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In 2020, German spent about 53 billion USD on its military, that’s rank 7 world-wide. The UK spent 59 billion, about the same ballpark. The bigger problem in Germany is inefficient spending.

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Correct, but if Germany wants to be a leader of a pan-EU army it needs to be a dominant military power in the region (for example the US globally, or Turkey in the East Mediterranean, or what Egypt/Libya used to be in the Middle East before the US decided to regime change them). Else you just get political squabbling because the various states have equal power and nothing gets done.

I'm not saying social spending is bad, just that if playing a lead role in a pan-EU army is Germany's interest then it needs to spend more.

How will more money fix the fundamental issue of inefficient spending? It will just be more money inefficiently spent.

Using absolute numbers borders on fraud. What's the %?

Why care about the %? What really matters are the capabilities, no matter the cost.

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