As soon as possible, US Defense Secretary Peter Hegseth has urged Australia to increase its military spending to 3.5% of GDP.
Prime Minister Anthony Albanese responded on Monday by saying that the government would review its defense-related needs before announcing spending.
Albanese told reporters that what you should do for your country is determine what you need and what you can do.
“My government is doing that,” my government said. investing in our relationships and our capacity.
Albanese added that his administration is already spending about 10 billion Australian dollars ($6.5 billion) on defense.
He cited his government’s pledge to increase spending to 2.3% of GDP by 2033, noting that “we’re continuing to lift up.”
However, the government’s budget is being subject to additional demands.
Albanese was speaking from a South Australian state that is in severe drought.
Meanwhile, the Treasurer of Australia claimed that recent flooding in New South Wales and Cyclone Alfred have cost the nation a billion dollars.
According to the public broadcaster ABC, increasing military spending to 3.5% of GDP would cost 100 billion Australian dollars ($65 billion) annually, or 40 billion Australian dollars ($25 billion) more than it currently spends.
According to The Australia Institute senior economist Matt Grudnoff, “Australia already spends more money on defense than it should.”
According to Grudnoff, “Australia would be the ninth-largest spender on defense and the military” if its defense spending increased to 2.3% of GDP.
He continued, “Australia would devote more of its economy to defense than France and Taiwan, and it would be on par with the United Kingdom.”
According to the Stockholm International Peace Research Institute (SIPRI), global military spending increased by 9.4 percent in 2024, marking the highest-level increase since the end of the Cold War.
In accordance with its AUKUS agreement with the US and the UK, the Australian government has already made a pledge to spend hundreds of billions of dollars on nuclear submarines made by the US.
Its estimates the program’s potential cost could be as much as $368 billion ($288).
In a meeting on Friday, Hegseth and Australian Defence Minister Richard Marles spoke about security issues, including expanding industrial base cooperation and expanding US defense capabilities in Australia, according to a Pentagon statement from Sunday.
In response to Israel’s ongoing conflict in the Gaza Strip, protests erupted outside Australian weapons factories and Australian ports, as well as legal issues.
Albanese claims that Australia’s position on Taiwan has not changed.
Following Marco Rubio’s statement to the Shangri-La Dialogue on Saturday, the US Secretary of State said “the threat China poses is real, and it could be imminent.” Hegseth is asking Australia to increase its military spending.
The Pentagon director continued, “There is no reason to embellish it.” Taiwan, which Beijing considers to be part of Chinese territory, is still the subject of US warnings.
The conference, which is regarded as the region’s top security event, was skipped by China’s Defense Minister Dong Jun.
The Chinese Ministry of Foreign Affairs responded, “The US shouldn’t play with fire or make up its mind by using the question over Taiwan as a bargaining chip to contain China.”
Albanese said Australia would “determine our defense policy” when Hegseth made the comment.
Source: Aljazeera
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