German defence budget of up to €700 bn criticised as wasteful by top economist

The German government plans to spend up to 700 billion euros on new defence procurement, a move that has drawn sharp criticism from Moritz Schularick, president of the Kiel Institute for World Economics. Schularick described the plan as “completely insane” and warned that “nothing is more expensive for the population than the grotesque inefficiency in the armament sector.” He argued that investing billions in competing tank systems and legacy hardware is wasteful, noting that a 25‑million‑euro tank could be neutralised by a drone costing about 50 000 euros. Schularick called for a clear, future‑proof procurement strategy focused on high‑tech unmanned systems, which he says would also benefit the German economy.

Defence Minister Boris Pistorius has defended the spending as necessary for deterrence and the protection of democracy, but the debate highlights concerns over the scale of new debt and the allocation of resources within the Bundeswehr.