Germany Increases Military Spending with Focus on Combat Drones and Advanced Defense Systems
Germany is set to increase its military spending to over €108 billion in 2025, focusing on modernization in response to the evolving security situation following Russia's invasion of Ukraine. Key investments include combat drones, 35 F-35A stealth bombers, and 60 CH-47 Chinook helicopters, alongside the development of advanced defense systems such as anti-aircraft tanks and laser weapons. This strategic shift is further underscored by Australia's Electro Optic Systems planning to relocate to Europe to tap into the expanding defense market.
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Germany's military, the Bundeswehr, is allocating over €108 billion ($129 billion) for military spending in 2025, marking a significant increase aimed at modernization and power enhancement. This includes orders for combat drones, a first for the Bundeswehr, driven by the changing security landscape following Russia's invasion of Ukraine.
Notable contracts include drones from Stark Defence and Helsing, each worth up to €300 million, and 35 F-35A stealth bombers from Lockheed Martin for nearly €10 billion. Additionally, Germany is acquiring 60 CH-47 Chinook helicopters from Boeing for about €7.3 billion.
New defensive systems, including the Skyranger 30 anti-aircraft tank expected by 2028 and laser weapons for drone defense, are also in development. Meanwhile, Australia's Electro Optic Systems (EOS) plans to relocate its headquarters to Europe, potentially Germany, to capitalize on the growing defense market, having secured a contract for a 100-kilowatt laser weapon from the Netherlands.
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