Germany Plans to Reduce Ammunition Purchases in 2027

Germany plans to reduce spending on ammunition procurement next year, reallocating part of its defence budget to other priorities.

According to Bloomberg, a draft federal budget for 2027, which is still subject to government revisions, allocates approximately €9.6 billion for ammunition procurement, down from €11 billion in 2026.

Of this amount, €7.7 billion is planned to come directly from the federal budget, while another €1.9 billion is expected to be provided through a special defence fund.

Despite the planned reduction, funding will remain significantly higher than in 2025, when Germany spent less than €4 billion on ammunition procurement.

A spokesperson for Germany’s Ministry of Defence declined to comment on individual items in the draft budget until its preparation is complete, but stressed that ammunition procurement “is and will remain a priority.”

According to the publication, a possible reduction in spending could negatively affect Rheinmetall, a defence contractor that is heavily focused on the production of conventional ammunition.

The German defence contractor has lost popularity among investors, and its shares have fallen by more than 30% this year.

The company, which for a long time was one of the key manufacturers of tank and artillery systems, is now being overtaken by companies specialising in drones, the effectiveness of which has been demonstrated in the wars in Ukraine and Iran.

Ammunition supplies to Ukraine

Rheinmetall recently began supplying artillery ammunition to Ukraine from its new plant in Unterlüß.

These are the latest artillery shells designated RH1412.

They are compatible with various 155mm artillery systems, providing a long firing range and demonstrating high target engagement effectiveness.