Germany halts €262M military fuel tank deal over soaring costs and no-bid concerns
Budget lawmakers from Germany's center-right Union bloc and the center-left SPD in the Bundestag have temporarily halted a Defense Ministry procurement project for diesel fuel tank containers, citing sharp cost increases, according to a report in Bild (Monday edition).
Under a draft proposal from the Federal Finance Ministry, the Bundeswehr was set to finalize an amended contract with a machinery manufacturer for 902 tank containers at a total cost of around €262.67 million including VAT—putting the per-unit price at roughly €291,000. In a previous procurement deal in 2021, the military had purchased 153 containers for €21.8 million, equivalent to about €142,000 per unit.
The containers are scheduled for delivery by 2029 and are intended to support the Lithuania Brigade as well as broader troop logistics. The underlying framework agreement could ultimately be expanded to cover up to 4,200 units, with a contract ceiling of approximately €902 million.
"This price explosion is outrageous," a member of the Budget Committee told Bild. CDU budget policy spokesman Andreas Mattfeldt added in the same report: "We're seeing an arms procurement inflation with far too little competition. We must take decisive action now to ensure we still have financial flexibility in 2029—and don't end up regretting that we didn't hit the brakes in 2026."
A Defense Ministry spokesperson, responding to Bild's inquiry, stated: "We ask for your understanding that, as a matter of principle, we do not comment on the details of planned procurement projects before the German Bundestag has given its final approval."
