Germany is preparing a landmark €25 billion defense procurement aimed at transforming its armed forces and reinforcing NATO’s eastern flank, as tensions with Russia continue to mount. The plan includes massive tank and armored vehicle orders, alongside personnel expansion and deeper cooperation with European defense manufacturers.

The German government, under Defense Minister Boris Pistorius and Chancellor Friedrich Merz, is finalizing a deal to supply seven full combat brigades to NATO by 2035. This would fulfill Berlin’s pledge made during the June NATO summit in the Netherlands to meet new alliance capability goals. The equipment package under review includes

- Up to 1,000 Leopard 2 battle tanks, developed by Krauss-Maffei Wegmann and Rheinmetall, two of Germany’s premier defense contractors.

- As many as 2,500 GTK Boxer armored fighting vehicles, produced by ARTEC, a joint venture between the same firms.

The vehicles would form the backbone of new NATO brigades intended to deter any potential Russian aggression in Europe’s east.

Germany’s Largest Military Investment in Decades

The proposed order marks one of the most significant German rearmament efforts since reunification. Defense analysts say the procurement—if approved—would not only enhance NATO’s combat readiness but also position Germany as Europe’s primary land warfare power.

Rheinmetall’s stock rose by 3.7% following reports of the deal, underscoring investor confidence in Germany’s defense spending surge. Market analysts have already revised upward their forecasts for the company.

Supporting Infrastructure and Industrial Partnerships

Berlin’s rearmament isn’t limited to tanks. Earlier this year, the government received preliminary approval to acquire over 1,000 Patria Armored Modular Vehicles (AMVs) from the Finnish defense firm Patria. While the vehicle design comes from Finland, 90% of production is expected to take place in Germany, in cooperation with KDNS and Flensburger Fahrzeugbau Gesellschaft (FFG). The Patria AMVs will replace aging Fuchs vehicles and add versatility to German ground forces.

Manpower Boost: 60,000 New Troops Planned

To support the expanded force structure, Germany plans to increase the size of its active-duty military from 180,000 to 240,000–260,000 troops. This includes recruiting an additional 60,000 soldiers, a roughly 33% increase.

A six-month voluntary military service program is expected to begin in 2026. While not conscription, the program is designed to broaden the recruitment pool, with options for further specialization in logistics, armored units, and other key operational roles.

Strategic Policy Shift: Defense Spending and Debt Rules

Germany’s new center-right coalition, led by Chancellor Merz, has made defense reform a central pillar of national policy. In early 2025, the coalition, with support from the Greens, suspended constitutional borrowing limits to fund military upgrades. This fiscal shift allows unprecedented public investment in defense, reversing years of underfunding.

The move comes amid mounting pressure from NATO and the U.S. to fulfill alliance responsibilities independently, as U.S. President Donald Trump has demanded European allies shoulder more of the collective security burden.

Long-Term Vision: Europe’s Strongest Military

Chancellor Merz has repeatedly emphasized his goal of turning Germany into “Europe’s strongest army”, citing the growing threat from Russia and a shifting transatlantic relationship. The Bundeswehr's modernization is expected to include not only hardware but also new command structures, upgraded logistics networks, and enhanced cybersecurity capabilities.

While the full procurement still requires parliamentary approval, officials expect it to pass by the end of 2025.