Berlin, April 21, 2025 — Germany is undertaking its most sweeping military reforms in decades, marking a decisive break from its post-Cold War defense posture and signaling a new era for the Bundeswehr. Driven by mounting security threats, especially from Russia, and a shifting political landscape, the reforms encompass dramatic increases in defense spending, structural overhauls, and a renewed focus on technological innovation and readiness.
A New Era of Defense Investment
The most visible sign of Germany’s commitment to revitalizing its armed forces is the unprecedented scale of financial investment. Chancellor-elect Friedrich Merz’s incoming government has unveiled a €500 billion fund for defense and infrastructure, dwarfing the previous €100 billion special fund established in the wake of Russia’s invasion of Ukraine.
This new fund is not a one-off measure; it is backed by constitutional amendments that exempt defense spending from Germany’s traditional debt brake, allowing the government to respond flexibly to security needs without being constrained by fiscal austerity.
The Bundestag and Bundesrat passed these reforms with overwhelming support, reflecting a broad political consensus on the need to modernize and strengthen the Bundeswehr. The amendments also grant federal states greater borrowing flexibility and lift previous limits on defense spending, which had been capped at 1% of GDP.
Structural Overhaul: Central Command and Cyber Warfare
Beyond financial measures, the German Defense Ministry has launched a comprehensive restructuring of the military’s command and operational structure. Defense Minister Boris Pistorius announced the creation of a new central command, merging previously separate structures for domestic and foreign deployments to streamline decision-making and eliminate redundancies.
A cornerstone of the reform is the establishment of a fourth branch of the armed forces: the Cyber and Information Domain Service (CIR). This branch will operate alongside the army, air force, and navy, and is tasked with defending against cyberattacks, protecting critical electronic infrastructure, and countering disinformation and hybrid threats. The CIR’s expanded role reflects the growing recognition that modern warfare extends far beyond conventional battlefields.
Pistorius has repeatedly emphasized the need for a “war-ready” military, underscoring that Germany must credibly deter any potential aggression against NATO territory. “No one should have the idea of attacking us as a NATO territory. We have to convey this credibly and truthfully,” Pistorius stated during the reform’s announcement.
Military Service: Voluntary Model with an Eye on the Future
A significant component of the reform debate has centered on military service. While calls to reinstate compulsory conscription have been contentious, the Defense Ministry has proposed a new voluntary model. Under this plan, all 18-year-old German citizens will receive a questionnaire assessing their motivation and fitness for service.
Feedback will be mandatory for men, and about 50,000 respondents will be invited for medical examinations. The goal is to enlist around 5,000 volunteers annually for service periods ranging from six to 23 months, with the possibility of scaling up or introducing mandatory service if volunteer numbers fall short.
This approach reflects a compromise within the ruling coalition, balancing the need for increased personnel with concerns about cost, infrastructure, and personal freedoms. The opposition Christian Democrats and the far-right Alternative for Germany (AfD) have advocated for more robust forms of compulsory service, but the government is proceeding cautiously, aiming to enact legal changes before the autumn 2025 Bundestag elections.
Economic and Strategic Implications
The reforms are expected to have a ripple effect beyond the military. By channeling hundreds of billions of euros into defense and infrastructure, the government aims to spur economic growth, drive technological innovation, and revitalize Germany’s industrial base1. The defense sector is poised to become a key driver of productivity, with investments in advanced weaponry, cyber capabilities, and logistics.
Strategically, the reforms represent a fundamental shift in Germany’s approach to national and collective security. After years of defense austerity and reliance on allies, Berlin is positioning itself as a leading military power in Europe, capable of both defending its own territory and contributing meaningfully to NATO operations.
Challenges Ahead
Despite broad political support, challenges remain. The Bundeswehr faces significant infrastructure gaps, recruitment hurdles, and the complex task of integrating new technologies and doctrines. Ensuring that increased spending translates into real capabilities will require sustained political will and effective management.
Yet, as Defense Minister Pistorius and Chancellor-elect Merz have made clear, the stakes are high. With Russia identified as NATO’s “number one threat,” Germany’s military reboot is not just about national defense—it is about securing the future of European security in an increasingly uncertain world.
As these reforms take shape, Germany stands at the threshold of a new era—one defined by ambition, innovation, and a renewed commitment to the principles of deterrence and collective defense.