Germany’s finance minister has vowed to lift the country’s defense spending to 3.5% of gross domestic product in 2029.

In total, Germany plans to spend €649 billion ($761 billion) on the military over the coming five years. It marks a continuation of a historic shift that began with Russia’s invasion of Ukraine and led to Berlin loosening the purse strings and overhauling its approach to military might.

Germany will raise defence spending to 3.5% of economic output by 2029 funded through a nearly 400 billion euro borrowing programme, sources said on Monday, as Chancellor Friedrich Merz aims to send a strong signal ahead of this week's NATO summit.