Reuters: Germany to spend 7 billion euros on armored vehicles as part of rearmament
The German Bundeswehr Armed Forces in training (Photo: EPA)

The German government plans to order 424 new armored combat vehicles (ACVs) for almost 7 billion euros, reports Reuters citing documents from the Ministry of Finance.

The Budget Committee of the lower house of parliament is expected to approve this agreement for the army in the coming days.

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The main part of the contract for the Bundeswehr is a framework agreement with the General Dynamics defense group for the development and purchase of 274 reconnaissance vehicles worth about EUR 3.5 billion. The first deliveries are scheduled for 2028.

In addition, it is possible to purchase another 82 reconnaissance vehicles, which could increase the volume of the first order to 356 units worth up to EUR 4.6 billion.

The second project involves the purchase of 150 Schakal wheeled armored infantry fighting vehicles (IFVs) worth about €3.4 billion. Germany will sign the contract for the Schakal through the European defense procurement agency OCCAR with Artec GmbH, a joint venture between KNDS and Rheinmetall.

The delivery of the Schakal infantry fighting vehicles is scheduled for the period from 2027 to 2031. At a later stage, the procurement of these vehicles can also be expanded, with the possibility of purchasing up to 200 additional units.

The new contract is part of a large-scale rearmament program for the Bundeswehr. In June, the German authorities announced about plans to spend almost €650 billion on military needs over the next five years. This is more than double the current level of spending.

Chancellor Friedrich Merz set a goal to make the Bundeswehr "the strongest army in Europe," for which purpose the constitutional restrictions on budget borrowing were changed in March.