Germany Announces $1.7 B Strategic Gas Reserve and Accelerates 5% Defense‑Spending Target

Germany will create a state‑run strategic natural‑gas reserve for emergencies, with an estimated cost of up to €1.5 billion ($1.7 billion). Funding will come from a special fee on gas consumers, and gas purchases for the reserve will be spread over two to three years to avoid price impacts. The first pipeline to the storage facilities is planned for summer 2027, and the reserve will hold roughly 10 % of Germany’s total gas‑storage capacity. The move follows low storage levels after a harsh winter, high LNG spot prices, and reduced Middle‑East supplies, with the United States now supplying most of Germany’s LNG.

Separately, Germany says it will meet NATO’s 5 % of GDP defence‑spending target earlier than expected. Chancellor Friedrich Merz (speaking after the NATO summit in Ankara) called the meeting a “turning point” for the alliance, noting Europe’s willingness to shoulder a larger share of the burden and stressing the need for a more European‑focused NATO. He also praised U.S. President Donald Trump for his engagement at the summit.