Germany is preparing its biggest military expansion in decades, with plans to borrow a record €800 billion by 2030 to strengthen its armed forces, modernise infrastructure, and continue support for Ukraine. The move comes amid growing tensions with Russia, renewed NATO pressure to boost defence spending, and concerns over the future of U.S. security commitments to Europe.

Germany reforms its debt brake as Europe mobilizes €800B for defense through the ReArm Europe initiative, rattling Bund yields and risk assets globally.

The finance minister highlighted Berlin’s big expansion in military expenditure ahead of a meeting of NATO leaders in Ankara.