German Defense Minister Boris Pistorius says 2% defense spending is just the beginning

However, Boris Pistorius, Germany's federal defense minister, stressed that the 2% spending was always designed to be the minimum.

“2% can only be the beginning. We may need more in the coming years,” Pistorius said at a CNBC-moderated panel at the Munich Security Conference.

The comments come after former US President Donald Trump said last weekend that he would “encourage” Russia to “do whatever they want” to NATO members who do not meet the alliance's defense spending guidelines.

In 2006, NATO member states Committed to spending At least 2% of the Alliance's GDP is on defense “to further ensure the Alliance's military readiness.” This year, 18 of NATO's 31 members are expected to reach this target, compared to just three in 2014.

Pistorius cited rising geopolitical tensions around the world, including in Europe, the Indo-Pacific region and Africa, as a reason he expects defense spending to increase.

“We need to pay more attention, on the one hand, to what's happening in the world, because everyone has to engage there. The United States, NATO, the European Union and others,” he said.

“At the same time, we have to achieve… more in Europe because others, like the United States for example, may turn their attention more to the Indo-Pacific region and… not do as much as before in Europe. So anyway “Now, we are facing a challenge and we have to accept it.”

When asked by CNBC's Silvia Amaro if a 4% spending target was reasonable, Pistorius declined to confirm the number, arguing instead that it was a matter of spending what was needed, along with financing defense industry development.

He added: “We may reach 3% or perhaps even 3.5%. This depends on what is happening in the world.”