German defence spending as a percentage of its economic output will rise in 2019 but fall after that, a government source said on Friday - a development certain to anger U.S. President Donald Trump who wants NATO allies to have bigger military budgets.
NATO-member Germany has been raising its defence budget, which will see its spending quota rise to 1.3 percent next year, the source said. After that it will fall as long as budget agreements remain the same and current economic forecasts prove true, the source said.
That means it will be well below the 2 percent quota demanded by the military alliance.
The figures could add another layer of complication to talks between Chancellor Angela Merkel and Trump on Friday in Washington. The two leaders also differ on trade and a multinational nuclear deal with Iran.