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German army must use new funds responsibly, auditors say
Published by Global Banking & Finance Review®
Posted on May 27, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on May 27, 2025
1 min readLast updated: January 23, 2026
The German army must implement reforms to use increased defence funds responsibly, focusing on core missions and reducing administration, as per the Bundesrechnungshof report.
By Maria Martinez
BERLIN (Reuters) - The German army must undergo significant organisational and personnel reforms to effectively utilise increased defence spending, the country's federal audit institute said on Tuesday in a special report.
In March, Germany's parliament approved plans for a massive spending surge, largely removing defence investment from the rules that cap borrowing.
The Bundesrechnungshof report highlights that despite relaxed debt rules, the Bundeswehr must prioritise its core mission of national and alliance defence while reducing administrative processes.
"'Whatever it takes' must not become 'money doesn't matter!'" said Kay Scheller, president of the institute, emphasising the need for responsible financial management and increased efficiency in defence spending.
Key recommendations include a thorough review of tasks, prioritisation of defense-critical duties, and restructuring the Bundeswehr to focus on "more troops, less administration."
The Bundesrechnungshof recommends careful justification of financial needs, conducting efficiency analyses, as well as maintaining a balance between time, cost and quality.
"It is crucial that these funds are used responsibly to significantly increase the effectiveness of defence spending," Scheller said.
(Reporting by Maria Martinez, Editing by Friederike Heine)
The report recommends a thorough review of tasks, prioritisation of defense-critical duties, and restructuring the Bundeswehr to focus on 'more troops, less administration.'
'Whatever it takes' must not become 'money doesn't matter!' according to Kay Scheller, highlighting the need for responsible financial management and increased efficiency in defense spending.
Germany's parliament approved a massive spending surge, largely removing defense investment from the rules that cap borrowing, necessitating effective utilization of these funds.
The Bundesrechnungshof advises maintaining a balance between time, cost, and quality while justifying financial needs and conducting efficiency analyses.
The Bundeswehr must prioritize its core mission of national and alliance defense while reducing administrative processes to effectively utilize increased defense spending.
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