Germany’s coalition government has approved the Bundeswehr Procurement Acceleration Act (Bundeswehrbeschaffungsbeschleunigungsgesetz), a significant overhaul of its military procurement procedures. The law, agreed upon by the ruling coalition on July 23 and set to last until 2035, aims to streamline defense-procurement processes and address chronic capability gaps.
The new legislation removes stop-work periods following contract award disputes, allowing authorities to initiate contracts without secured financing if deemed in national defense interests. This change will be disclosed in tender documents. The law also broadens procurement scope to cover all Bundeswehr needs, including civilian goods and services.
To accelerate procurement, the law allows certain urgent contracts to bypass European Union tendering requirements, limiting competition to EU or European suppliers. Authorities can restrict tenders to these bidders and mandate that procurement originate from European sources.
While some observers argue that this new framework may favor large defense companies over startups, the legislation permits authorities to regulate tender procedures more closely. Notably, parliamentary approval for defense purchases above €25 million remains unchanged.
Germany is set to nearly double its defense spending by 2029, with military expenditure rising from €90 billion in 2024 to €162 billion. The government’s revised budget reflects domestic ambitions and NATO’s new spending goals. Although the Cabinet has agreed on the draft law, it still needs to pass through Germany’s parliament before becoming law.
Source: https://www.defensenews.com/global/europe/2025/07/23/berlin-launches-laxer-laws-in-bid-to-hasten-defense-acquisitions