From Drones to Nuclear Missiles: Germany’s Jaw-Dropping €377 Billion Defense Plan Revealed

Germany is moving to dramatically modernize its military, aiming to transform the Bundeswehr into what Chancellor Friedrich Merz described in May as “the strongest conventional army in Europe.” Internal government documents reviewed by POLITICO reveal a sprawling 377 billion euro plan covering land, air, sea, space, and cyber capabilities. While some acquisitions will be reflected in the 2026 budget, many remain long-term projects without a clear timeline, forming a comprehensive roadmap for Germany’s defense overhaul anchored largely in domestic industry.

The documents outline roughly 320 new weapons and equipment projects for the upcoming budget cycle. Of these, 178 already have designated contractors, with the remainder still under planning. German firms dominate the known procurements, accounting for about 160 projects valued at 182 billion. Rheinmetall emerges as the largest industrial beneficiary, appearing in 53 lines worth over 88 billion euros, including 32 billion for the company directly and 56 billion euros for subsidiaries and joint ventures tied to Puma and Boxer armored vehicle programs. The plan foresees delivery of 687 Pumas, including 662 combat units and 25 driver-training vehicles by 2035.

Air defense is another key focus. The Bundeswehr intends to acquire 561 Skyranger 30 short-range turret systems, designed primarily for counter-drone missions, with Rheinmetall leading the program. In addition, millions of grenades and rifle rounds are included in the plan. Diehl Defence appears as the second major domestic industrial partner, with 21 lines valued at 17.3 billion, centered largely on the IRIS-T family. Germany plans to purchase 14 IRIS-T SLM systems (3.18 billion), 396 SLM missiles (694 million), and 300 LFK short-range missiles (300 million), collectively forming a 4.2 billion euros cornerstone of the country’s future air defense.

Unmanned systems are growing in importance. Germany plans to expand its Heron TP armed drone fleet in partnership with Israel’s IAI (100 million) and add a dozen LUNA NG tactical drones (1.6 billion). The navy will receive four uMAWS maritime drones (675 million), including parts, training, and maintenance.

Space capabilities also feature heavily, with over 14 billion earmarked for satellite programs. This includes new geostationary communications satellites, upgraded ground stations, and an ambitious low-Earth-orbit constellation (9.5 billion) to ensure resilient, jam-resistant communications for troops. Defense Minister Boris Pistorius’ 35 billion euro “space security” plan aligns with these ambitions.

Some projects involve foreign suppliers, most notably a potential acquisition of 15 F-35 jets (2.5 billion) from Lockheed Martin to maintain Germany’s nuclear-sharing role. Similarly, 400 Tomahawk Block Vb cruise missiles (1.15 billion) with three Typhon launchers (220 million) and four Boeing P-8A Poseidon maritime patrol aircraft (1.8 billion) remain tied to U.S. export and sustainment frameworks. Altogether, roughly 25 foreign-linked projects total 14 billion euros, less than 5% of the overall request, but encompass Germany’s strategic nuclear and long-range capabilities.

On the ground, the Bundeswehr is expanding from three divisions (two mechanized, one air-mobile) to six (four mechanized, one air-mobile, one home defense) and seeks to recruit 80,000 additional personnel. Domestic projects dominate armored vehicles, sensors, and ammunition lines, ensuring that much of the 377 billion expenditure supports German industry. However, foreign systems remain central to the country’s most sensitive capabilities.

Meanwhile, analysts note that some individual costs, like 1.75 million per IRIS-T SLM missile or 1 million per LFK, may appear high but likely include extensive service, training, logistics, and integration packages. Similarly, the limited number of Typhon launchers relative to the 400 Tomahawks may reflect deployment across multiple platforms, including integration on F127 frigates.