The Bundestag's budget committee is set to approve an additional EUR52 billion in military expenditures next week, according to insider sources. The largest portion of this sum will be allocated to clothing and personal equipment, totaling more than EUR20 billion, as detailed in a procurement list of 29 items from the Bundeswehr obtained by Reuters on Tuesday. The package also includes a new order for 200 Puma infantry fighting vehicles, valued at EUR4 billion. These amounts include so-called commitment appropriations, meaning planned expenditures over the coming years. Purchases will also include missiles for the new "Arrow 3" missile defense system, developed by Israel and the United States, which was recently commissioned but is set to be expanded further.
Defense expenditures are exempt from the government's debt brake for the coming years. The aim is to significantly upgrade the Bundeswehr in response to the Russian threat. The German armed forces, currently comprising about 184,000 active soldiers and nearly 100,000 reservists, are expected to grow to at least 450,000 by 2035. The increased spending on clothing and personal equipment is also attributed to this planned expansion.
Additionally, defense contractor Rheinmetall is set to receive a multi-billion euro contract for a satellite-based reconnaissance system. The initial contract value is approximately EUR1.76 billion. The system, named "SPOCK," will provide reconnaissance data to the Bundeswehr's new 45th tank brigade stationed in Lithuania. It will deliver radar images regardless of weather or time of day, analyzed using artificial intelligence (AI) to enable early detection of enemy military activities. The contract with the joint venture Rheinmetall ICEYE Space Solutions is expected to be signed by December 2025. If all options are exercised, the total contract volume could exceed EUR2.7 billion.
(Reporting by Markus Wacket; edited by Sabine Ehrhardt. For inquiries, contact our editorial team at berlin.newsroom@thomsonreuters.com (politics and economy) or frankfurt.newsroom@thomsonreuters.com (business and markets).)
