Does Money Buy Security? Germany’s Defence Spending in Perspective

Germany is massively increasing its defence budget. But can money alone guarantee security?

Germany is experiencing a historic surge in defence spending. Driven by the €100 billion special fund, additional investment programmes and a new political consensus, the country is reshaping its military posture at unprecedented speed. Yet the question remains: does more money automatically translate into more security, or are deeper structural reforms needed?

A Financial Quantum Leap

In 2024, Germany increased its military expenditure by 28 % to approximately $88.5 billion, primarily due to the €100 billion special fund for the Bundeswehr. According to the Stockholm International Peace Research Institute (SIPRI), Germany thus became the largest military spender in Central and Western Europe for the first time since reunification. The European Parliament confirms that in 2024, defence spending amounted to roughly €90.6 billion, representing 2.12 % of GDP – a historic first for a country long criticised for underfunding its armed forces.

Beyond the 2 % NATO Target

For decades, Germany had fallen short of NATO’s 2 % of GDP spending target. That changed in 2024 when, for the first time, Berlin met the requirement. At the 2025 NATO summit, however, member states agreed on an even more ambitious objective: 5 % of GDP for security and defence, broken down into 3.5 % for military spending and 1.5 % for infrastructure, cybersecurity, and resilience investments.

Germany has already signalled its intention to reach the 3.5 % military spending mark by 2029. If realised, this would make Germany one of NATO’s top contributors: a dramatic policy shift compared to the pre-2022 era.

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Financing the Military Buildup

How will this spending spree be financed? The Bundestag recently passed legislation allowing for up to $1 trillion in defence and security funding over the next decade, partially exempt from Germany’s strict debt-brake rules. The 2025 federal budget alone includes €62.7 billion in investments – part of a total €502.5 billion fiscal package – with Defence Minister Boris Pistorius arguing for additional state financing mechanisms to stabilise the country’s defence industry and guarantee long-term procurement security.

Security Gains: Still Falling Short

Despite the unprecedented influx of funds, the Bundeswehr’s operational readiness remains limited. According to recent reports, only about 50 % of Germany’s military equipment is fully combat-ready, reflecting deep-rooted structural and logistical bottlenecks.

Defence Minister Pistorius has therefore made it clear that money alone will not solve the problem. He has proposed reintroducing conscription and expanding the armed forces from today’s 180,000 troops to over 465,000 in the coming years, a politically controversial move, but one he deems necessary to restore full operational capability.

Money Is Only Part of the Equation

Germany’s defence spending revolution marks a historic turning point. Billions are flowing into equipment, infrastructure, and industrial modernisation. Yet financial resources alone cannot guarantee security. Without personnel growth, industrial capacity building, and societal support for a stronger defence posture, the Bundeswehr risks remaining a “giant with clay feet” despite record-breaking budgets.

The coming years will therefore test whether Germany can turn financial might into real military capability – and whether Europe’s security architecture can keep pace with a rapidly changing world. (mbf)

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