Germany walks back plan to meet NATO spending target on annual basis

BERLIN: The German government has retreated from a plan to legally commit itself to meeting NATO's 2% military spending target on an annual basis, a government source told Reuters on Wednesday.

A corresponding clause in a draft of the budget financing law passed by the cabinet of Chancellor Olaf Scholz on Wednesday was deleted at short notice, the source said.

The change means that Germany will be able to stick to its current pledge of meeting the 2% target on average over a five-year period.

NATO allies have criticised Berlin strongly in the past for not spending 2% of its gross domestic product on defence annually.

It is unclear whether Berlin will keep military spending over this threshold once a 100 billion euro ($101 billion) special fund to bring the Bundeswehr back up to standard is used up.