BERLIN

German Foreign Minister Annalena Baerbock said on Monday that NATO's longstanding 2% defense spending target is no longer adequate amid growing security challenges.

"We must recognize that NATO's two percent target will no longer be sufficient in our current situation," Baerbock said during her opening speech at the SZ Economic Summit in Berlin.

She said European allies should increase their military budgets, enhance cooperation among defense industries, and develop joint projects.

"We must think big about investments in European security and make them big," the foreign minister said, adding that this approach could also strengthen ties with the US and transatlantic partners.

Germany expects to meet NATO's 2% target this year, having increased military spending significantly following Russia's war in Ukraine.

The German government significantly increased its military spending in the aftermath of the Russia-Ukraine war, and it is expected to meet NATO’s defense spending target this year. The target requires member states to allocate at least 2% of their GDP annually to defense spending.

Baerbock's remarks came as Donald Trump's election victory reignited European concerns about US commitment to NATO and European security. During his previous term, Trump said the US was shouldering an unfair burden of NATO's costs and threatened to withdraw from the alliance if other members did not increase their contributions.