Since the Russian invasion of Ukraine began in February 2022 the German arms sector is experiencing dynamic development. According to “SZ”, manufacturers of aircraft, drones and military software are particularly interested.
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However, the daily notes that many details about Germany's defense spending remain classified, making it difficult to fully assess the situation.
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The daily reminds that in 2025, Germany has allocated approximately EUR 100 billion for defensewhich is twice the budget of 2021, before the so-called a turning point in defense policy. As noted by “SZ”, the decision to create a special fund of EUR 100 billion in 2022 allowed a significant part of the funds to be allocated to the purchase of armament, including tanks, aircraft and modern defense systems.
“Sueddeutsche Zeitung” also draws attention to the fact, citing data from the Institute of the World Economy in Kiel, that most of the funds allocated for armaments go to German companies. Of the approximately EUR 170 billion of recorded expenditure for 2020-2025, approximately EUR 109 billion flowed to domestic enterprisesand EUR 41 billion to foreign ones. In the case of EUR 19 billion, no detailed information was provided.
The largest foreign arms suppliers to Germany are the USA, Israel and the Netherlands. Particularly large orders concern the Arrow 3 missile defense systems from Israel, whose value is estimated at EUR 4 billion, and frigates ordered from the Netherlands for EUR 3.5 billion.
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Since February 2022, German arms exports have increased by almost 50%, which allowed Germany to advance from sixth to fourth place in the ranking of the world's largest arms exporters, behind the USA, France and China. The most German military equipment went to Ukraine, followed by the Netherlands and the USA.
