"A lot has been improved and a lot has been achieved, but we are still not there and there is still a lot to do," commissioner Eva Hoegl told reporters, amid a push by likely next chancellor Friedrich Merz to massively boost defence spending.

"I can say again this year that the Bundeswehr (armed forces) still has too little of everything," she said at the presentation of an annual report on the state of the military.

A 100-billion-euro ($109-billion) special fund established in the wake of Russia's invasion had supported initiatives to improve recruitment, develop infrastructure and speed up new weapons procurement, the report said.

But the results were in many cases "not yet visible, noticeable or measurable", while the special fund had largely been used up, it said.

"In order for the important projects started through the special fund to be completed or continued, an increase in the regular defence budget is essential," the report concluded.

Further investments to fix "far from sufficient" personnel numbers and sometimes "disastrous" army infrastructure were key.

The process of renewing the German military was similar to turning round a "tanker", Hoegl said in the report.

"It takes time to procure tanks, ships and aircraft or to modernise entire barracks," the report said.

The sense of urgency around the Bundeswehr has grown with the return of President Donald Trump to the White House.

Trump's direct overtures to Russian President Vladimir Putin to end the fighting in Ukraine have left Europeans worried they can no longer rely on US security guarantees.

Merz has proposed a change to Germany's strict rules that limit borrowing to ramp up defence spending.

The plan however faces significant hurdles to make it through parliament with the necessary two-thirds majority, as other parties have appeared reluctant to back it.