Germany has unveiled a sweeping €80 billion rearmament plan that overwhelmingly favors European defense firms over American suppliers, igniting tensions across the Atlantic and fueling accusations that the United States is leveraging arms deliveries as a tool of economic coercion.
The confidential procurement blueprint, obtained by POLITICO, outlines 154 major defense projects scheduled for approval in the Bundestag between September 2025 and December 2026. The spending spree represents Berlin’s largest military modernization effort in decades, but it comes with a sharp rebalance: only 8 percent of the contracts—about €6.8 billion—will go to U.S. companies.
Europe First Approach
The biggest winners of Germany’s plan are domestic and European suppliers. Leading the list is the €26 billion F-127 frigate program, spearheaded by German shipbuilder TKMS, designed to bolster naval air and missile defense capabilities. The blueprint also includes a €4 billion order for Eurofighter Tranche 5 jets, additional Boxer armored vehicles, radar upgrades, and modernization of the Taurus cruise missile.
Air defense features prominently as well, with hundreds of millions set aside for additional German-built IRIS-T SLM systems, ship-launched interceptors, and short-range missile packages. Meanwhile, the troubled Eurodrone program, a joint project of Airbus, Dassault, and Leonardo, is receiving nearly €200 million to resolve its long-delayed “detect and avoid” system.
This “Europe-first” spending spree signals Berlin’s determination to strengthen continental defense autonomy, a longstanding ambition within the EU. “Germany is playing the long game,” said one defense analyst in Brussels. “The goal is to build a truly European defense ecosystem that doesn’t depend entirely on Washington.”
Washington’s Disappointment
For the United States, the shift is a setback. Between 2020 and 2024, Germany was one of Washington’s biggest customers, approving more than $17 billion in U.S. weapons purchases. That included record sales in 2023 as Germany scrambled to modernize in response to Russia’s invasion of Ukraine.
American defense giants like Raytheon, Boeing, and Lockheed Martin had grown accustomed to lucrative German contracts. In the new plan, their role is limited: roughly €150 million for torpedoes tied to Boeing’s P-8A patrol aircraft, and around €5.1 billion for Patriot missile systems supplied by Raytheon.
The rest of the €80 billion bonanza is directed to Europe—contradicting U.S. President Donald Trump’s claims earlier this year that the EU would purchase “hundreds of billions” in American arms under a transatlantic trade agreement.
Allegations of Blackmail
The German pivot has provoked a storm of suspicion. European officials and analysts accuse Washington of deliberately slowing arms deliveries to pressure allies into buying more U.S. systems.
Switzerland recently confirmed its Patriot missile order had been delayed, while several NATO partners have reported disruptions in delivery schedules. Even Ukraine, whose survival depends on U.S.-supplied air defense, has faced interruptions.
Publicly, U.S. officials cite production bottlenecks and prioritization of Ukraine. But critics argue the pattern looks deliberate. “This is not just about shortages,” said a senior analyst at Berlin’s SWP think tank. “It’s a way of reminding Europe that it still depends on American security guarantees—and that those guarantees come with a price.”
Some European lawmakers have gone further, accusing Washington of outright blackmail. They argue that by withholding or delaying key systems like the Patriot, the U.S. is creating urgency that forces allies to turn back to American suppliers rather than risk gaps in their defenses.
Europe’s Strategic Dilemma
Despite the bold procurement plan, experts caution that Europe cannot achieve defense self-sufficiency overnight. Critical gaps remain in high-end interceptors, electronic warfare, and long-range strike capabilities, areas where U.S. systems remain unmatched.
“Europe is building capacity, but it will take at least a decade before it can truly replace U.S. technologies,” said a defense consultant in Washington. “The Americans know this, and they’re exploiting that window to secure contracts now.”
Still, Berlin’s decision marks a pivotal moment. By prioritizing European suppliers, Germany is sending a clear message: it intends to anchor the EU’s defense industrial base, even if that risks clashes with its most powerful ally.
The debate goes beyond procurement. It touches on NATO’s future, the balance of power in transatlantic relations, and the question of whether Europe can ever be militarily independent from Washington.
For the United States, the stakes are high. Defense exports remain a cornerstone of its economy and global influence. For Europe, the challenge is equally daunting—balancing short-term dependence with the long-term vision of autonomy.
As one EU diplomat put it: “This isn’t just about missiles or frigates. It’s about sovereignty. And sovereignty always comes at a cost.”
