Germany Unveils $409B Defense Procurement Plan

Germany Unveils $409B Defense Procurement Plan

Germany’s Defense Ministry has outlined procurement plans worth more than €350 billion ($409 billion) through 2041, reflecting Chancellor Friedrich Merz’s pledge to make the Bundeswehr Europe’s strongest conventional military force.

According to the draft of the 2026 federal budget submitted to parliament on Monday, defense planners have mapped out a multi-decade framework for new weapons, vehicles, and systems. The budget provides €8.2 billion ($9.6 billion) for military acquisitions in 2025, rising sharply to €22.3 billion ($26 billion) in 2026.

Beyond those figures, the plan introduces long-term commitments known as “Verpflichtungsermächtigungen,” or commitment authorizations, running from 2027 through 2041. These commitments—valued at roughly €325 billion—allow the Defense Ministry to sign contracts for major systems such as tanks, ships, and aircraft that will be delivered in later years. Combined with the 2025 and 2026 budgets, the total reaches approximately €355 billion ($415 billion).

In addition, funding from the Bundeswehr’s special defense fund continues through 2027. Planned spending includes €24 billion in 2025, €25.5 billion in 2026, and €27.4 billion in 2027, the final year of the special allocation. A ministry spokeswoman confirmed that by the end of May, €28 billion had already been spent from the fund.

The commitment authorizations, which still require parliamentary approval, effectively set a financial baseline for future procurement. Defense officials noted that additional projects could be added if required. These commitments are intended to give the ministry the ability to sign long-term contracts for major programs starting next year.

The draft breaks down future commitments across key categories:

€15.9 billion ($18.6 billion) for communications equipment
€20.8 billion ($24.3 billion) for vehicles and accessories
€52.5 billion ($61.3 billion) for combat vehicles
€70.3 billion ($82.2 billion) for munitions
€20.9 billion ($24.4 billion) for field and logistics material
€36.6 billion ($42.7 billion) for naval vessels and equipment
€34.2 billion ($40 billion) for aircraft and missiles
€13.3 billion ($15.5 billion) for satellite-based communications
The largest annual tranches of over €52 billion ($60.7 billion) are scheduled for 2029 and 2030.

Defense leaders in Berlin say the plan reflects Germany’s effort to rebuild and modernize the Bundeswehr after decades of underinvestment. Chancellor Merz has declared that Germany will assume a leading role in European defense, with resources focused on making the armed forces fully combat-ready and technologically advanced.

While the scope of the plan is unprecedented in modern German history, parliamentary approval remains the next hurdle. Lawmakers will be asked not only to authorize near-term spending but also to commit the government to multi-year defense investments that extend well into the 2040s.

If passed, the framework would position Germany as one of NATO’s top military spenders and reshape Europe’s defense landscape for the coming decades.

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