Germany Allocates $31 Billion for Military Equipment and Armored Vehicles

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Nov 11 2025

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Source: SeekingAlpha

Investment in Military Modernization: Germany plans to invest nearly €19 billion over the next decade to modernize its armed forces, focusing on uniforms and personal equipment through the FASER program, which aims to enhance the Bundeswehr's capabilities.
Expansion of Military Personnel: The FASER initiative supports Germany's goal to increase its military personnel from approximately 280,000 to around 460,000 by the mid-2030s.
Acquisition of Armored Vehicles: The budget includes €7.5 billion allocated for acquiring new wheeled armored vehicles, likely to include 3,000 to 5,000 Boxer vehicles produced in collaboration with Rheinmetall and KNDS.
Increased Defense Spending: Germany's defense expenditures for 2026 are projected to reach €117.2 billion, exceeding NATO's 2% spending target, reflecting a significant rearmament effort under Chancellor Friedrich Merz.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.