Rank #4 · Europe
Germany became the world's fourth-largest military spender in 2025 at $114 billion (2.3% of GDP), a 24% real-terms surge per SIPRI — the largest jump among major spenders. The €100 billion Sondervermögen special fund created after Russia’s 2022 invasion is winding down by end-2026, and Chancellor Friedrich Merz’s government has secured a constitutional amendment lifting the debt brake for defence to fund the post-Sondervermögen baseline.
The 2026 federal defence budget is ~€83 billion (~€20B above 2025), supplemented by the final tranche of the €100B Sondervermögen authorized in 2022. Combined, German defence outlays for 2026 reach approximately €108 billion ($127B). In March 2025 the Bundestag passed a constitutional amendment exempting defence spending above 1% of GDP from the debt brake, enabling a sustained 3.5% of GDP trajectory by 2029 to meet NATO’s new Hague summit target. Procurement priorities include 35 F-35As (replacing Tornado dual-capable role), 60 CH-47F Chinooks, 123 Leopard 2A8 tanks, four F126 frigates, and a sixth Type 212CD submarine. Personnel costs are squeezed by recruitment shortfalls.
The Bundeswehr fields 186,221 active personnel as of January 2026 — well short of the 203,000 target for 2031 and below the 2018 baseline. The force comprises the Heer (Army, ~62,000), Marine (Navy, ~16,000), Luftwaffe (Air Force, ~28,000), the joint Streitkräftebasis and Cyber- und Informationsraum commands, plus the Sanitätsdienst medical service. Germany leads NATO's enhanced Forward Presence in Lithuania with the 45th Armoured Brigade — the first permanent overseas deployment since WWII, reaching full combat readiness in 2027. Recruitment remains the binding constraint; Defence Minister Pistorius has pushed for a Swedish-style selective conscription model, with legislation expected in 2026.
Germany’s defence industry is the largest in Europe by revenue. Rheinmetall has tripled production capacity since 2022 — 155mm shells reached 700,000 per year by 2025, with a target of 1.1 million by 2027 (including the Unterlüß and Várpalota plants). KNDS Deutschland (Leopard 2, Puma) and ThyssenKrupp Marine Systems (Type 212CD, F126 frigate) anchor land and naval primes. Diehl produces IRIS-T SLM systems (heavily exported to Ukraine and Estonia). Hensoldt (sensors) and Airbus Defence and Space (A400M, Eurofighter) round out the top tier. Arms exports hit a record €13.3 billion in 2024, with Ukraine, Israel, and Singapore as top destinations.
Germany is not engaged in direct combat but is the largest European supplier of military aid to Ukraine — €28 billion in commitments through 2025, including 80+ Leopard 1/2 tanks, 60+ Marder IFVs, IRIS-T SLM batteries, and Patriot systems. The Bundeswehr leads NATO's eFP Lithuania brigade and contributes to enhanced Vigilance Activities in Romania and Slovakia. Domestic threat focus has shifted to Russian sabotage and hybrid operations, with the BfV reporting elevated activity through 2025-2026. Germany is not directly involved in Middle East operations but maintains a small naval presence with EU Aspides in the Red Sea.
SIPRI’s April 27, 2026 fact sheet ranked Germany #4 globally at $114B for 2025, up 24%. Chancellor Friedrich Merz’s coalition (CDU/CSU-SPD), formed May 2025, secured the March 2025 debt-brake reform days before taking office. The first permanent Bundeswehr overseas brigade in Lithuania achieved initial operating capability in late 2025. Germany ordered 20 additional Eurofighter Tranche 5 jets in February 2026. The €100B Sondervermögen will be exhausted by end-2026; a successor "Bundeswehr Investment Programme" of €377B over 12 years was unveiled in March 2026 to maintain the spending trajectory.
Germany spent $114 billion on defence in 2025 per SIPRI — the world's fourth-largest military budget and 2.3% of GDP. The 2026 budget bill funds approximately €108 billion ($127B) including the final Sondervermögen tranche, with a constitutional amendment unlocking sustained spending at 3.5% of GDP by 2029.
The €100 billion special fund created in June 2022 by a constitutional amendment, financing modernization outside the regular defence budget. It funded the F-35A purchase, Chinook helicopters, IRIS-T SLM, and ammunition replenishment. The fund is fully obligated and will be exhausted by end-2026; a successor multi-year programme has been announced.
The Bundeswehr fields 186,221 active personnel as of January 2026, below its 203,000 target. Recruitment is the binding constraint; Defence Minister Pistorius has proposed selective conscription based on the Swedish model, with legislation expected in 2026.
No. Germany hosts approximately 20 US B61 gravity bombs at Büchel Air Base under NATO nuclear sharing. The Luftwaffe’s F-35A purchase replaces the Tornado IDS in the dual-capable strike role from 2027.
Rheinmetall (ammunition, armoured vehicles), KNDS Deutschland (Leopard 2, Puma), ThyssenKrupp Marine Systems (submarines, frigates), Hensoldt (sensors), Diehl Defence (IRIS-T air defence), and Airbus Defence and Space (A400M, Eurofighter share). Rheinmetall has tripled production capacity since 2022.