Germany Launches €350B Plan to Modernize Bundeswehr

Germany unveils a €350B defense plan to modernize the Bundeswehr with major investments in munitions, vehicles, naval assets, aircraft, and communication equipments.

After restrictions on the federal budget and borrowing law were lifted earlier this year, the Germany Ministry of Defense presented a new procurement program. The plan supports Chancellor Friedrich Merz’s pledge to make the Bundeswehr the strongest conventional military power in Europe.

On Monday, the 2026 federal budget draft was submitted to the German Parliament. Along with it, the Defense Ministry’s planners introduced a 15-year procurement plan. Under this framework, Germany will spend about 350 billion euros ($409 billion) on modernization and new armament programs by 2041.

In the 2025 budget, about 8.2 billion euros will be allocated for military acquisitions. This amount will rise to 22.3 billion euros the following year, according to the draft.

The procurement plan also includes long-term commitments running from 2027 to 2041. These commitments, worth around 325 billion euros, allow the Defense Ministry to sign new contracts for equipment procurement and modernization for the Heer, Luftwaffe, and Marine. Together with the 2025 and 2026 budgets, the total reaches about 355 billion euros ($415 billion).

Parliamentary approval is still required for these commitments. Once approved, they will serve as the financial foundation for future acquisitions. Defense officials noted that additional projects could be added if needed. From next year onward, the ministry will be authorized to sign long-term contracts for major programs.

According to defense officials, the long-term procurement program aims to rebuild and modernize the Bundeswehr after decades of underinvestment. Spending will be divided into eight main categories:

• €70.3 billion ($82.2 billion) for munitions
• €52.5 billion ($61.3 billion) for combat vehicles and tanks
• €36.6 billion ($42.7 billion) for naval vessels and equipments
• €34.2 billion ($40 billion) for aircraft and missiles
• €20.9 billion ($24.4 billion) for field and logistics materials
• €20.8 billion ($24.3 billion) for vehicles and accessories
• €15.9 billion ($18.6 billion) for communications equipments
• €13.3 billion ($15.5 billion) for satellite-based communications equipments

A Defense Ministry spokesperson confirmed that financing from the Bundeswehr’s special defense fund will continue until 2027. By the end of May, 28 billion euros from the fund had already been spent. Planned allocations from this fund include 24 billion euros in 2025, 25.5 billion euros in 2026, and 27.4 billion euros in 2027, the final year of the special appropriation.