BERLIN – The German government has unveiled an unprecedented, long-term defense procurement plan totaling approximately €355 billion (USD $415 billion) through the year 2041. This monumental initiative is the tangible manifestation of Chancellor Friedrich Merz's commitment to rebuilding the German Armed Forces (Bundeswehr) with the goal of establishing it as the most powerful and well-equipped conventional military in Europe.
This plan represents not only a fundamental shift in Germany's security policy but is also set to reshape the entire defense landscape of Europe for decades to come.
A Detailed Breakdown of the Defense Budget
The draft 2026 federal budget, presented to parliament, outlines a multi-layered and complex financial roadmap to ensure the sustainable modernization of the military.
- Annual Budget: The allocation for military procurement is set to soar from €8.2 billion ($9.6 billion) in 2025 to €22.3 billion ($26 billion) in 2026.
- Long-Term Commitment Authorizations (Verpflichtungsermächtigungen): This is the cornerstone of the plan. The government is proposing commitment authorizations worth approximately €325 billion ($379 billion) for the period between 2027 and 2041. This mechanism allows the Ministry of Defence to sign large-scale, long-term contracts for major systems (tanks, warships, aircraft) immediately, locking in supply chains and stable pricing for projects that will span many years.
- The €100 Billion Special Fund (Sondervermögen): In addition to the above figures, funding from the previously established special defense fund will continue to be disbursed until 2027. Planned expenditures from this fund are €24 billion in 2025, €25.5 billion in 2026, and €27.4 billion in 2027.
When all funding sources are combined, the total financial commitment to modernizing Germany's military represents a staggering figure and a firm political resolve.
"Comprehensive Modernization": Key Procurement Categories
The draft budget details the priority investment categories for the long term, revealing a comprehensive modernization effort across all branches of the armed forces:
- Ammunition: €70.3 billion ($82.2 billion) - This is the largest single allocation, reflecting a crucial lesson from the war in Ukraine regarding severe ammunition shortages and signaling a shift toward high-intensity combat readiness.
- Combat Vehicles (Tanks, Armored Vehicles): €52.5 billion ($61.3 billion)
- Naval Vessels and Equipment: €36.6 billion ($42.7 billion)
- Aircraft and Missiles: €34.2 billion ($40 billion)
- Logistics and Battlefield Supplies: €20.9 billion ($24.4 billion)
- Vehicles and Accessories: €20.8 billion ($24.3 billion)
- Communications Equipment: €15.9 billion ($18.6 billion)
- Satellite Communications: €13.3 billion ($15.5 billion)
The peak spending years are projected to be 2029 and 2030, with over €52 billion ($60.7 billion) allocated annually, indicating the high point for the production and delivery of these major weapons systems.
The Political Context and Chancellor Merz's Vision
This ambitious plan is the clearest expression of Germany's "Zeitenwende" – a historic turning point in its foreign and security policy following recent geopolitical shifts in Europe. After decades of underinvestment since the end of the Cold War, Berlin is now determined to assume a leading security role on the continent.
Chancellor Friedrich Merz has repeatedly emphasized that Germany's economic strength must be matched by a corresponding responsibility for security. This plan aims to turn that rhetoric into reality, ensuring the Bundeswehr has the resources to defend the nation's territory and fulfill its commitments within the NATO alliance.
Challenges Ahead and the Impact on Europe
Although the government has outlined the plan, the most significant hurdle remains: approval by the German parliament, the Bundestag. Lawmakers will be asked to approve not only the short-term budget but also financial commitments that will bind future governments until the 2040s—a decision of historic proportions.
If passed, this framework will:
- Make Germany one of NATO's top military spenders, meeting and exceeding the commitment to spend 2% of GDP on defense.
- Reshape the European defense industry, creating massive orders for major contractors.
- Solidify Germany's role as an indispensable security pillar in Europe, reducing the continent's reliance on the United States.
This plan is more than a shopping list; it is a declaration of Germany's new position on the world stage in the 21st century.
