The new budget allocations will mean Germany hits NATO spending targets ahead of schedule.  

Germany’s 2026 defence budget has been approved by the Bundestag (parliament), with over EUR108 billion earmarked for the military, according to a 26 November Federal Ministry of Defence (BMVg) announcement.  

With a budget allocation of EUR82.7 billion and an additional EUR25.5 billion from the special fund of the Bundeswehr (German Armed Forces), this EUR108 billion total will go towards equipping soldiers with “state-of-the-art” weapons systems, expanding infrastructure, and gradually increasing personnel numbers. 

The number of soldiers in the Bundeswehr is expected to increase by up to 10,000 next year, according to details of the draft budget released in July, while EUR9 billion per year has been earmarked for enhancing the security of partner countries like Ukraine that have been attacked in violation of international law. 

Germany also projects the budget to increase annually to around EUR152 billion by 2029, thereby meeting NATO core defence spending targets of 3.5% of GDP six years early. Set in June, NATO members agreed to spend 3.5% of GDP on defence by 2035, with an additional 1.5% for defence-related infrastructure.  

This budget also means Germany will assume the “second-largest capability package” in NATO, the BMVg said. 

“In doing so, it is sending a clear signal to its alliance partners: Germany can be relied upon. Those in charge will ensure that the burden is shared fairly between Europe and the USA”, the BMVg said. 

The reason for rising expenditures is the “deteriorating international security situation”, the BMVg said, with Russia continuing to wage war in Ukraine and also making incursions in European airspace in recent months. 

“With investments in defence capabilities, the Federal Republic primarily aims to act as a deterrent and be able to successfully defend itself in a crisis”, the BMVg said. 

Germany’s latest budget approval follows a EUR35 billion commitment to bolster its space capabilities in September, in which the country said it would develop a resilient structure of satellite constellations, ground stations, secure launch capabilities, and services.