BERLIN: The German army must undergo significant organizational and personnel reforms to effectively utilize increased defense 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 defense investment from the rules that cap borrowing.

The Bundesrechnungshof report highlights that despite relaxed debt rules, the Bundeswehr must prioritize its core mission of national and alliance defense 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 defense spending.

Key recommendations include a thorough review of tasks, prioritization 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 analyzes, 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 defense spending,” Scheller said.