Germany aims to speed up its military modernization by simplifying defence procurement procedures, fostering European cooperation, and supporting start-ups. A draft law, seen by Reuters, proposes changes aimed at reducing delays and cost overruns in the past.
The German government seeks to capitalize on Europe’s growing defence spending, with a budget framework set to increase total military spending from €95 billion in 2025 to €162 billion in 2029. This represents 3.5% of GDP.
The new law aims to facilitate European procurement by allowing contracting entities to limit tenders to EU-based bidders and requiring a minimum share of contracted goods or services to originate within the region.
To support start-ups, the draft law enables advance payments for innovative companies participating in competitions. The law also proposes simplification of EU defence procurement rules to ease joint cooperation across the board.
However, some hurdles remain, including parliamentary approval required for defence purchases exceeding €25 million. To meet NATO’s new 5% defence spending target, Germany will need an additional 60,000 troops by 2029, taking the total military personnel to around 260,000.
The government warns that Moscow’s war objectives may extend beyond Ukraine, emphasizing the importance of timely defence procurement.
Source: https://www.reuters.com/business/aerospace-defense/berlin-simplify-rules-bid-speed-up-defence-surge-draft-law-says-2025-06-27