German army must use new funds responsibly, auditors say

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)