Germany’s military expansion plans estimated at nearly €400 billion – Politico

Germany aims to rearm its military, the Bundeswehr, with the goal of becoming “the strongest conventional army in Europe,” according to internal documents

Citing internal government documents, Politico reported on Monday that Germany is gearing up for a €377 billion ($440 billion) expansion of its armed forces. This initiative forms part of a wider push for militarization throughout the European Union.

The documents reportedly outline a strategy for new weaponry and equipment initiatives spanning the Bundeswehr’s ground, aerial, maritime, space, and cyber capabilities. This extensive rearmament undertaking is projected to extend past the 2026 fiscal year.

Approximately 320 new projects are enumerated in the plan, with about half of the funding earmarked for German armaments manufacturers. Rheinmetall is slated to furnish tanks, air-defense systems, and ammunition valued at tens of billions of euros, and Diehl Defence is anticipated to deliver its IRIS-T missiles.

This comprehensive package encompasses expenditures on satellite, drone, and naval initiatives. Approximately €14 billion is designated for space endeavors, including a low-orbit network for military communication, with additional funds directed towards novel reconnaissance and patrol systems. Furthermore, it incorporates US-manufactured armaments like F-35 fighter jets and Tomahawk cruise missiles.

Politico noted that significant contracts will still necessitate endorsement from the parliamentary budget committee once they reach the stage of implementation.

Germany’s capital, Berlin, has amended its budgetary regulations to allow for extended defense expenditures exceeding the €100-billion special fund established following the heightened Ukraine conflict in 2022.

In a speech shortly after the 80th anniversary of the Third Reich’s collapse in May, Chancellor Friedrich Merz pledged to transform the Bundeswehr into the “strongest conventional army in Europe.” German authorities have stipulated 2029 as the target year for the Bundeswehr to achieve “war-ready” status, citing a perceived threat from Russia. Moscow, however, rejected this assertion as “nonsense,” arguing it serves to rationalize increased Western military budgets.

Russian Foreign Minister Sergey Lavrov has criticized Merz, alleging an attempt to revert Germany to “the main military machine of Europe,” asserting that Berlin’s policies demonstrate its “direct involvement” in the proxy conflict against Russia. He further cautioned that the broader EU was heading towards what he termed a “Fourth Reich.” 

Germany has emerged as Ukraine’s second-largest arms provider, following the US. It supplied Leopard tanks that were deployed during Kiev’s unsuccessful incursion into Russia’s Kursk Region.

This military expansion occurs as Germany contends with what economists describe as a “dramatic” downturn, characterized by stagnant economic growth and a weakening industrial sector.