According to draft federal budget data, the German government foresees allocating approximately €9.6 billion ($10.4 billion) for ammunition procurement in 2027. This represents a marked drop compared to the €11 billion planned for 2026.
Under the draft proposal, €7.7 billion of the funding will be drawn directly from the general federal budget, with the remaining €1.9 billion secured through the special defense fund established following the war in Ukraine.
Despite the planned reduction, the projected figure remains well above 2025 levels, when Germany allocated under €4 billion for ammunition purchases.
A spokesperson for the German Ministry of Defense declined to comment on individual line items in the draft until budget negotiations are finalized, but emphasized that ammunition procurement remains a "top priority" for the government.
Potential Impact on Rheinmetall
The prospective budget cuts could weigh heavily on German defense giant Rheinmetall, which focuses heavily on conventional ammunition production. The company's shares have dropped over 30% this year amid shifting investor sentiment.
Long-established manufacturers of tank and artillery systems like Rheinmetall are increasingly seen as losing ground to firms focused on unmanned aerial vehicle (UAV) technologies, which have proven highly effective in recent conflicts in Ukraine and the Middle East.
Despite these headwinds, Rheinmetall continues to ship modern 155mm RH1412 artillery ammunition to Ukraine from its new production facility in Unterlüß. The high-precision, extended-range munitions are fully compatible with various 155mm howitzer systems currently in service with the Ukrainian armed forces.