BERLIN, — Germany is preparing for a major expansion of its military spending after the Budget Committee of the German Bundestag approved its recommendation for the 2027 federal defence budget, with total defence resources exceeding €139 billion.
The proposed allocation includes approximately €109.7 billion from the regular defence budget and nearly €30 billion from the Bundeswehr Special Fund (Sondervermögen Bundeswehr). The increase is part of Chancellor Friedrich Merz's efforts to strengthen Germany's armed forces, expand military procurement and improve the country's defence capabilities.
The plan also includes more than €11.6 billion in military assistance for Ukraine, ensuring continued German support for Kyiv in response to its military requirements.
Germany's Defence Budget Exceeds €139 Billion
Germany's regular defence budget under Einzelplan 14 is expected to increase to approximately €109.7 billion in 2027, compared with €82.7 billion in 2026.
An additional amount of nearly €30 billion will come from the Bundeswehr Special Fund, established to support the modernisation and expansion of Germany's armed forces.
The combined allocation will take Germany's planned defence resources above €139 billion, placing it among the world's largest military spenders.
Military Procurement and Modernisation Plans
The approved budget also includes adjustments to several military procurement programmes and defence-related projects.
Key areas identified in the budget discussions include:
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16 additional A400M transport aircraft in the tactical version.
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Further MEKO A-200 frigates for the German Navy.
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Secure satellite communications systems.
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Civil defence and population protection measures.
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Funding for defence innovation and technological development.
These projects form part of Germany's wider effort to improve the operational capabilities of the Bundeswehr across its air, land and naval forces.
The regular defence budget also includes substantial procurement funding. The Bundestag's earlier budget documentation identified approximately €55.8 billion for military procurement in the 2027 defence ministry budget.
€11.6 Billion Allocated for Ukraine
Continued military assistance to Ukraine is another major element of Germany's 2027 spending plan.
More than €11.6 billion has been earmarked for supporting countries attacked in violation of international law, with Ukraine identified as the principal recipient of the planned assistance.
The funding is included under Einzelplan 60, which covers security, defence and stabilisation assistance. The allocation will allow Germany to continue providing military support according to Ukraine's requirements.
Germany's 2027 Budget and Government Borrowing
The defence expansion is part of a wider government spending programme covering military capabilities, infrastructure and economic investment.
The Budget Committee approved a federal spending plan of approximately €560.92 billion for 2027, with investment expenditure increased to €61.85 billion.
The financing plan includes €210.4 billion in total new borrowing, making it the second-largest annual borrowing programme in German history, behind the €215.4 billion recorded in 2021 during the COVID-19 pandemic.
The core federal budget accounts for approximately €122.97 billion in net borrowing. Additional borrowing comes through special financing arrangements for defence and infrastructure.
The agreement followed lengthy negotiations between Chancellor Friedrich Merz's conservative CDU/CSU bloc and its coalition partner, the Social Democratic Party (SPD).
To secure agreement, the coalition dropped a proposed tax on plastic packaging, postponed a tax on sweetened drinks until 2028 and delayed a planned reduction in electricity taxation. It also reversed planned reductions in benefits for children from lower-income families.
Final Parliamentary Approval Still Required
The Budget Committee's decision is an important step towards implementing Germany's 2027 spending programme, but it is not the final parliamentary approval.
The full Bundestag is expected to consider and vote on the federal budget during its November 24–27, 2026, sitting week.
If approved, the budget will provide the financial framework for Germany's planned military expansion, continued assistance to Ukraine and investment in national infrastructure.
For the Bundeswehr, the proposed increase represents a major rise in available funding compared with 2026, with military procurement, modernisation and defence infrastructure remaining central priorities.
NOTE - The approval reported here is the Budget Committee's approval, not final approval by the full Bundestag. The €139 billion figure combines the regular defence budget and the Bundeswehr Special Fund; it does not include the separate €11.6 billion Ukraine assistance allocation in that total.
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