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Bundeswehr procurement 2025: Questions and answers on the secret shopping list

Bundeswehr procurement 2025: Questions and answers on the secret shopping list

Bundeswehr procurement 2025: Questions and answers on the secret shopping list – Image: Xpert.Digital

81 procurements under lock and key: What the Bundestag must now decide

What are the Bundeswehr’s plans for 2025?

Which procurement projects are on the classified list? The Bundeswehr plans to procure 81 major armament projects in 2025, which are to be submitted to the Bundestag's Budget Committee for approval. This list, classified as "Classified - For Official Use Only," by the Ministry of Defense, includes projects valued at more than €25 million each. Eight projects have already been submitted to the Budget and Defense Committee, and 73 more are to follow by the end of December.

How does procurement compare to previous years? With 81 projects, the Bundeswehr remains just below the record figure set in 2024, when 97 major armament projects were approved. These figures illustrate the Bundeswehr's intensive procurement activity in a time of heightened security demands due to the Russian war of aggression against Ukraine.

What does the €25 million limit mean? All Bundeswehr procurement projects with an investment volume of €25 million or more require separate approval from the Budget Committee of the German Bundestag before the contract is concluded. The Federal Ministry of Defense forwards its contribution to the Federal Ministry of Finance, which then prepares a corresponding proposal for parliamentarians.

Which main systems are on the list?

Which fighter aircraft will be procured? The Bundeswehr plans to procure a fifth batch of Eurofighter fighter jets. This expansion of the existing Eurofighter fleet is intended to further strengthen Germany's air defense capabilities. In addition, the procurement of laser target illumination for the Eurofighter is planned for €358 million.

What are the plans for the helicopters? An existing framework agreement will provide for Airbus H145M light combat helicopters. The Bundeswehr plans to procure a total of 62 of this helicopter type. The first H145M was delivered in November 2024, and the remaining 61 are scheduled to follow by the end of 2028. The total cost for up to 82 H145M helicopters is over €4 billion.

Which armored vehicles will be procured? The list includes both the Boxer wheeled armored personnel carrier and the Puma infantry fighting vehicle. €3.9 billion is budgeted for the GTK Boxer RCT30 wheeled infantry fighting vehicles. These are intended to equip the infantry in the newly established "Medium Forces" force category. In addition, another batch of Puma infantry fighting vehicles is to be purchased from an already concluded framework contract.

What innovative technologies are being developed?

What is the Uranos AI project? A particularly innovative project is the development of an AI-supported system for monitoring large areas on NATO's eastern flank. The "Uranos AI" project aims to develop a kind of digital command post in which AI-analyzed data from radars, drones, cameras, satellites, lasers, and other reconnaissance units converge in real time. Starting in 2026, the brigade strengthening the eastern flank in Lithuania is to be equipped with the system. The contract is estimated at approximately €80 million.

Who is applying for the AI ​​project? Three defense companies and two drone startups are participating in the secret tender for Uranos AI. Applicants include Airbus, Rheinmetall, and Hensoldt, as well as drone specialists Quantum Systems and Helsing. The submitted concepts vary considerably in quality, and there are already reportedly favorites for the contract.

What laser weapons are being developed? The development of a high-precision laser weapon system for the Navy is also on the agenda. The Bundeswehr has already gained extensive experience with laser weapons: A laser weapon demonstrator was successfully tested on the frigate "Sachsen" from June 2022 to September 2023, achieving impressive results in more than 100 test firings. The cooperation between Rheinmetall and MBDA Deutschland will continue to develop a joint maritime laser product for drone defense.

What problems are there with procurement?

What are the difficulties with Frigate 126? The Frigate 126 project is experiencing significant problems. A "contract adjustment" is envisaged because the project is already running beyond its planned time and cost framework. Budget officials have imposed a spending freeze on the €671 million budgeted for this year. Delivery of the first frigate, originally scheduled for 2028, is expected to be delayed until at least 2031. The Dutch contractor Damen has reported delayed deliveries due to problems with IT interfaces in its proprietary design and manufacturing software.

What are the costs and risks involved? Delays for the 126 frigate could extend by up to four years. A project cancellation would raise legal and political challenges, as some of the funds could be reclaimed. Alternatively, construction plans or hull sections already underway could be used for other programs.

How is the defense budget developing?

What funds are available? The defense budget for 2025 will increase by approximately €10 billion compared to 2024, to approximately €62.43 billion. In addition, expenditures of approximately €24 billion are planned from the Bundeswehr Special Fund. This means that the Bundeswehr will have a total of more than €86 billion at its disposal for 2025.

How are the long-term plans developing? The key figures for the coming years envisage that Budget 14 will increase to €82.69 billion in 2026, €93.35 billion in 2027, €136.48 billion in 2028, and €152.83 billion in 2029. This massive increase demonstrates the long-term focus on significantly strengthening defense capabilities.

What does the new procurement law mean? The new Planning and Procurement Acceleration Act is scheduled to take effect in early 2026. It expands on an initial law from 2022 and is intended to help ensure that equipment and supplies reach the troops more quickly. The requirement to tender for defense contracts will be relaxed, and court appeals will no longer have a suspensive effect.

 

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Which air defense systems are being procured?

What are the plans for Iris-T and Patriot? The procurement of guided missiles for the Iris-T and Patriot air defense systems is on the agenda. The Iris-T SLM system can engage targets at ranges of up to 40 kilometers and altitudes of 20 kilometers. It uses the Iris-T SL surface-to-air guided missile and reaches speeds of around 1020 m/s (Mach 3).

What further developments are there? Diehl Defence is developing the next evolutionary stage, the Iris-T SLX, which, thanks to a new dual-pulse engine, is expected to achieve a range of approximately 80 kilometers at an altitude of 30 kilometers. This system is intended to serve not only air defense but also the engagement of ground targets.

How does the Patriot procurement work? Four new Patriot systems can also be ordered with corresponding guided missiles. The Patriot system carries the Pac-2 and Pac-3 guided missiles, which are up to 5.31 meters long and weigh 907 kilograms. Only the Patriot can engage strategic ballistic missiles, making the interceptors significantly more expensive than the Iris-T.

What personnel changes are planned?

How is the personnel situation developing? The 2025 budget will create approximately 10,000 additional military and approximately 1,000 civilian positions. This will allow for more promotions and more flexibility at the entry-level level of the Bundeswehr. In the long term, the number of active soldiers is to increase by at least 60,000, and the number of reservists is to rise to 240,000.

Why is the increase in personnel necessary? The new equipment must be operated, ports must be guarded, and troops must be supplied. The Bundeswehr needs not only better equipment but also personnel. The increase in personnel is a fundamental prerequisite for the implementation of the ambitious procurement plans.

What international aspects need to be considered?

How does this fit with NATO's strategy? NATO has agreed to increase its defense spending to five percent of gross domestic product by 2035—3.5 percent for military spending and another 1.5 percent for military-grade infrastructure. These decisions are a "historic milestone" and the right response to the threat posed by an aggressive Russia.

What European collaborations exist? The Boxer project is being implemented through the European Armaments Agency (OCCAR). In addition to Germany, the Netherlands also plans to acquire 72 wheeled infantry fighting vehicles. These larger quantities could reduce the vehicle's price and increase interoperability.

How is procurement accelerated?

What new procedures are in place? The expanded Procurement Acceleration Act now applies to all contracts to meet the needs of the Bundeswehr—that is, in addition to military requirements, all civilian requirements such as medical supplies and construction services. Larger contracts no longer need to be split into smaller tenders.

What's changing regarding tenders? Procurement will be accelerated through amended administrative regulations for awarding public contracts, reducing the burden on contracting authorities. The production of weapons, ammunition, and military equipment within the federal territory will receive priority, as it represents a "significant security interest."

How will bureaucracy be reduced? Together, the two projects will generate relief of approximately €23 million for the federal government and €6.9 million for businesses. The new project will significantly speed up procurement for the Bundeswehr.

What challenges exist?

What are the timing issues? After the budget is passed in the second half of September, the provisional budget management period for the Bundeswehr procurement agencies will also end. Then, the 73 additional planned projects can be submitted to the Budget Committee for approval by the end of December.

What industry challenges exist? A heated debate surrounds whether the strong lobby of established "heavy metal companies" like Rheinmetall, KNDS, or Airbus Defence will prevail, or whether startups like Anduril, Helsing, or Quantum Systems will emerge as serious challengers, opening up new avenues in software-driven defense.

How is financing secured?

What role does the special fund play? A total of €24.06 billion is to be channeled from the special fund in 2025 alone, of which €21.64 billion will go to military procurement. The new constitutional amendment suspends the debt brake for all defense and security spending that exceeds one percent of gross domestic product.

What does unlimited debt mean? Germany can theoretically invest an unlimited amount of money in defense, civil protection, intelligence services, and cybersecurity. The debt brake only applies to a portion of these expenditures; anything beyond that can be financed with loans at will. In addition, there will be a new special fund of €500 billion.

The Bundeswehr's comprehensive procurement plan for 2025 demonstrates the transformation of the German armed forces from an army primarily geared towards foreign missions to one focused on national and alliance defense. With 81 planned major projects, innovative technologies such as AI-supported surveillance and laser weapons, and a record budget of over 86 billion euros, this secret shopping list documents the transformation of German security policy in times of increased threats. At the same time, the problems with projects such as the frigate 126 highlight the ongoing challenges in implementing complex armaments projects. Accelerated procurement and constitutional changes to the debt brake are creating new conditions for a more rapid modernization of the Bundeswehr, while the balance between established defense companies and innovative start-ups will shape the future of the German defense industry.

 

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