Germany’s €80B Rearmament Plan Sidelines US Weapons
Germany approved more than $17 billion in U.S. foreign military sales, peaking at $13.9 billion in 2023 amid heightened demand following Russia’s invasion of Ukraine.
A group of people gather in front of German parliament (Bundestag) holding banners during a demonstration to protest against arms export policy of the government, on February 26, 2019 in Berlin, Germany. Photo by Anadolu Images.
G
ermany is set to push through an €83 billion rearmament drive that heavily favors European defense companies, with only a small fraction of contracts going to U.S. weapons makers, according to procurement documents obtained by POLITICO.
The plan, drawn up for the Bundestag’s budget committee, details 154 major defense contracts scheduled between September 2025 and December 2026. Of that total, just €6.8 billion — about 8 percent — is earmarked for U.S.-made equipment, a sharp break from Berlin’s recent status as one of Washington’s most reliable arms customers.
European focus
The largest projects on the list are dominated by European industry. Topping the bill is the €26 billion F-127 frigate program, to be led by German naval giant ThyssenKrupp Marine Systems (TKMS). Another €4 billion is allocated for Eurofighter Tranche 5 jets built by Airbus, BAE Systems, and Leonardo, with €1.9 billion more for radar upgrades.
The army stands to receive €3.4 billion for new Boxer armored vehicles produced by Rheinmetall and KNDS, alongside €3.8 billion for a new wheeled tank destroyer. Additional funding will go to Taurus cruise missile modernization, IRIS-T SLM air defense systems, and a troubled “Eurodrone” project, which still requires significant development.
By contrast, U.S.-made systems appear only sparingly: €150 million for Boeing torpedoes linked to the P-8A patrol aircraft and €5.1 billion for Raytheon’s Patriot missile batteries, supplemented by smaller missile and radio packages.
Shift from Washington
The figures mark a striking pivot. Between 2020 and 2024, Germany approved more than $17 billion in U.S. foreign military sales, peaking at $13.9 billion in 2023 amid heightened demand following Russia’s invasion of Ukraine. That spree briefly made Berlin one of the top buyers of American arms worldwide.
Now, Berlin is signaling a longer-term bet on European strategic autonomy. According to the Stockholm International Peace Research Institute, NATO’s European members sourced 64 percent of their arms from the U.S. in recent years. Washington — and particularly President Donald Trump — has urged allies to keep buying American.
In July, Trump struck a trade deal with European Commission President Ursula von der Leyen, touting “hundreds of billions” in future European purchases of U.S. defense equipment. A joint statement promised that the EU would “substantially increase procurement” from the U.S., with American government support.
But defense spending remains in the hands of national governments, and Germany’s procurement plan undercuts that pledge.
Modernization and politics
The plan highlights Germany’s intent to upgrade across all services, from naval frigates and submarine warfare systems to drones, trucks, radios, and ammunition. Some politically sensitive projects are also included, such as €2.3 billion for Taurus cruise missile modernization — under pressure from Ukraine, but still withheld from direct transfer.
For Chancellor Friedrich Merz, the program balances Germany’s NATO commitments with an industrial strategy to bolster Europe’s defense sector. Yet the sidelining of U.S. suppliers could strain Berlin’s relationship with Washington, just as NATO grapples with Russian provocations in the Baltic and the ongoing war in Ukraine.
Analysts say the document illustrates a growing divide: Europe doubling down on self-reliance while Trump’s America demands loyalty to U.S. arms exports. Whether that divergence deepens may depend on how Berlin manages both its alliances and its defense industry priorities in the coming years.
(Source: Politico)
