Germany is investing hundreds of billions of euros in the modernization of the German Armed Forces (Bundeswehr). This is caused by various geopolitical challenges, the ongoing conflict in Ukraine, and growing threats from Russia. In September, the German parliament approved a federal budget of €591 billion for 2025, which was a real breakthrough for the defense sector. Defense budget reached 2.4% of GDP, or about €86 billion, including €24 billion from a special defense fund created after Russia’s invasion of Ukraine in 2022. By comparison, in 2024, the figure was only about 1.8% of GDP, highlighting the sharp jump.
However, this is only the beginning. The government plans to double defense expenditures by the end of the decade: from €86 billion in 2025 to €152 billion by 2029. The total amount for five years (2025–2029) is estimated to be €649 billion, which will allow NATO’s target of 3.5% of GDP to be achieved by 2029. Chancellor Friedrich Merz emphasizes that these investments are part of the “Zeitenwende” (turning point) announced back in 2022.
At the same time Germany is carrying out large-scale reforms of the Bundeswehr aiming to create “Europe’s strongest army.” According to the plan, by 2035, the number of active military personnel will grow from the current 180,000 to 260,000, plus it will include 200,000 of the reservist personel.
It seems that the German leadership has begun to realize the importance of strengthening its own defense capabilities and the need for German citizens to relearn skills that have been lost over a generation of the peaceful living. There is still a long way to go in this direction.