Germany's investments in defence in the wake of Russia's invasion of Ukraine will transform it into the biggest contributor to NATO in Europe, Chancellor Olaf Scholz said on Tuesday.

Alongside the United States, Germany is "certainly making the largest contribution" to NATO, Scholz said in an interview with the ARD broadcaster.

Speaking at the close of a summit of leaders from the Group of Seven rich democracies, Scholz said Germany was in the process of creating "the largest conventional army within the NATO framework in Europe".

Days after Russia invaded Ukraine in February, Scholz announced a 100-billion-euro ($105-billion) fund to beef up Germany's military defences and offset decades of chronic underfunding.

He also promised to meet NATO's target of spending two percent of GDP on defence, answering years of criticism from close allies that Berlin was failing to contribute enough to the alliance.

Russia's invasion had led to a renewed conviction "that we should spend more money on defence", Scholz said.

"We will spend an average of around 70 to 80 billion euros a year on defence over the next few years," he said, meaning "Germany is the country that invests the most in this".

Scholz's announcement in February was seen as a major policy shift, upending Germany's traditionally cautious approach to defence as a result of its post-war guilt.

Germany had steadily reduced the size of its army since the end of the Cold War from around 500,000 at the time of reunification in 1990 to just 200,000.

NATO allies are from Tuesday gathering in Madrid for a summit, where the United States is expected to announce new long-term military deployments across Europe.

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US to announce 'long-term' military reinforcements in Europe: official
Madrid (AFP) June 28, 2022
The United States will announce new long-term military deployments across Europe in response to the threat from Russia while at the NATO summit in Madrid, a US official said Tuesday. National Security Advisor Jake Sullivan said there would be "specific announcements tomorrow on land, sea and air of additional force posture commitments over the long term". The forces will be focused on the Baltics, Balkans and NATO's eastern flank bordering Russia, he said. NATO as a whole will announce a "hi ... read more