24 September 2020

German government approves 2021 defence budget

by Ana-Roxana Popescu

The German government approved the 2021 federal budget and financial plan for 2020–24 on 23 September, including EUR46.81 billion (USD54.56 billion) for defence next year. EUR1.2 billion of this amount comes from a special stimulus package for early investments and digitisation created in light of the Covid-19 crisis, according to the draft budget released on 18 September.

Priority procurement projects include the replacement of Eurofighter Tranche 1. (Janes/Patrick Allen)

Large-scale procurement projects are set to continue, especially those in co-operation with France and Norway. Priority projects include the replacement of Eurofighter Tranche 1, the Persistent German Airborne Surveillance System (PEGASUS), a successor for Tornado bombers, naval helicopters based on the NH90, an airborne anti-submarine warfare capability, and a tactical air-defence system.

The 2020–24 financial plan foresees defence spending increasing to EUR46.83 billion in 2022 and then falling slightly to EUR46.13 billion in 2023 and EUR46.14 billion in 2024. This represents an increase from the March draft budget, which did not take into consideration the effects of Covid-19 and had defence spending stable at EUR45.64 billion between 2021 and 2024.

The 2021 defence budget will see a 3.9% nominal or 2.77% real increase compared with initial 2020 military expenditure of EUR45.05 billion.

The German government approved the 2021 federal budget and financial plan for 2020–24 on 23 Septembe...

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