As Europe works toward achieving greater strategic autonomy, Germany has begun modernizing and expanding its military on a scale not seen in decades. This marks a significant shift. Since the Second World War, Germany has generally maintained a restrained military posture, shaped by its historical experience, political culture, and reliance on NATO. Until recently, German defense policy was based on the assumption that Europe’s security environment had entered an era in which diplomacy and economic integration mattered more than military power. However, Russia’s invasion of Ukraine in 2022, coupled with growing uncertainty about long-term U.S. security commitments, has fundamentally altered this outlook.
In his Zeitenwende speech following Russia’s invasion, Chancellor Olaf Scholz described the moment as a historic turning point and announced a fundamental reorientation of German foreign and security policy. Germany recognized that its defense capabilities and industrial base were inadequate for an era defined by renewed great power competition and the return of high-intensity warfare. As a result, Berlin has launched the largest military modernization effort in modern German history. This includes increased defense spending; the revitalization of land, air, and naval forces; the expansion of industrial capacity; the strengthening of cyber and space capabilities; and Germany’s re-emergence as one of NATO’s principal conventional military powers in Europe.
This transformation is particularly notable given Germany’s postwar defense trajectory. Even during the Cold War, when the Bundeswehr played a central role in NATO’s forward defense, it operated strictly within alliance command structures, and Germany avoided independent strategic projection. Following reunification in 1990, defense spending declined significantly throughout the 1990s and 2000s, often falling well below NATO’s 2 percent benchmark. Although Russia’s annexation of Crimea in 2014 prompted renewed attention to defense, the full-scale invasion of Ukraine accelerated Germany’s military rearmament.
Germany has committed to increasing its defense budget from €86 billion in 2025 to €162 billion by 2029, while also aligning long-term spending with NATO’s updated guideline of 5 percent of GDP by 2035. In parallel, the Ministry of Defense has announced a €350 billion long-term modernization plan extending through 2041, outlining sustained investments in procurement, infrastructure, and industrial expansion. This industrial transformation is anchored in Germany’s National Security and Defense Industry Strategy, adopted in late 2024, which aims to reduce dependence on external suppliers, strengthen European defense autonomy, and improve procurement efficiency.
For Germany’s ground forces, these reforms include multibillion-euro investments in armor, artillery, mobility, and sustainment. Planned acquisitions include several hundred upgraded Leopard 2 main battle tanks, approximately 5,000 Boxer armored vehicles, and 3,500 next-generation armored vehicles to replace the aging Fuchs fleet. In the air domain, Germany has committed to purchasing F-35A fighter aircraft and an additional 20 Eurofighter Typhoons to strengthen its air superiority, multirole, and air policing capabilities. A total of €34.2 billion has been allocated for aircraft, missile systems, and integrated air and missile defense infrastructure. Meanwhile, €36.6 billion has been earmarked for naval modernization, including new frigates, submarines, and auxiliary vessels designed to secure maritime supply routes, enhance domain awareness, and improve strategic reach.
Germany is also investing heavily in unmanned systems. Most recently, Berlin announced the procurement of new combat drones for the Lithuania Brigade, a permanent deployment of approximately 5,000 troops intended to reinforce NATO’s eastern flank. Defense contractor Rheinmetall has been awarded a contract to manufacture loitering munitions for the German armed forces. These systems, often referred to as “kamikaze drones”, can loiter over an area before being directed to strike a target. Equipped with advanced sensors and AI-enabled target recognition systems, they are designed to identify and relay potential targets to human operators.
According to the German Defense Ministry, these drones will help equip the Lithuania Brigade with a broad-based reconnaissance and strike network by 2027. Germany’s broader investment in unmanned systems is also reflected in its recent procurement agreements with Helsing and Stark Defense. The latest drone acquisition is one of five major procurement projects recently approved by the Bundestag’s Budget Committee. Other approved initiatives include the further expansion of the Infantryman of the Future system, procurement of the LARUS maritime rescue drone, and additional support packages for the F124-class frigates.
Overall, Germany is undertaking a profound military transformation to meet the demands of a more contested European security environment. Its rearmament reflects not only the immediate lessons of the war in Ukraine, but also a broader recognition that military power, industrial capacity, and alliance leadership will be central to European security in an era of renewed geopolitical competition.
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