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How Germany's Bundeswehr could spend billions of euros

March 26, 2025

Germany has paved the way a massive increase in defense spending. What does the Bundeswehr need most urgently?

CDU leader Friedrich Merz in the cockpit of an air force Eurofighter
Chancellor-hopeful Friedrich Merz from the conservative CDU has vowed to invest 'whatever it takes' into Germany's defenseImage: Bernd Wüstneck/dpa/picture alliance

The center-right and center-left parties seeking to form Germany's new government have said they will invest "whatever it takes" in Germany's defenses. That could include modernizing the Bundeswehr on a massive scale. But what would that mean in detail?

Infrastructure

The Bundeswehr owns around 1,500 properties across Germany, but many of these are in "a disastrous state," Eva Högl, the Parliamentary Commissioner for the Armed Forces, wrote in her annual report for 2024.

The Südpfalz barracks in Germersheim, for example, had mold in the soldiers' quarters, with "water damage and plaster peeling off the walls everywhere," she said following a visit there. In total, an estimated at €67 billion ($72 billion) would be needed to renovate all barracks in the country.

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Personnel

Personnel shortage is one of the German military's biggest concerns. It currently has around 182,000 soldiers in its ranks. The Defense Ministry's target is 203,000, but recruitment is clearly a problem,

The number of applications increased significantly in 2024. However, some one in four new recruits left the Bundeswehr again within only six months.

The reintroduction of compulsory military service, which was suspended in 2011, is also currently being discussed, but this would entail considerable costs, as the Bundeswehr lacks sufficient infrastructure for housing and training conscripts.

Weapons systems

Some of the Bundeswehr's equipment is outdated. Since the end of the Cold War, only the essentials have been procured, and much material had simply been patched up until the spare parts ran out.

This has changed since the Bundeswehr was provided with a special fund of €100 billion following the Russian invasion of Ukraine in 2022. This money is being used to plug the biggest holes, but the Bundeswehr is still a long way from being fully equipped.

The air force is currently receiving 35 F-35 fighter jets from US manufacturer Lockheed Martin to replace the outdated Tornado fighter jets from the 1980s. This alone will cost more than €8 billion. The government is also in the middle of buying 60 new Boeing CH-47 heavy transport helicopters.

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Meanwhile, the navy is to receive additional frigates, submarines, and P8 Poseidon maritime reconnaissance aircraft, and the army is expected to introduce the world's most modern main battle tank, the Leopard 2A8, this summer. The old Marder infantry fighting vehicle will be replaced by the modern Puma.

There is also an urgent need for action in air defense — something the Bundeswehr has severely neglected in the past. A combination of several interception systems, including Patriot and IRIS-T, is to protect Germany from air attacks in the future.

Some of the equipment has already been delivered, but the Bundeswehr will have to wait years for everything to arrive.

"It will take seven to eight years for submarines, six years for frigates, 2.5 years for tanks and the same for self-propelled howitzers," Defense Minister Boris Pistorius said recently.

Combat drones

The Bundeswehr operates a number of different reconnaissance drones. Its five Heron TP drones, which are the size of a small aircraft, can be armed.

But the Bundeswehr lacks combat drones, as there are no guidelines and regulations for their employment. Drone technology is developing at a rapid pace. The planning and procurement processes in the Bundeswehr are excruciatingly slow and often take several years.

The Bundeswehr also lacks effective defense systems against drone attacks. Espionage drones have been sighted over Bundeswehr bases recently, so this matter is seen as particularly urgent.

Ammunition

The Bundeswehr has only a relatively small stock of ammunition. After the end of the Cold War, stocks were reduced and production capacities cut. Not only that, the Bundeswehr has transferred a large part of its stocks to Ukraine in the past few years, including 427,000 rounds of artillery ammunition, in the standard 155-millimeter caliber.

The Ukrainian army consumes immense quantities of ammunition on the battlefield, and the German military now wants to stockpile more for itself, ordering artillery ammunition worth around €8.5 billion from the arms manufacturer Rheinmetall.

This is the largest order in the company's history, and while the German armaments industry is trying to ramp up its capacities in general, it can't do so overnight.

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Digital transformation

The Bundeswehr is also lagging behind when it comes to digitalization. Many officers still find themselves filling out printed forms, and cyber defense urgently needs to be strengthened. In 2024, the Cyber and Information Space Command (CIR) was upgraded to a fourth branch of the armed forces, alongside the army, air force and navy.

"Hybrid attacks are a reality, every day," Bundeswehr Inspector General Carsten Breuer warned recently. Part of the additional billions will therefore flow into digitalization, including AI applications, new data centers and secure satellite communication.

Lithuania brigade

One of Defense Minister Pistorius' most ambitious projects is to set up a Bundeswehr brigade in Lithuania. Almost 5,000 German soldiers are to be permanently deployed to the Baltic country by 2027, in order to strengthen NATO's eastern flank. This mission is a first for the Bundeswehr. The extra billions will secure this deployment and other German commitments in NATO.

This article was originally written in German.

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