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

Germany's cabinet approved on Tuesday a draft budget for 2025 and a budget framework for 2026 with record investments that will also double the amount spent on interest payments by 2029. To stimulate growth after Europe's biggest economy failed to grow for two consecutive years,

Germany has said it supports a higher defense spending target even though this could leave Europe's largest economy in fiscal hot water.