Germany's Bundeswehr goes on military spending spree
January 29, 2026
Germany's military, the Bundeswehr, is currently on a spending spree: it has more than €108 billion ($129 billion) at its disposal this year — a gigantic, unprecedented sum. This is being financed both by the official federal budget and special funds, for which the state is taking out loans.
This money is intended to make the Bundeswehr, which has been subject to decades of cutbacks, more powerful and modern. There is also time pressure. German Defense Minister Boris Pistorius fears Russia could be capable of attacking NATO territory as early as 2029. What is the Bundeswehr buying with the many billions? And how well is the rapid rearmament working? Here are some notable examples.
First-ever combat drones
The Bundeswehr has long steered clear of combat drones — with political consensus in Germany generally against them. But Russia's invasion of Ukraine, in which drones have been a major factor, has led to a rethink. For the first time in its history, the Bundeswehr is ordering several thousand combat drones this year.
New technology companies are leading the competition among suppliers: the Berlin-based startup Stark Defence and Munich-based Helsing are each set to receive orders worth up to €300 million ($360 million). Prototypes from the more established competitor Rheinmetall had failed to impress Bundeswehr testers.
The drones being purchased are officially called "loitering munitions," but are more commonly called kamikaze drones or suicide drones because they dive toward their target and blow themselves up. The Bundeswehr brigade in Lithuania, which has been deployed to help protect NATO's eastern flank, is one of the detachments that will receive them.
The Bundeswehr also has some catching up to do when it comes to drone defense. A mix of different defensive weapons is intended to close these gaps. The spectrum ranges from jammers, i.e., interference transmitters, to the Skyranger 30 anti-aircraft tank, which can also combat swarms of drones.
The Skyranger, produced by Rheinmetall, is particularly eagerly awaited, as flights by suspicious drones over Germany are becoming more frequent, including over Bundeswehr compounds. However, it cannot be delivered until 2028. The Skyranger will be the main weapon system of the army's air defense force, which is currently being reorganized. This unit was disbanded in 2012 because it was no longer considered necessary at the time.
Newly developed laser weapons are also planned for drone defense, which the navy now wants to purchase. One such laser weapon, developed by Rheinmetall and fellow arms manufacturer MBDA, has already undergone testing and is now also on the Bundeswehr's shopping list.
Helicopters, fighter jets and maritime patrol aircraft
Although the Bundeswehr purchases most of its new equipment from German and European defense companies, some large orders go to US corporations. One example is the F-35A stealth bomber, considered the most advanced fighter jet in the world.
The German government has ordered 35 units from the US arms giant Lockheed Martin. The total cost of the package, including weapons and spare parts, is just under €10 billion.
One reason for this choice is that F-35s can be armed with US nuclear bombs in an emergency. This role has previously been performed by the Bundeswehr's Tornadoes, which are slated for decommission in the near future due to their age. The German F-35 fleet will thus become part of NATO's nuclear umbrella over Europe.
In addition, the Bundeswehr is purchasing 60 CH-47 Chinook heavy transport helicopters from the US aerospace company Boeing. According to the German Air Force, there is no competing product in Europe that offers the same capabilities. This will cost some €7.3 billion.
Boeing also manufactures the P-8A Poseidon maritime patrol aircraft, which can monitor large areas of ocean waters and detect submarines thanks to state-of-the-art sensor technology. The first aircraft was delivered to the German navy in the fall. According to Defense Minister Pistorius, the maritime patrol aircraft could be Germany's contribution to better surveillance of the waters around Greenland as part of a NATO mission.
AI project Uranos is breaking new ground
Artificial intelligence (AI) has become an integral part of modern weapon systems. The growing importance of AI is demonstrated by the "Uranos KI" project (KI is the German equivalent of AI), which is intended to assist the Bundeswehr brigade in Lithuania.
On NATO's eastern flank, large areas need to be monitored closely, and this is where AI comes into play. It is intended to help analyze large amounts of data collected by various sensors. This could, for example, make it easier to detect enemy drones. The Defense Ministry is keeping the details of the project secret — for good reason.
Frigate F126: From prestige project to major problem
The case of the F126 frigate shows that not all expensive large-scale projects run smoothly. While the design for the navy's largest combat ship was initially celebrated with great enthusiasm, disillusionment quickly set in during construction: the main contractor, the Dutch shipyard Damen Naval, failed to carry out the project to completion.
According to media reports, around €1.8 billion ($2.2 billion) has already been invested in the F126 and no ships have appeared. Opposition politicians fear the project could become a "billion-dollar white elephant."
Now, the German firm Naval Vessels Lürssen is to take over the contract and salvage what can still be salvaged. However, because the navy urgently needs new frigates due to its NATO commitments, a temporary solution is being planned: the Bundeswehr wants to purchase additional MEKO A-200 frigates from TKMS, Germany's largest naval shipbuilder.
Since this model has already been built for export, the plans are ready. But this "temporary solution" naturally comes at an extra cost — the Bundestag already approved an additional €7.8 billion for last year.
New uniforms
At the end of last year, the Bundestag also approved a large sum for new uniforms and personal equipment for a total of 460,000 soldiers. Critics have questioned whether this amount was excessive. After all, the Bundeswehr currently only has 184,000 active duty soldiers. But it is set to grow significantly to 460,000 men and women, including reservists.
That may take years, but there would then be enough combat uniforms to go around. When the new soldiers start their service, "we can't just put them in jogging suits as a stopgap," explained Pistorius.
This article was originally written in German.
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