GERMANY - Germany is reportedly considering a major new round of new defence spending as it looks to address serious equipment shortages in its armed forces. The plans include a commitment to spend an estimated €1 billion (£875 million) on new drone aircraft over the next nine years. Europe’s biggest economy currently lags far behind Nato’s agreed spending target of 2 per cent of GDP, at just 1.13 per cent last year. Mrs Merkel’s government already plans to increase its defence budget to €42.4 billion by 2021, compared €37 billion last year. But the pace of Germany’s economic growth means that on current predictions that would still only amount to 1.15 per cent of GDP.