Germany is set to channel €26.5 billion into modernising troop gear and expanding its fleet of wheeled armoured vehicles over the next decade, according to a finance ministry document seen

by Reuters.

Nearly €19 billion of the package will fund the FASER programme, a wide-ranging overhaul of uniforms and personal equipment. The effort comes as Berlin targets a significant expansion of the Bundeswehr, aiming to grow the force to about 460,000 personnel by the mid-2030s—up from an estimated 280,000 today.

A further €7.5 billion is earmarked through 2037 for new wheeled armoured vehicles. Parliamentary sources told Reuters the procurement will likely include between 3,000 and 5,000 Boxer vehicles, jointly manufactured by Rheinmetall and KNDS.

The investment push follows Chancellor Friedrich Merz’s successful bid to exempt defence spending from Germany’s strict debt-brake rules, enabling faster military procurement. With these measures, total defence spending for 2026—including special funds—is projected to reach €117.2 billion.