German Parliament's military ombudsman Hans-Peter Bartels has revealed that the country's army is operating with fewer personnel, and obsolete equipment.
Bartels was quoted by Deutsche Welle as saying: "This planned shortage is jeopardising education, training and field missions. We are short of almost everything. The army is at the turning point. It cannot take more cuts."
The German Army is reportedly facing a shortage of soldiers for a diverse range of multi-national operations, including the air campaign against ISIS in Syria, a peacekeeping mission in Mali, and the new Nato fast-response unit.
Bartels has urged an increase in the military budget from 1.16% of the national GDP to at least 1.2%, reported the publication.
In 2015, the German Parliament allocated €33bn for the defence sector, and is currently planning for an increase of €2bn for 2016. However, the funds cannot accommodate the army's needs.
The army employs 177,000 soldiers, roughly 600,000 less than at the end of the Cold War.
The German Ministry of Defence (MoD) recently recalled its Tornado reconnaissance jets from Syria, citing technical issues with the aircraft.
Media reports had previously emerged on a number of deficiencies in the German air force.
Germany reportedly intends to invest roughly €130bn in army infrastructure and equipment over the next 15 years in response to Bartels statement.