As German Chancellor Angela Merkel heads to a summit with President Barack Obama and fellow NATO leaders starting Friday in Warsaw, her government’s choices show gains in defense and homeland security spending trail other policy areas. The leader of Europe’s biggest economy said Thursday that Germany spends 1.2 percent of gross domestic product on defense, short of the North Atlantic Treaty Organization’s 2 percent target. Even with defense spending set to increase in the years ahead, Merkel told parliament that Germany has its work cut out to meet the goal.

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