contentious issues addressed in talks between Mr Trump and Angela Merkel, the German chancellor, in Washington on Friday, which came with US-German relations languishing at a low point.