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Germany Approves €50 Billion Arms Package

Germany’s Bundestag Budget Committee approved more than €50 billion in military procurement contracts on December 17, 2025.

December 17, 2025Clash Report

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Germany Approves €50 Billion Arms Package

The decision marks a major acceleration of Berlin’s rearmament drive as it seeks rapid readiness gains under the post-2022 Zeitenwende.

The approvals were granted in a closed-door committee session covering large-scale contracts that exceed €25 million each.

They draw on debt-brake exemptions and remaining resources from Germany’s €100 billion special defense fund.

Record-Scale Committee Approval

The Bundestag’s Budget Committee signed off on a package estimated at €50–52 billion ($59–61 billion), one of the largest single procurement approvals in post-war German history.

The package comprises roughly 30 separate contracts spanning equipment, systems, services, and upgrades for the Bundeswehr, reflecting an effort to compress years of acquisitions into a short approval window.

Under German practice, procurements above €25 million require committee approval rather than a full plenary vote.

The mechanism allows speed but concentrates scrutiny within a small group of lawmakers, a point critics raised given the scale and pace of the decisions.

Gear, Armor, And Air Defense

The largest single allocation—€21–22 billion—is earmarked for basic military gear, including personal protective equipment and uniforms, aimed at addressing long-standing shortages affecting readiness.

More than €4 billion is allocated for additional Puma infantry fighting vehicles, with some reports citing around 200 units, following earlier reliability issues and upgrades.

Air and missile defense features prominently. The committee approved €3–4 billion to expand the Arrow 3 system, developed jointly by Israel and the United States, and about €2 billion for additional Patriot air-defense systems.

Artillery investments include €3.4 billion for self-propelled howitzers, underscoring a renewed focus on high-intensity land warfare.

Space, Sensors, And Industry

Beyond platforms, the package includes €1.76 billion awarded to Rheinmetall for a satellite-based reconnaissance system intended to support German forces stationed in Lithuania.

Other contracts cover upgrades to infantry vehicles, missile systems, satellite capabilities, and preparatory steps for future drone acquisitions.

Defense industry beneficiaries were quick to note the implications. Shares in firms such as Rheinmetall and Hensoldt rose following reports of the approvals, reflecting expectations of sustained order flows and planning certainty.

Defense Minister Boris Pistorius emphasized that the “speed and amounts” provide industry with predictable demand after decades of stop-start procurement.

Strategic And Political Context

The spending surge is enabled by defense-specific exemptions to Germany’s constitutional debt brake introduced earlier in 2025, combined with remaining funds from the €100 billion special defense fund launched in 2022.

Reports indicate Berlin plans to invest up to €650 billion in defense between 2025 and 2030, roughly double previous levels, to meet or exceed NATO’s 2 percent of GDP benchmark and prepare for potential threats by 2029.

While the governing coalition broadly supports the acceleration, some opposition voices, including from the Greens, questioned whether lawmakers had sufficient time to review such a large volume of contracts.

Even so, the approvals underscore how Germany’s historical restraint has given way to rapid modernization driven by Russia’s war in Ukraine and NATO’s eastern-flank requirements.

Germany Approves €50 Billion Arms Package