Japan is set to increase defense spending to a fresh record next year as Prime Minister Sanae Takaichi’s government looks to respond to the challenges of heightened geopolitical tensions, US calls to shoulder more costs and a weak yen.

Japan's Cabinet has approved a record-breaking defense budget exceeding ¥9 trillion ($58 billion) for fiscal 2026, marking a 9.4% increase to bolster strike capabilities with missiles and drones. This move accelerates Japan's plan to reach 2% of GDP in military spending,

The new budget proposed that Japan procure advanced radar systems designed to track ballistic and hypersonic threats, an Aegis System Equipped Vessel, upgraded Type 03 medium-range surface-to-air missiles, SM-3 Block IIA missiles, and Patriot systems from the US to counter any Chinese air and missile attack on Japanese land.

A record defence budget and an expanding missile and drone programme mark a decisive shift for Japan, as it clears path to become the world’s third-largest military spender. View on euronews