Additional military materiel spending on such a scale would also mean a
massive boost to the German (and also European) defence industry that would
receive the bulk of additional defence contracts.
In 2014, Bundeswehr procurement accounted for 36% of the German defence and security industry’s
EUR 20.4 bn turnover (see chart 13).However, the macroeconomic impulse of
increased equipment spending can be expected to be rather minor, with
additional spending towards the NATO 20% target estimated at only around
0.1% of GDP between 2018 and 2024.
This also reflects the German defence and security industry’s relatively low weight from an economic perspective, with
a contribution of only around 0.5% to 1.1% of total German gross value added