Economist Moritz Schularick has launched a scathing critique of Germany’s defence‑budget strategy, warning that the current plan to spend roughly €500 billion by the end of the decade will leave the country just as dependent on the United States as before.
Call for a strategic shift
Schularick, president of the Kiel Institute for World Economy, says the programme lacks a coherent vision that would combine higher spending with genuine security gains, economic opportunities and technological advancement. He stresses that “the plan is currently to spend around €500 billion by the end of the decade, ending up just as dependent on the Americans as today.”
The economist points to the possibility of “skipping an entire generation of technology,” likening the potential shift to how China leap‑frogged in electric‑vehicle development. Instead of buying back 1990s‑era tanks—some costing €25 million—he argues that funds should be redirected toward the next generation of defence technology.
According to Schularick, a drone that costs about €50 000 could disable a €25 million tank, illustrating the stark cost disparity between traditional and emerging systems. He calls for rapid development of autonomous military vehicles and a decisive move toward unmanned platforms.
Schularick’s remarks come amid ongoing debates about the effectiveness of Germany’s defence procurement and the broader strategic implications for European security.
Frequently Asked Questions
What is the total amount planned for defence spending by the end of the decade?
The current plan foresees spending about €500 billion on defence up to the end of the 2020s.
How much of the defence budget is currently allocated to older, manned systems?
According to Schularick, roughly 95 % of the allocated funds are earmarked for manned legacy systems.
What alternatives does Schularick propose for the defence budget?
He suggests investing in next‑generation technology, such as autonomous military vehicles and unmanned systems, to replace expensive, outdated hardware and to create industrial growth opportunities.
What do you think are the biggest challenges in reshaping Germany’s defence procurement strategy?
