Germany Overhauls Military Funding to Boost Digital Defense by 2025
Germany’s political parties are pushing for major changes in defence funding and strategy. Negotiations between the CDU/CSU, SPD, BÜNDNIS 90/DIE GRÜNEN, and FDP have led to plans exempting military spending from the country’s debt brake. Meanwhile, industry leaders are calling for a stronger focus on digital innovation within the Bundeswehr.
Today, the Armed Forces Commissioner will release her annual report on the state of Germany’s military, adding to ongoing discussions about its future direction.
In March 2025, Germany approved constitutional amendments allowing defence expenditures above 1% of GDP to bypass the debt brake. The move, backed by the CDU/CSU, SPD, BÜNDNIS 90/DIE GRÜNEN, and FDP, aims to boost investment in the Bundeswehr starting with the 2025 federal budget.
Industry association Bitkom has proposed a new approach called Software Defined Defense to modernise Germany’s military. President Dr. Ralf Wintergerst stressed the need for greater investment in digital technologies, including AI-driven reconnaissance and autonomous systems. He also highlighted cybersecurity as a critical area for strengthening national defence.
Bitkom’s recommendations extend beyond funding. The group urges the Bundeswehr to simplify procurement processes and partner more closely with defence-tech startups. It also calls for updates to recruitment and training, ensuring the military can fill emerging roles such as drone operators.
The Armed Forces Commissioner’s report, due today, will provide an official assessment of the Bundeswehr’s current capabilities and challenges. Its findings could influence how the new policies and digital strategies are implemented in the coming years.
The exemption of military spending from the debt brake will enable higher military investment from 2025. Digital transformation, faster procurement, and new training programmes are set to reshape the Bundeswehr’s operations. The Armed Forces Commissioner’s report will offer further insight into how these changes may take effect.
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