BERLIN — Germany’s military procurement strategy, recently unveiled, reveals a significant pivot toward European defense industries, with only 8 percent of funding earmarked for American weaponry.
This shift stands in stark contrast to the desires of President Donald Trump, who has consistently urged European nations to maintain and expand their purchases of American arms, especially amidst the ongoing geopolitical tensions linked to his administration.
The new procurement plan outlines a robust €83 billion in defense contracts over the upcoming year, detailing a total of 154 significant acquisitions planned between September 2025 and December 2026.
Under existing German legislation, any contract exceeding €25 million must receive parliamentary approval, leading to a focus predominantly on European manufacturers in the current submission to the budget committee.
Among the few notable American-led projects are approximately €150 million allocated for torpedoes related to Boeing’s P-8A aircraft and around €5.1 billion for MIM-104 Patriot air defense missile systems and their launchers provided by Raytheon.
When considering other U.S.-originated procurements, such as AMRAAM and ESSM missiles and various radio equipment, American contracts amount to roughly €6.8 billion, representing merely 8 percent of Berlin’s entire procurement plan.
In recent years, Germany has emerged as one of the largest customers for U.S. military products.
From 2020 to 2024, the U.S. government indicated that Germany agreed to over $17 billion in foreign military sales, with a peak of $13.9 billion in 2023, reflecting heightened demand following the onset of Russia’s aggressive actions in Ukraine.
This acquisition trend briefly positioned Germany among the leading global destinations for U.S. arms exports, alongside countries like Poland and Japan.
However, the latest procurement strategy highlights a decisive shift back towards European defense manufacturers.
According to the Stockholm International Peace Research Institute, European NATO member states sourced 64 percent of their arms from the U.S. between 2020 and 2024, a ratio President Trump aims to see sustained.
Following a recent trade agreement with European Commission President Ursula von der Leyen, Trump emphasized that the EU would purchase “vast amounts” of American weaponry worth “hundreds of billions.”
The agreement included statements supporting increased EU expenditures on U.S. military equipment with backing from the U.S. government.
Despite this, defense budget decisions in Europe lie within the control of individual national governments, and in Berlin, the trends reveal a different approach.
Among the most notable projects is the F-127 frigate program, with an estimated price tag of €26 billion, slated for design by TKMS, a leading German marine company.
Expected to go before the budget committee in June 2026, these new warships will enhance long-range air and missile defenses within the German Navy.
The procurement agenda also puts a significant priority on the Eurofighter Tranche 5, with funding allocations of €4 billion set for new aircraft and an additional €1.9 billion projected for radar improvements.
These investments, alongside advancements in electronic warfare systems and avionics, signify Berlin’s commitment to bolstering its existing European fighter fleet, particularly in light of delays associated with the Future Combat Air System (FCAS) being jointly developed by Germany, France, and Spain.
The German army is set for enhancements as well, with more than €3.4 billion earmarked for new Boxer armored vehicles constructed by Rheinmetall and KNDS, plus €3.8 billion slated for a new yet-to-be-named wheeled tank destroyer.
A few projects, such as the €40 million mobile reconnaissance support system, termed MAUS, are allocated funds but lack a specified contractor at this stage.
The modernization agenda includes critical programs like the €2.3 billion upgrade of the Taurus cruise missile set for approval in December.
There is considerable pressure on Chancellor Friedrich Merz from Kyiv to provide these missiles to Ukraine, yet past German governments have hesitated to transfer such munitions.
Air defense capabilities remain a priority as well, with plans for over €300 million devoted to additional German-built IRIS-T SLM units, €755 million for ship-launched missiles, and €490 million for a new series of short-range air defense missiles.
Among the more challenging initiatives listed is the Eurodrone, which has €196 million allocated for the development of its critical “detect and avoid” system, a necessary feature for safe operation in European airspace.
Led by Airbus, Dassault, and Leonardo, this project has faced ongoing delays and cost escalations, yet Berlin is pressing forward with funding during this budget cycle.
The naval acquisitions extend beyond future frigates, including €1.7 billion earmarked for upgrading the existing F-123 frigates and additional spending on anti-submarine warfare systems and new torpedoes.
In total, the procurement document outlines numerous smaller yet significant contracts, totaling €274 million for a fleet auxiliary vessel alongside hundreds of millions allocated for trucks, radios, drones, and a variety of munitions.
This comprehensive modernization undertaking spans all branches of the armed forces, demonstrating Germany’s commitment to enhancing its military capabilities strategically.
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