UPDATE German military plans investments in tanks and air defence

Berlin (dpa) - Germany plans to invest tens of millions of euros in new tanks and an air defence system after an increase in the defence budget was announced for 2017, sources told dpa on Saturday.The country will spend an eight-figure sum of euros on modernizing the Leopard 2 combat tank, the sources at the Defence Ministry said.A low nine-figure sum would be spent on a new tactical air defence system (TLVS), they added.Defence Minister Ursula von der Leyen placed emphasis on the increased spending and stricter quality guidelines in equipment projects in comments reported Saturday."We demand that the industry supply the German Army in a timely manner and free from defects, just as it does with private customers," the minister told Germany‘s Focus news magazine.She added that cost-effective use of public funds and the best possible protection for soldiers were of the utmost concern for her.The decision to spend more money on defence was prompted by the altered security situation, which includes Russia‘s intervention in Ukraine, the increased threat from terrorism and "instabilities around Europe."Chancellor Angela Merkel‘s cabinet agreed to raise defence spending from 34.3 billion to 39.2 billion euros (38.5 billion to 44 billion dollars) by 2020.The German Army, or Bundeswehr, has criticized the increase as too little, saying it falls well below NATO‘s national defence expenditure target of 2-per-cent of gross domestic product (GDP).Germany‘s most popular tabloid Bild on Saturday cited confidential ministry papers that showed that the planned increase would not be enough to cover the costs of the new tanks and air defence system.Von der Leyen has separately announced plans to increase the Bundeswehr by 14,300 soldiers and 4,400 civilian employees over the next seven years. Seven thousand of the posts are to be created immediately.