Germany needs crucial US equipment to rearm amid increased spending

Europe is gradually beginning to realize that the threat posed by Russia requires increased spending on its armies, fleets, and air forces, in order to rearm and modernize them, and the Old Continent must be prepared for war, even if that is the way to prevent it.

With the decline of the United States’ commitments to European security, and its demands on European countries to be more self-sufficient, the spotlight is inevitably turning to Germany, as it is the third largest economy in the world after America and China, and the largest in Europe, and with a population of 83.5 million people, it is the most populous country in Europe.

Successive German governments reduced defense spending significantly after the end of the Cold War in 1990, initially focusing on reuniting the east and west of the country, and over the past 35 years the armed forces have suffered from a lack of funding.

NATO first informally agreed to a target of spending 2% of GDP on defense in 2004, formally adopted it in 2006, and repeated it in 2014.

Despite its economic strength, Germany did not achieve this goal until last year for the first time.

Critical condition

Decades of underspending have left the German military in a critical state. Its ground forces are only 50% ready, and there are maintenance arrears running into billions of euros. At one point in 2018, only four of the Luftwaffe’s 128 Eurofighter Typhoons were combat-ready.

The total size of the army must somehow rise from the current 182,000 soldiers to 260,000 within 10 years.

Berlin is aware of the scale of the task that needs to be done. Former Chancellor Olaf Scholz, in his “turning point” speech three days after Russia’s full-scale war on Ukraine in 2022, announced the allocation of an extra-budgetary fund of 100 billion euros for military equipment, and this amount quickly turned out to be far less than what was needed.

In March 2025, Schulz’s successor, Friedrich Merz, convinced the outgoing parliament to amend the Basic Law, Germany’s constitutional framework, and lift the “debt brake” that restricts the structural deficit to 0.35% of GDP.

After exempting defense spending from the “debt brake,” the center-right and center-left Meretz coalition agreed to significantly increase the military budget from 86 billion euros in 2025 to 108.2 billion euros in 2026.

Germany intends to meet NATO’s revised target of spending 3.5% of GDP on basic defense requirements, and another 1.5% on enhancing flexibility and security, and the government will borrow up to an additional 400 billion euros over the next five years for rearmament.

Similar plans

The German Federal Ministry of Defense has prepared a procurement plan worth 377 billion euros, ranging from immediate purchases to long-term contracts.

This plan has one aspect in common with similar plans across Europe in seeking to achieve two things at the same time: governments accept the need to rearm, and hope to recycle some of the huge sums involved by strengthening domestic defense sectors.

Accordingly, German defense equipment manufacturers can expect huge profits, with 182 billion euros of the total amount allocated to German companies.

Rheinmetall AG and its subsidiaries will receive orders worth 88 billion euros, including 687 Puma infantry fighting vehicles, up to 3,500 Boxer armored vehicles, and 561 SkyRugger 30 anti-aircraft systems.

The Bavaria-based company, Del Defense, is likely to supply short- and medium-range IRIS surface-to-air missiles and launchers, worth 17.3 billion euros, in addition to other ammunition.

Overall, only 10% of new purchases are expected to be from the United States, indicating a significant reduction in Germany’s dependence on America and a strengthening of the domestic and European defense sectors, but it is important to look at the systems and capabilities included in this percentage.

Increase commitment

Germany is expected to spend €2.5 billion on 15 additional Lockheed Martin F-35 attack aircraft capable of carrying nuclear bombs, thus increasing its commitment to NATO’s dual-capable aircraft capabilities.

This may also be of greater importance, as Germany’s intended replacement for the Eurofighter, the future air combat system, is a trilateral program with France and Spain, designed not only around a sixth-generation fighter jet, but also around integrated unmanned systems.

There are disagreements between Germany and France over the development of the future air combat system, and Spain is reconsidering its participation, and the program may be cancelled, raising the possibility that the German Air Force will have to rely more heavily on American F-35 aircraft than it had planned.

The German Armed Forces will also order 400 Tomahawk Block cruise missiles from RTX, along with three Lockheed Martin Typhoon launchers for 1.8 billion euros, while it is considering purchasing four additional Boeing Poseidon aircraft for reconnaissance and naval aviation. About “The Hill”

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Reducing dependence on America

Some defend the idea of ​​​​reducing dependence on the United States, but there is an alternative point of view. Despite the decline in the overall percentage of purchases from America, Germany still depends on the United States in several areas, such as nuclear capabilities, long-range strikes, along with intelligence, surveillance, target identification, and reconnaissance, as well as anti-missile defense, and the nature of the war in Ukraine has so far highlighted the central importance of almost all of these areas.

Where does this stand on transatlantic dependency? US President Donald Trump wants European countries to be more self-sufficient, but he expects them to invest heavily in American platforms and equipment. While governments in Europe want to strengthen their defense sectors and do not reduce their strategic dependency on Washington, they have no other choice. It is a contradictory web of ambitions and commitments. German long-term procurement plans illustrate the challenges it faces. There is a degree of inconsistency, but at the moment it is an advantage, not a defect.

• Germany is expected to spend 2.5 billion euros on 15 additional F-35 attack aircraft, capable of carrying nuclear bombs.

• Decades of underspending have left the German army in a critical state, with its ground forces only 50% ready.