BERLIN – Chancellor Friedrich Merz of Germany announced a commitment to significantly bolster the country's military capacity, pledging to "provide all necessary financial resources" to make Germany's armed forces the most formidable in Europe.

This declaration was made during his inaugural address to the Bundestag on Wednesday, marking a critical shift in Germany's defense policy in response to escalating threats, particularly from Russia.

In his speech, Merz remarked, "Strength deters aggression; weakness invites aggression," underscoring the urgency for Germany to adopt a more proactive role in continental defense.

The federal government has recently reformed strict debt regulations to enhance military investment, enabling expenditures that exceed 1% of Germany's GDP to bypass the constraints of the constitutional debt brake, a measure that previously hindered defense allocations.

This reform allows for a more robust financial framework to meet NATO's defense spending target of 2% of GDP, a benchmark that has been a topic of discussion among NATO member states.

Following Russia’s full-scale invasion of Ukraine, the previous government led by Olaf Scholz acknowledged the potential for Germany to evolve into the largest conventional army in NATO's European sphere.

However, the envisaged transformation faces challenges; Defense Minister Boris Pistorius stated that the military currently lacks adequate personnel to fulfill its operational requirements.

As of the last annual report from the German ombudsman for the armed forces, troop numbers remained stagnant at around 181,000, with a target of increasing to 203,000 by 2031.

To address recruitment challenges, Pistorius outlined initiatives aimed at enhancing the appeal of military service and boosting reserve forces through a voluntary service scheme akin to models used in other European countries, like Sweden.

He indicated that should volunteer recruitment fail to meet targets, Germany might consider reinstating a system of mandatory military service, which was suspended in 2011, though the legal framework for conscription remains intact.

On a more positive note, he observed a 20% increase in military job applications during the first quarter compared to the prior year, suggesting a growing interest among younger candidates.

The proposed military service strategy involves an assessment questionnaire for young Germans, which would guide outreach to potential recruits based on their expressed willingness and capabilities regarding military service.

In a broader context, the European Commission is also focusing on strengthening defense capabilities across the continent.

Plans are underway to unveil new initiatives in 2026 aimed at inducing investments into high-tech defense startups and scaleups.

This is part of a comprehensive strategy to position Europe as a leading environment for technology-driven companies, particularly in sectors related to defense and innovation.

The Commission’s upcoming EU Startup and Scaleup Strategy document includes the development of specific investment instruments tailored for high-tech defense enterprises.

Discussions have initiated on the allocation of funds toward dual-use technologies, which integrate both civilian and defense applications, particularly in artificial intelligence and cybersecurity.

This strategic direction aligns with earlier proposals for a European armament technological roadmap which focuses on funneling investments into advanced technological capabilities derived from civilian innovations.

Key mechanisms include a proposed "landing clause" for the Research and Development Defence Fund, facilitating a smoother transition of existing cohesion fund allocations toward innovative defense-related projects.