Bundeswehr modernization: 33 billion for the "turning point"

From austerity model to investment engine

Anyone who knew the Bundeswehr in the 2010s remembers a force in permanent austerity mode. Spare parts warehouses were chronically understocked, major equipment stood in workshops instead of on the training ground, and at NATO maneuvers German soldiers sometimes had to mount broomsticks instead of machine guns on their vehicles - an image that caused international head-shaking.

The picture has reversed. The Russian attack on Ukraine in February 2022 acted like a wake-up call. Chancellor Olaf Scholz declared the “Zeitenwende,” the special fund of 100 billion euros was enshrined in the Basic Law. Since then, as much money has been flowing into the armed forces as not since the end of the Cold War.

In December 2024 alone, the Budget Committee of the Bundestag approved armaments projects worth 21 billion euros - a historic record. Over the entire year 2025, more than 33 billion euros were approved for 73 major projects. 

By 2029, defense spending is to rise to 3.5 percent of gross domestic product, far beyond the NATO target mark of two percent. The declared strategic goal is ambitious: Germany wants to build the strongest conventional army in Europe and thereby assume a leadership role in the European security architecture.

But money alone wins no wars. The decisive question is: Will the new equipment reach the troops in time? And will it close the right capability gaps?

Navy: New striking power at sea

The German Navy was for years the neglected child of the service branches. While the army and air force were at least modernized in some areas, the fleet shrank to a minimum. Frigates were out of service due to technical problems, submarines were in dock, and on overseas deployments Germany regularly had to rely on allied navies.

Now the naval force is moving to the center of planning - not least because the Baltic Sea and the North Atlantic are being strategically reassessed after the NATO accession of Finland and Sweden.

MEKO A-200: Replacement procurement born of necessity

The procurement of the frigates of the MEKO A-200 DEU type is a direct reaction to the serious problems of the F125 frigate class Baden-Württemberg. These were originally intended to form the backbone of the German surface fleet, but proved to be a technical disaster: massive software problems, listing during testing, years-long delays in commissioning. The F125 is designed as a stabilization platform for overseas deployments - not for high-intensity naval warfare.

F126 stopped - navy receives 8 MEKO frigates from TKMS

After years of delays and exploding costs, Berlin is ending the largest naval procurement project since 1945. Instead of six highly complex F126 frigates, the navy is now to receive eight MEKO ships - faster, cheaper and with proven technology.

The MEKO A-200 closes this critical capability gap as an interim solution until the next generation - the significantly larger F127 class - is ready for deployment. The design comes from ThyssenKrupp Marine Systems and has already proven itself with several export customers. For the Bundeswehr, the ships will be equipped with German command systems and a weapons configuration optimized for anti-submarine warfare.

The F127, in turn, is intended to form the backbone of the German surface fleet for the coming decades. It is designed as a multipurpose platform that masters both air defense as well as anti-submarine warfare and land-target bombardment. Initial approvals are expected for the early 2030s.

Submarines: Quiet hunters for the depths

Under water, Berlin is relying on the U212CD submarine class, a joint project with Norway. These air-independent boats use fuel-cell technology and are among the quietest submarines in the world. Their strength lies in near-coastal warfare and anti-submarine warfare in shallow waters such as the Baltic Sea - terrain in which large nuclear-powered boats cannot play to their advantages.

Germany is procuring six boats under the program, Norway another six. The joint development lowers unit costs and strengthens the industrial base in both countries. The associated torpedo ammunition is being managed as a separate subproject in order to plan supply chains and storage capacities independently.

U212: German navy receives four more submarines

The Bundeswehr has increased the number of U212CD submarines to be procured from two to six. A new contract strengthens cooperation with Norway and sets strategic standards for NATO operations.

Reconnaissance from the air

The naval force is complemented by five long-range maritime patrol aircraft of the P-8A Poseidon type . The aircraft from Boeing replace the aging P-3C Orion, which have been in service since the 1960s and had long reached the end of their technical service life. The P-8A offers not only more modern sensors, but also significantly longer deployment times and can work seamlessly with allied navies.

Army: From infantry fighting vehicle to wheeled howitzer

The army is undergoing the most comprehensive modernization since reunification. The lessons from the Ukraine war are omnipresent: mobility beats mass, precision beats firepower, and whoever does not react quickly becomes a target.

The Boxer family: Modularity as a trump card

At the center of the army's renewal is the Boxer platform - an eight-wheeled vehicle that, depending on configuration, can take on completely different tasks. The basic concept is strikingly simple: A standardized chassis carries interchangeable mission modules. Today troop transport, tomorrow medical vehicle, the day after tomorrow heavy weapons carrier.

Air defense: First Skyranger 30 tank for the Bundeswehr

Rheinmetall has handed over the first Boxer Skyranger 30 anti-aircraft gun tank to the Bundeswehr. The system is a so-called demonstration model. Series delivery will take place primarily in 2027 and early 2028.

The Skyranger 30 version closes a dangerous capability gap that was ignored for decades: mobile air defense at the brigade level. Since the retirement of the Gepard tank in the 2000s, the Bundeswehr lacked a system that can engage drones, helicopters and low-flying fighter jets. The war in Ukraine has painfully exposed this gap - there, drones decide victory and defeat.

The Skyranger 30 combines a 30-mm revolver cannon with modern sensors and can operate both in a network and autonomously. The first tranche has already been commissioned, with a follow-on procurement in preparation.

Further Boxer variants such as the Schakal or the Heavy Weapon Carrier and various wheeled platforms for command and reconnaissance complement the portfolio. The idea behind it: A standardized vehicle reduces training and maintenance costs and simplifies logistics.

Infantry fighting vehicle Puma: The eternal patient

The situation is more difficult with the Puma infantry fighting vehicle. The system is considered technologically high-quality, but since its introduction it has been struggling with teething problems. During a NATO exercise in 2022, all 18 deployed vehicles broke down - a disaster that made international headlines.

Since then, an elaborate modernization to the so-called VJTF standard (Very High Readiness Joint Task Force) has been underway. The electronics are being revised, the software stabilized, and the spare parts supply improved. Whether the Puma will ever achieve the reliability that a combat vehicle needs in battle remains to be seen. Nevertheless, the Bundeswehr is sticking with it - the development costs have long since been sunk, and alternatives would be even more expensive.

New engines for the Puma infantry fighting vehicle

The Bundeswehr is receiving 53 new engines for the Puma infantry fighting vehicle. A contract for this was recently concluded between the Bundeswehr procurement office and the company Rolls-Royce Solutions, formerly MTU Friedrichshafen.

Artillery: Fire and disappear

The RCH 155 wheeled howitzer is the German answer to a lesson from Ukraine: anyone who does not immediately change position after firing becomes a target for enemy counter-battery systems. The RCH 155 is also based on the Boxer chassis and carries a fully automatic gun turret. It can fire, relocate within seconds, and continue firing from a new position - a decisive advantage against modern reconnaissance drones and artillery radars.

The system is already in serial production, and the Bundeswehr has placed a corresponding order. Other NATO states are also showing interest, which could improve export opportunities and lower unit costs.

Main battle tank: Between Leopard and an uncertain future

For the main battle tank, the Bundeswehr is relying in the short term on the Leopard 2 A8 - the latest variant of the proven system with improved protection, modernized electronics and optimized survivability of the crew. The Leopard 2 remains the backbone of the armored force and will also remain so for at least another decade.

The German-French Main Ground Combat System (MGCS), which was supposed to replace the Leopard 2 and the French Leclerc, is also on the brink after the failure of FCAS. Experts warn that both projects were conceived as a package from the beginning - if one falls, the other also risks failing. 

Leopard 2 A8: New main battle tank for the future

With the Leopard 2 A8, the Bundeswehr is entering a new era. At KNDS in Munich, the modernized main battle tank rolled out publicly for the first time - flanked by the new Panzerhaubitze 2000 A4 and political signals of determination.

Reconnaissance and logistics

Less spectacular, but indispensable, are the investments in reconnaissance drones such as the Aladin, in heavy-duty trailers for tank transport and in thousands of military off-road vehicles. It is these supposedly boring procurements that determine the actual operational capability of an army. An armored brigade without functioning supplies is worthless.

300 Wolf 2 off-road vehicles for the Bundeswehr

The Bundeswehr has ordered another 300 vehicles of the successor model Wolf 2. These vehicles are intended to replace the outdated fleet of the "original Wolves" and meet the most modern requirements.

Air Force: F-35, Chinook and the end of FCAS

The Air Force is facing the biggest upheaval in its history. Several weapons systems are reaching the end of their service life at the same time - and the most ambitious European armaments project of all time has just failed.

FCAS: The end of a European dream

On June 9, 2026, Germany and France officially terminated the Future Combat Air System (FCAS) . The project, launched in 2017 by President Macron and Chancellor Merkel, was supposed to become the largest European armaments project of all time - estimated costs between 80 and 100 billion euros. euronews.com

At the core of the program was a sixth-generation fighter jet, the “Next Generation Weapon System" (NGWS), which was to operate together with drone swarms and a digital combat cloud. Unlike existing fighter jets such as Eurofighter or Rafale, FCAS was conceived as a networked system - aircraft, drones and sensors were to merge into a single combat architecture.

The project failed because of a bitter dispute between the defense companies Airbus and Dassault. Despite repeated political interventions - most recently in March 2026 by Chancellor Merz and President Macron personally - the companies were unable to agree on division of labor, technology transfer and intellectual property. breakingdefense.com

"The German authorities have come to the conclusion that it is not possible to exert further pressure on the companies involved," the Élysée Palace stated laconically.

The failure reveals a fundamental dilemma of European defense policy: Despite all declarations of strategic autonomy, even Paris and Berlin cannot overcome their national industrial interests. dw.com

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Team Gen 6: The attempt at a restart

Berlin and Paris have not entirely given up the idea of a joint fighter jet, however. As part of the next Franco-German ministerial council, which is to take place in Germany in July 2026, both governments want to draw up a new work plan - focused on projects that both sides consider "realistic and strategically sensible."

Under the informal working title "Team Gen 6", follow-up considerations are being discussed that are intended to learn from the mistakes of FCAS: smaller, clearly defined work packages instead of a monolithic megaproject; early clarification of the industrial division of labor; and possibly the involvement of additional partners such as Great Britain, whose Tempest program pursues similar goals.

Whether these considerations will ever lead to an aircraft that flies is uncertain. The experience of FCAS has caused lasting damage to confidence in German-French large-scale projects.

F-35A: The stealth jet from America

The most spectacular individual item in the entire modernization program is the procurement of 35 F-35A Lightning II fighter jets . The aircraft from Lockheed Martin are to be delivered starting in 2026 and stationed in Büchel in 2027. There they will take over nuclear sharing - that task that the aging Tornado has so far carried out.

The F-35 is more than just an aircraft. It is a flying data hub that brings together information from its own sensors, from other platforms, and from space. Its stealth characteristics make it nearly invisible to most radar systems.

Critics criticize the high operating costs and the dependence on American technology. The failure of FCAS now makes this dependence even clearer: For nuclear sharing, there is simply no European alternative.

Eurofighter: modernization of the workhorse

Parallel to the procurement of the F-35, the modernization of the Eurofighter fleet is underway. The aircraft of Tranche 5 are receiving a new radar, improved electronic warfare systems and expanded air-to-ground capabilities. The Eurofighter remains the backbone of German air defense and, through the upgrades, will remain operational for decades to come.

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The Taurus cruise missile is also being upgraded to the NEO standard - with improved range, more precise navigation and greater penetration power against underground targets.

Heavy lift from the air

For heavy transport, the Air Force is ordering 60 CH-47F Chinook helicopters . The aircraft from Boeing are replacing the obsolete CH-53 fleet, which has been in service since the 1970s and has long suffered from a lack of spare parts and technical problems.

The Chinook is a proven workhorse that is in service with almost all NATO partners. It can transport heavy loads over long distances, deploy troops in difficult terrain and evacuate wounded personnel.

Drones: The view from a distance

For unmanned systems, Germany is relying on the European Eurodrone, a MALE system (Medium Altitude Long Endurance), that is being developed jointly with France, Italy and Spain. Development is being delayed, however, which is forcing the Bundeswehr to rely temporarily on Israeli Heron drones.

Air defense: Protective shield over Europe

At the latest since the Russian missile attacks on Ukrainian cities, it is clear: Air defense decides modern wars. Whoever does not control the sky loses - regardless of how strong their ground troops are.

Germany is therefore building a layered air defense system that can intercept threats at different altitudes and distances.

IRIS-T SLM: The export hit

The IRIS-T SLM system from Diehl Defence covers medium ranges and has proven itself impressively in use in Ukraine. It can combat drones, cruise missiles, helicopters and fighter jets and is highly mobile. Germany has delivered several systems to Ukraine and is procuring units in parallel for its own forces.

IRIS-T SLM: Europe's answer to modern air threats

Missiles, drones, cruise missiles - the air threat is growing rapidly. With IRIS-T SLM from Diehl Defence, Europe has a combat-proven system at its disposal that takes precision, mobility and combat experience to a new level.

Patriot: The proven backbone

The American Patriot system remains the backbone of German air defense against aircraft and ballistic missiles. The Bundeswehr is modernizing its systems and replenishing ammunition stocks, which have been partially depleted by deliveries to Ukraine.

Arrow 3: Protection against ballistic missiles

The biggest innovation is the procurement of the Israeli Arrow 3 system . It is designed for the defense against ballistic missiles in space - that is, at an altitude that neither Patriot nor IRIS-T can reach. Arrow 3 is part of the European Sky Shield Initiative (ESSI), a multinational project under German leadership that is intended to stretch an integrated protective shield over large parts of Europe.

The procurement is politically not without controversy, as it bypasses the European defense industry. Defense politicians argue, however, that no European system offers comparable capabilities and that the threat situation does not permit any delay.

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Digitalization and AI: The invisible battlefield

Less visible, but no less important, is the digital rearmament of the Bundeswehr. Modern wars are won not only with tanks and missiles, but also with data - and with the ability to analyze them faster than the opponent.

URANOS AI: Artificial intelligence for the operational picture

With the URANOS AI system, the Bundeswehr is using artificial intelligence for the first time for the real-time analysis of reconnaissance data. Drone images, satellite imagery, radar data and signal intelligence come together and are analyzed automatically. The system recognizes patterns, identifies threats and delivers soldiers operational pictures in seconds instead of hours. defensenews.com

It begins with Armored Brigade 45 in Lithuania, which is considered the spearhead of NATO's eastern flank. From there, the technology is to be rolled out step by step to other units.

PEGASUS and SPOCK: Reconnaissance from space

Digital reconnaissance is complemented by the SIGINT system PEGASUS for electronic reconnaissance and the radar satellite system SPOCK. Both systems are intended to enable a seamless operational picture - from Earth orbit to the battlefield.

Infantry and equipment: The basis of combat power

In addition to the major systems, the Bundeswehr is investing massively in the personal equipment of its soldiers. These are the supposedly small things that decide life and death in operations - and that were criminally neglected for years.

G95: The new standard rifle

The G95 assault rifle, known in the industry as the HK416A8, replaces the G36 and is being procured in up to 250,000 units. It offers higher precision, better ergonomics, and compatibility with modern aiming optics and night vision devices. Procurement was expanded once again in December 2024; in addition, laser modules for use with night vision devices were approved. defensenews.com

HK416: The Bundeswehr's new G95 assault rifle

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Personal protective equipment

At the same time, long-term framework contracts are in place for modern protective vests, helmets, combat clothing and backpacks. The FASER program (field uniform, equipment and protection for deployment) is intended to provide every soldier with up-to-date equipment - a goal that is logistically demanding in view of the personnel strength of more than 180,000 active soldiers.

Challenges and risks

For all the spirit of optimism: The risks are considerable. Money alone does not solve all of the Bundeswehr's problems.

Supply chains and industrial capacities

The European defense industry was on a low flame for decades. Production capacities were reduced, skilled workers have left the industry, supply chains are globally dispersed and fragile. Now suddenly everything is supposed to be delivered at the same time - and not only to Germany, but to all NATO states that are rearming at the same time.

The result: delivery times are getting longer, prices are rising, and some projects are delayed by years.

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Personnel shortage

The Bundeswehr is competing for skilled workers in an emptied-out labor market. IT specialists, technicians, pilots - they all have better earning opportunities and more pleasant working conditions in the private sector. The goal of increasing personnel strength to around 460,000 soldiers and reservists - including up to 260,000 active personnel - is ambitious; whether it is achievable remains open. defensenews.com

Political uncertainties

The failure of FCAS shows how fragile German-French joint projects are. The MGCS tank project is now also at risk of failing. The federal government is examining alternatives - which could throw years of planning into disarray.

Financing is also not secured in the long term. The special fund is finite; by the end of the 2020s at the latest, regular budgetary financing must take over. Whether the political will for this will be permanently present remains to be seen.

Modernization of the Bundeswehr: an army in transformation

Germany is rearming - faster and more comprehensively than any other European nation. The Zeitenwende is real, the investments are enormous, and the strategic objective is clear: The Bundeswehr is to become the strongest conventional army in Europe.

At the same time, the failure of FCAS reveals the limits of European cooperation. The dream of a joint European fighter jet has for the time being come to an end - and with it possibly also the vision of a joint tank.

Whether this ambition is fulfilled will not be decided by contract signatures and press conferences, but by operational readiness on the battlefield. By functioning vehicles instead of workshop wrecks. By soldiers who master their systems. By ammunition depots that are filled.

The coming years will show whether the turning point is more than a political buzzword - or whether Germany will once again fail in the implementation.