Germany is preparing to more than double its defense budget by the end of the decade, with total defense and security spending projected to surpass €200 billion annually by 2029. That figure would represent roughly 3.5% of the country’s GDP, a level that would have been politically unthinkable just three years ago.
For context, Germany’s core defense budget sits at approximately €82-86 billion for 2025/2026. The planned trajectory would push that to €109.8 billion by 2027 alone, a 34% jump from 2026 levels. When you add in total defense outlays, the 2027 figure climbs to approximately €144.9 billion.
The Zeitenwende effect
This seismic shift traces back to February 2022, when Russia’s invasion of Ukraine forced Berlin to confront decades of military underinvestment. Then-Chancellor Olaf Scholz declared a “Zeitenwende,” or turning point, in German foreign policy.
To finance the buildup, Germany plans to establish a €500 billion special Bundeswehr fund spanning 2025 to 2035.
