Germany Increases Military Spending with Focus on Combat Drones and Advanced Defense Systems
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.
