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Reflecto News | Breaking News | European Security
BERLIN — German Chancellor Friedrich Merz declared on Wednesday that the recent war with Iran and the broader deterioration of global security over the past year underscore the urgent need for Germany to accelerate investments in its military, stating plainly that “we want to be able to defend ourselves.”
The Chancellor’s remarks, made in Berlin, reaffirmed his government’s commitment to the massive defense spending increases announced after Russia’s invasion of Ukraine, while adding a new urgency driven by the conflict in the Middle East.
“The developments over the past year — not least in Iran in recent months — show how important investments in our defense capability are. We want to be able to defend ourselves.”
— Chancellor Friedrich Merz, Germany
📈 ‘Massive, Unprecedented’ Defense Budget
Since taking office in 2025, Merz has overseen the most dramatic military expansion in Germany since the Cold War.
- €100 Billion Special Fund: His government finished deploying the special “Bundeswehr Special Fund” (Sondervermögen) approved after Russia’s invasion of Ukraine.
- 2% GDP Target: Merz has committed to reaching the NATO target of spending 2% of GDP on defense in 2026. According to SIPRI data for 2025, Germany’s military spending increased by 24% to $114 billion (approx. €100 billion), representing 3.9% of its GDP.
- The Zeitenwende: Merz has sustained the policy of “Zeitenwende” (historic turning point), increasing Germany’s role in NATO’s eastern flank.
The Chancellor has also advocated for deeper European defense integration, including joint air defense projects like the European Sky Shield Initiative (ESSI) .
🚢 The Iran Wake-Up Call
Merz’s speech highlighted that the Iran war has taught Berlin a specific lesson: Europe cannot rely on the US to defend its economic interests without cost.
- Strait Vulnerability: The fact that Iran could effectively close the Strait of Hormuz, cutting off energy supplies to Europe, shows the vulnerability of free trade and energy security.
- US Retrenchment: With President Trump publicly questioning US commitment to NATO, Merz is pushing Berlin to become the “backbone” of European conventional defense.
- Economic Security: The economic chaos caused by the Hormuz closure has directly impacted German industrial output, leading Merz to believe that defense capability is now central to economic security.
Ironically, despite advocating for military strength, Merz remains a vocal critic of how the Iran war began. He has stated he had “doubts from the very beginning” about the US-Israeli strikes, demonstrating his view that Europe must build its own defense capacity because it might not agree with future US military adventures .
⚡ What Comes Next
- Bundeswehr Reform: Merz has tasked Defense Minister Boris Pistorius with reforming military procurement to speed up delivery of weapons systems.
- Strategic Autonomy: The Chancellor is likely to push for increased European defense industrial cooperation to reduce reliance on US supply chains.
As Merz put it on Wednesday, “We want to be able to defend ourselves.” The Iran war has simply provided the most recent justification for a buildup that began with Russia’s invasion of Ukraine in 2022 .
📋 Key Takeaways for Reflecto News Readers
| Aspect | Summary |
|---|---|
| Merz’s Statement | “Developments… not least in Iran… show how important investments in our defense capability are. We want to be able to defend ourselves.” |
| Defense Budget Context | Germany spending 3.9% of GDP ($114B) in 2025; €100B special fund deployed |
| Iran Lesson | Closure of Strait of Hormuz shows Europe vulnerable to energy/extortion |
| US Relations | Europe must defend itself as US commitment under Trump is uncertain |
| Irony | Merz critical of how the war started, but supports using it to justify German rearmament |
| Next Steps | Procurement reform; deeper EU defense integration (Sky Shield) |
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