Germany is significantly accelerating its military procurement process with new legislation designed to streamline bureaucracy and rapidly bolster its defense capabilities. The enactment of the Bundeswehr Procurement Acceleration Law represents a substantial expansion of a 2022 initiative, extending its authority through and broadening its scope to encompass all Bundeswehr needs, including civilian contracts and medical supplies.
The move comes as Germany aims to become the conventionally strongest army in Europe, a goal requiring substantial investment and a more agile procurement system. Approximately €108 billion will be spent on national and alliance defense in , with projections reaching €152 billion by , potentially achieving the NATO target of 3.5% of GDP dedicated to defense. The legislation is a direct response to perceived geopolitical threats, with Russia cited as the “most immediate threat to peace and security.”
The core of the new law centers on reducing administrative hurdles that have historically plagued German arms procurement. Value limits for direct awards – bypassing the traditional tendering process – have been significantly raised. Previously capped at €15,000, the limit has been increased to €50,000 and to €443,000 for contracts directly strengthening defense capabilities, with a €1 million threshold for construction projects. This shift is intended to expedite the acquisition of critical equipment and infrastructure.
Beyond raising value thresholds, the law also temporarily suspends mandatory contract fragmentation (Losvergabe) until the end of . This means larger contracts can be awarded as single packages, further simplifying the process. Government-to-government sales are also being facilitated, allowing for quicker acquisitions from allied nations without the need for open bidding, provided it aligns with collaborative efforts with partner armed forces.
The German government anticipates a reduction in bureaucratic burden, estimating savings of around €23 million for the federal government and €6.9 million for the economy as a whole. Economy Minister Katherina Reiche emphasized the need for Germany to become “technologically and industrially stronger than potential aggressors” to ensure peace, highlighting the importance of investment in areas like air defense, satellite capabilities, drones, autonomous systems, and artificial intelligence.
The legislation builds upon the 2022 Bundeswehr Planungs- und Beschaffungsbeschleunigungsgesetz (BwPBBG), significantly expanding its remit. The original law focused primarily on military hardware; the revised version extends its application to all Bundeswehr requirements, encompassing civilian needs such as medical supplies and construction projects for barracks.
Chancellor Friedrich Merz stated that the new rules will ensure soldiers receive the equipment they need to build the strongest conventional army in Europe. Defense Minister Boris Pistorius stressed the importance of close collaboration with the security and defense industry to ensure effective implementation and scaling of production. He noted that the law aims to create “significantly more tempo” in procurement.
Germany is increasingly looking to international partners to fill critical capability gaps. The country is procuring US-made F-35 fighter jets, Tomahawk cruise missiles, and Patriot air defense systems. Simultaneously, Germany is investing in domestically produced systems, including 20 new Eurofighter jets and 200 additional Puma infantry fighting vehicles. A layered air defense system is a key priority, incorporating the Arrow 3 ballistic missile defense system and the German-made IRIS-T SLM system.
The speed of implementation and the ability of the German defense industry to scale production will be crucial factors in determining the success of the new law. The legislation represents a significant policy shift, signaling a commitment to prioritizing defense spending and streamlining the procurement process in response to a changing geopolitical landscape. The impact on German industrial firms involved in defense production is expected to be positive, providing greater certainty and opportunities for growth.
Recent commentary on Vergabeblog.de, published on , described the new law as “Turbo für die Truppe 2.0” (Turbo for the Troops 2.0), while a previous article from , highlighted the initial draft of the legislation and its focus on accelerating Bundeswehr procurement.
