A significant focus is on the Eurofighter Tranche 5, produced by Airbus, BAE Systems, and Leonardo. An amount of €4 billion is expected to be approved in October 2025 for new aircraft, with an additional €1.9 billion for radar upgrades. This, along with investments in electronic warfare systems and avionics packages, indicates Berlin’s commitment to strengthening its existing European fighter fleet to counteract production delays in the Future Combat Air System (FCAS), a next-gen fighter project involving Germany, France, and Spain.
The army is also a key focus. Over €3.4 billion is earmarked for additional Boxer armored vehicles in October, produced by Rheinmetall and KNDS, alongside €3.8 billion for a new unnamed wheeled tank destroyer.
Several projects, such as a €40 million mobile reconnaissance support system called MAUS, come with attached funding but lack a publicly named contractor.
Modernization efforts include politically sensitive plans like a €2.3 billion upgrade of the Taurus cruise missile, set for approval in December. German Chancellor Friedrich Merz faces pressure from Kyiv for missile supplies to Ukraine, but German governments have been hesitant to transfer them.
Air defense sees major investment, with more than €300 million for additional German-built IRIS-T SLM units, €755 million for ship-launched missiles, and €490 million for new short-range air defense missiles.
A challenging project is the Eurodrone, with €196 million allocated to develop its “detect and avoid” system, necessary for safe operation in European airspace. Although led by Airbus, Dassault, and Leonardo, the program suffers from delays and cost overruns, yet Berlin remains committed to funding it in this budget cycle.
The navy’s plans extend beyond future frigates, with €1.7 billion for upgrading F-123 frigates and several hundred million more for anti-submarine warfare systems and new torpedoes.
The document also includes numerous smaller but significant contracts: €274 million for a fleet auxiliary vessel and hundreds of millions for new trucks, radios, drones, and ammunition of various calibers, contributing to a comprehensive modernization initiative affecting all armed forces branches.
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