Germany intends to dramatically strengthen its army in the coming decades. The country's Defense Ministry has unveiled a large-scale arms and equipment procurement plan worth more than 350 billion euros (about 409 billion US dollars), calculated until 2041. This initiative is part of Chancellor Friedrich Merz's strategic course to transform the Bundeswehr into the most powerful conventional military force in Europe.
Budget 2026: a sharp increase in funding
On Monday, the draft federal budget for 2026 was presented to Parliament. It provides 8.2 billion euros ($9.6 billion) for military procurement. However, in 2026, the volume of allocations will increase sharply to 22.3 billion euros, which will signal the beginning of an active phase of modernization.
Long-term commitments: "Verpflichtungsermächtigungen" until 2041
A key element of the plan is the so—called "Verpflichtungsermächtigungen" - permits to fulfill long-term financial obligations. These obligations, estimated at about 325 billion euros, are valid from 2027 to 2041. They allow the Ministry of Defense to conclude contracts for the supply of large systems right now, even if their actual payment and delivery will take place in the future.
Such a mechanism gives the industry confidence in stable orders and allows it to plan production taking into account long-term cycles of development and assembly of complex military platforms.
What will be purchased?
The funds will be used to upgrade all branches of the Bundeswehr.:
Ground Forces — new tanks, infantry fighting vehicles, artillery systems
Air Force - fighters, drones, air defense systems
Naval forces — ships, submarines, naval aviation
Special attention will be paid to digitalization, network-centric technologies and integration with NATO, which will increase compatibility with the allied armies.
Strategic context
This ambitious plan is a response to the changed geopolitical situation. The strengthening of the German army is seen as a necessary step to ensure Europe's security, especially against the backdrop of growing threats from Russia and instability on the southern and eastern borders of the EU.
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