Germany plans $439 billion military expansion to build Europe's top army

Germany is preparing for a historic €377 billion ($439 billion) military modernization program as part of Chancellor Friedrich Merz's initiative to build "the strongest conventional army in Europe." The massive procurement plan, detailed in internal government documents, outlines comprehensive weapons acquisitions across all military domains scheduled to begin in 2026.

Major Contracts for German Defense Industry

According to reports, approximately half of the substantial contract volume—€182 billion—will be awarded to German companies. Defense giant Rheinmetall emerges as the primary beneficiary, positioned to receive €32 billion in direct contracts with an additional €56 billion flowing to its subsidiaries and joint ventures. This strategic emphasis on domestic defense manufacturing signals a significant boost to Germany's industrial base and military self-sufficiency.

Land and Air Defense Systems

The Bundeswehr's procurement list includes 687 Puma infantry fighting vehicles, with 662 designated for combat operations and 25 for training, all scheduled for delivery by 2035. The German military also plans to acquire 561 Skyranger 30 mobile air defense systems capable of countering drone threats, along with a dozen Luna NG reconnaissance drones valued at approximately €1.6 billion. Missile manufacturer Diehl Defense stands to gain €17.3 billion across 21 contracts, primarily for its Iris-T air defense systems.

Space and Naval Capabilities

The German military expansion includes significant investment in space-based assets, with over €14 billion allocated for geostationary communications satellites, modernized ground stations, and satellite constellations in low-Earth orbit. Naval enhancements feature four maritime drones valued at €675 million, while the air component will see additions of F-35 fighter jets from Lockheed Martin and Boeing P-8A Poseidon maritime patrol aircraft. The comprehensive modernization represents Germany's most substantial military investment since the Cold War, fundamentally reshaping European security architecture.