Germany’s $98B defense plan is said to favor European industry, limit U.S. buys

Germany is channeling the bulk of its military rearmament toward European suppliers, with only about 8% of contracts earmarked for American-made systems, Politico Europe reported Tuesday, citing a leaked procurement blueprint.

The plan, prepared for the Bundestag’s budget committee, outlines nearly €83 billion ($98 billion) in projects to be approved between September 2025 and December 2026.

Out of 154 planned purchases, major U.S. contributions are limited to roughly €5.1 billion for Raytheon’s (NYSE:RTX) Patriot missile system and €150 million for torpedoes linked to Boeing’s (NYSE:BA) P-8A aircraft. Including smaller contracts, U.S. suppliers account for just €6.8 billion overall.

That marks a shift from recent years when Berlin ranked among Washington’s top defense customers, signing more than $17 billion in U.S. arms deals between 2020 and 2024. President Donald Trump has publicly urged Europe to continue buying American hardware, but Berlin’s latest figures suggest a stronger tilt toward homegrown programs.

The largest single project is the €26 billion F-127 frigate program, to be built by Thyssenkrupp Marine Systems. Other big-ticket European efforts include more than €4 billion for new Eurofighter jets and nearly €3.5 billion for Boxer armored vehicles. The plan also funds modernization of Taurus cruise missiles, new short-range air defenses and upgrades to existing frigates.

Additional spending covers the troubled Eurodrone project, naval anti-submarine systems and a wide range of smaller contracts for vehicles, radios, drones and munitions. Taken together, the document reflects Berlin’s push to modernize all branches of its military while keeping most of the money in Europe, Politico Europe reported.

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