By: Amb. Gurjit Singh
On 6 June 2025, Chancellor Friedrich Merz in Washington, passed what some analysts are calling the “Trump Test” with unexpected ease. Though he and Donald Trump differ in their geopolitical views—particularly on Russia and China—they found common ground on an issue that has long irked the U.S. President: Germany’s military spending.
In a characteristically provocative aside, Trump mused aloud whether Germany’s increased defense investments were perhaps too successful: “I think that’s a good thing, at least to a certain point,” he said. “There will be a point when I say, please don’t arm anymore.” What was once a point of contention is now a point of pride. For the first time since reunification, Germany’s defense policy is being watched not for its hesitation, but for its ambition.
Germany’s Defense Awakening
Berlin’s military spending surged to $88.5 billion in 2024, making Germany the world’s fourth-largest defense spender and the largest in Central and Western Europe.
After years of underinvestment and political caution, Germany now allocates 1.9% of its GDP to defense, just short of NATO’s 2% target. This marks a 28% increase from 2023 and an 89% leap since 2015, according to the Stockholm International Peace Research Institute (SIPRI).
This military renaissance is not merely a response to shifting NATO expectations or American pressure. It is a structural transformation backed by a €100 billion special defense fund, constitutionally enshrined after Russia’s full-scale invasion of Ukraine jolted Germany’s strategic calculus.
What Is Germany Acquiring?
Air & Missile Defense: From Hesitation to High-Tech
Among the most significant acquisitions is the Israeli Arrow 3 missile defense system, purchased for approximately €4 billion. Designed to intercept ballistic missiles at high altitudes, Arrow 3 dramatically enhances Germany’s deterrence posture and its contribution to NATO’s integrated air defense.
In addition to replenishing stocks supplied to Ukraine, Berlin is procuring several hundred Stinger MANPADS (man-portable air defense systems) at a cost of €395 million. These portable missile systems play a key role in decentralized battlefield air defense.
Land Forces: Mobility & Modernisation
Germany is also investing heavily in its ground forces, with acquisitions that underscore a pivot toward mobility, survivability, and networked warfare. This includes:
- 123 Leopard 2A8 main battle tanks, featuring upgraded protection and situational awareness systems, with deliveries planned from 2027 to 2030.
- 123 Boxer armoured fighting vehicles (sWaTrg Inf variant), with the first 20 arriving in 2025.
- 227 BvS10 all-terrain vehicles, jointly procured with Sweden and the UK for arctic and rugged operations.
- A new fleet of up to 6,500 unprotected military transport trucks, with an initial order worth €313 million.
Also notable is the acquisition of 127 PackBot 525 unmanned ground vehicles from Teledyne FLIR Defense. These robots handle surveillance, bomb disposal, and hazardous environment missions, highlighting the Bundeswehr’s interest in battlefield automation.
Naval & Underwater Capabilities
Germany’s maritime capabilities are receiving a significant boost with:
- Three Type 424 SIGINT vessels, modern signals intelligence ships designed for enhanced surveillance.
- A €4.7 billion deal for four advanced submarines from ThyssenKrupp Marine Systems.
- Four Autonomous Underwater Vehicles (AUVs) costing €52.5 million for mine detection and underwater reconnaissance.
These investments not only reinforce Germany’s Baltic and North Sea posture but also integrate seamlessly with NATO’s naval strategy.
Aerial Modernisation: From Drones To Brimstones
The Luftwaffe is not being left behind. Germany has approved the procurement of Brimstone missiles to enhance the Eurofighter Typhoon’s precision ground-attack capabilities. In parallel, drone and loitering munition programmes are progressing rapidly:
- Plans are underway to acquire 147 fixed-wing UAVs, with an option to expand to 600, for intelligence, surveillance, and reconnaissance purposes.
- AI-enabled loitering munitions such as the Helsing HX-2 and STARK OWE-V are being developed for precision strike operations.
These additions reflect Germany’s desire to operate across the full spectrum of aerial warfare, including unmanned and autonomous systems.
Communications, Satellites & Cyber Capabilities
A modern military must be digitally connected. Germany is investing heavily in communications, encryption, and space systems, including:
- A €1.9 billion investment in a Tactical Wide Area Network (TaWAN LBO) for secure land communications.
- 1,350 multi-cryptophones to secure command-level communications.
- Over 9,000 GPS M-Code receiver cards for encrypted and accurate positioning.
Spectra Aerospace & Defense recently acquired Galleon Embedded Computing GmbH in Munich, strengthening Germany’s capabilities in embedded defense computing. Meanwhile, Hensoldt, Germany’s leading sensor maker, acquired ESG, a specialist in defense logistics and systems integration for platforms like the F-35 and P-8 Poseidon.
Soldier Systems: From Kit To Connectivity
Germany is also investing in the effectiveness and safety of its soldiers. The Infantry of the Future (IdZ) system is receiving nearly €418 million, supporting integrated battlefield management, protective gear, and modernized weapons.
Additional procurements include:
- 60,000 tactical communication sets with hearing protection, with an option for 131,000 more.
- Investments in medical response systems, including three medical trains based on Germany’s high-speed ICE model.
- New airfield firefighting vehicles, due between 2026 and 2029.
A Long-Term Defense Architecture
What sets this transformation apart is its permanence. The €100 billion defense fund is constitutionally protected, shielding it from annual budget wrangling and ensuring continuity for long-term projects.
Major beneficiaries include:
- The purchase of F-35 fighter jets from the U.S. to replace aging Tornado aircraft.
- Investment in Eurofighter upgrades, new helicopter fleets, and submarine contracts.
- Comprehensive procurement of digital, cyber, and reconnaissance platforms.
- Stockpiling of ammunition, modern artillery systems, and improved infrastructure.
At the same time, Germany’s regular annual defense budget is rising steadily, aiming to sustain these gains beyond the special fund’s scope.
The Road Ahead
Germany’s military transformation is more than a budgetary uptick—it is a recalibration of its postwar identity.
While rooted in NATO obligations and shaped by Russia’s aggression, it also reflects a growing strategic self-awareness. The Merz government has signalled that Berlin will no longer outsource its security—or its credibility.
However, challenges remain. Public support for military expansion is cautious, procurement delays persist, and coordination with European partners on shared platforms, such as the Future Combat Air System (FCAS), is far from smooth.
Nonetheless, Germany has taken the first irrevocable steps toward becoming a “framework nation” in European defense—not just economically, but militarily.
In Trump’s ironic approval lies a curious vindication: Berlin has finally arrived at a point where even its former critics are perhaps asking it to slow down even before it has achieved full speed.
- Gurjit Singh is a former Ambassador to Germany, Indonesia, Ethiopia, ASEAN, and the African Union Chair, CII Task Force on Trilateral Cooperation in Africa, Professor, IIT Indore.
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