Defense Policy and Budgeting

Germany boosts defense budget and modernization in response to geopolitical threats.

Germany has unveiled a historic defense budget for 2025, allocating over €86 billion, which includes a €24 billion special fund aimed at meeting NATO’s 3.5% GDP defense spending target by 2029. The budget reflects a substantial increase from previous expenditures, with plans to invest approximately €377 billion in military modernization and acquisitions, including enhancing air defense and cyber capabilities, and procuring around 400 cruise missiles. This strategic pivot, driven by Russia’s aggression in Ukraine, signifies Germany’s commitment to bolstering its national defense while supporting NATO allies. Additionally, the introduction of voluntary military service aims to strengthen personnel numbers, marking a significant shift in Germany’s defense posture and reinforcing its role as a key security player in Europe amidst evolving geopolitical challenges.

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