The German Bundestag is poised to approve a significant wave of military procurement contracts on Wednesday, totaling approximately €7.5 billion. According to government documents obtained by POLITICO, the proposed acquisitions underscore the ongoing efforts to modernize the Bundeswehr, yet also raise critical questions regarding strategic dependencies and budgetary priorities.
The largest individual contract, valued at roughly €3.5 billion, will be awarded to General Dynamics European Land Systems (GDELS) for the development and supply of a new reconnaissance vehicle for the Heer (Army). While the involvement of German companies like Hensoldt, Rheinmetall and Esigma Systems – contributing sensor technology, weapon systems and training equipment – is intended to foster domestic industry, the reliance on a US-owned entity sparks debate about the future of German defense autonomy. The staggered delivery schedule, commencing in 2028 and concluding in 2032, has also drawn criticism for potentially delaying the strengthening of immediate operational capabilities.
A new infantry fighting vehicle, designated “Schakal” is another centerpiece of the procurement push. This hybrid design, combining a Boxer chassis and Puma turret, is being produced by ARTEC GmbH, a joint venture between Rheinmetall and KNDS Deutschland and carries a price tag of €3.4 billion. The project aims to equip the Bundeswehr’s developing medium-sized forces, but questions linger about the efficiency of combining existing platforms – a characteristic critics argue risks duplication and escalating costs. Delivery is expected to occur between 2027 and 2031.
Further approvals include a €138 million contract for Rheinmetall Italia’s MK25 machine gun, intended for continued use until 2032. This seemingly smaller acquisition highlights the continuous need for replacing and sustaining existing hardware, diverting funds that could potentially be allocated to more advanced technologies.
Finally, a significant €386 million contract has been earmarked for the acquisition of Evolved Sea Sparrow Missile (ESSM) Block 2 air defense missiles from the US giant Raytheon. While acknowledging the continued necessity of interoperability with NATO allies, this reliance on US-sourced systems prompts scrutiny regarding the development of indigenous missile defense capabilities and the potential for geopolitical leverage. German companies like Diehl Defence, MBDA Deutschland and RAM-System GmbH are designated as subcontractors, mitigating but not negating concerns surrounding strategic dependence.
The swift succession of these substantial contracts suggests a concentrated effort to address perceived deficiencies in the Bundeswehr’s readiness, yet invites a broader conversation regarding resource allocation, the balance between international collaboration and domestic innovation and the ultimate trajectory of German defense policy in a rapidly changing global landscape.