Bundestag approves 2025 German defence budget

Between 2022 and 2026, annual German defence expenditure is likely to have expanded by almost 90% should current draft budgets be passed. (Janes Defence Budgets)

The German Bundestag passed the governing coalition's budget for 2025 on 18 September, granting its approval for a EUR14.7 billion (USD17.3 billion) increase in annual defence expenditure. While several major amendments were implemented in the committee stage, at EUR62.3 billion the core defence allocation remains extremely close to the government's proposal for the year.

Together with a EUR24.1 billion allocation from the Bundeswehr's Sondervermögen (special fund), total authorised German defence expenditure will rise 20.5% in nominal terms versus the 2024 allocation made under the previous government, to EUR86.5 billion.

The major delay to the agreement of 2025's budget was due to the change of government, which followed the federal election in late February. In August 2024, the previous coalition led by Olaf Scholz's Social Democratic Party (SPD) had proposed a core Federal Ministry of Defence budget over EUR9 billion smaller than that which has eventually been set over a year later.

Although cuts amounting to almost EUR690 million were made to some areas of the draft budget's proposals, a major EUR550 million expansion of this year's funding for the Eurofighter Tranche 5 programme consumed the vast majority of these savings. Further changes were made to planned allocations for programmes in future years, including ship purchases, A400M transport aircraft procurement, and wheeled armoured vehicle acquisition – the latter of which is now due to expand by EUR860 million, spread over the years to 2032.