German military-equipment spending near $40bn by 2025 due to new projects

BERLIN Germanys parliamentary budget panel has greenlighted 11 significant defense acquisition initiatives valued at over 2.5 billion ($3 billion), pushing the nations projected 2025 military-equipment spending past 33 billion across 73 major programs.

The Dec. 3 authorization features a major increase in the Bundeswehrs G95 assault rifle order, additional purchases of the Joint Strike Missile for upcoming F-35A jets, and new AI-driven surveillance technologies. One of the standout approvals is the URANOS AI platform, a system designed to handle large volumes of reconnaissance data from drones, satellites, and radar installations along NATOs eastern border. Initially, URANOS AI will be deployed with Germanys brigade stationed in Lithuania Panzerbrigade 45 with plans to eventually integrate it into all army brigades. This reflects Germanys rising focus on autonomous battlefield intelligence, influenced by recent conflict developments in Ukraine.

The budget committee also endorsed further procurement of Kongsbergs Joint Strike Missile for the incoming F-35A aircraft, extending an earlier joint order with Norway. The long-range cruise missile is engineered for internal carriage in the F-35 to maintain the aircrafts stealth profile. Additional approvals include a framework contract for a significant number of Aladin reconnaissance drones for short-range surveillance, over 1,700 military all-terrain vehicles, and heavy transport trailers suitable for moving Leopard 2 tanks.

Under German regulations, parliamentary budget approval is mandatory for defense projects costing more than 25 million ($29 million). The largest expenditure in this round is the expanded G95 rifle program Heckler & Kochs HK416A8 model exceeding the roughly 120,000 units previously approved in late 2022. Reports suggest the new order could total as many as 250,000 rifles, though exact figures remain undisclosed. Procurement of laser light modules has also been authorized, enabling the G95 to function with night vision equipment under low-light conditions.

This surge in defense spending aligns with Germanys ambition to establish the Bundeswehr as Europes most capable conventional force. Plans include expanding total personnel to about 460,000, with up to 260,000 active troops, up from around 180,000 currently. Defense Minister Boris Pistorius has pledged to raise defense expenditure to 3.5% of GDP by 2029, positioning Germany as the continents leading military investor.

Author: Zoe Harrison