(Bloomberg) -- Shares in European defense companies are hitting new records after Germany’s lawmakers approved about €2.5 billion ($2.6 billion) worth of weapons and equipment orders for the armed forces.

The decision, made late Wednesday in parliament’s last regular budget committee session before the Feb. 23 snap election, lifted UBS AG’s basket of European defense stocks to a record high on Thursday, up as much as 1.7%. The basket has risen almost 9% already this year, adding to its 53% surge in 2024.

The latest measures are part of a rearmament push that Chancellor Olaf Scholz initiated after Russia’s attack on Ukraine and are being financed out of a special off-budget fund of about €100 billion.

“Germany’s accelerated defense procurement ahead of a potential snap election highlights what we expect will be a broader trend of rising military spending across NATO,” said Patrick Armstrong, chief investment officer at Plurimi Wealth, which owns shares in French firm Dassault Aviation SA.

“This bodes well for defense contractors, as governments prioritize military readiness and self-sufficiency over budget constraints,” he said.

Shares in Germany’s Rheinmetall AG rose as much as 2.2% to a record high, bringing this year’s gains to 23%, while Hensoldt AG gained 2.5% and Renk Group AG climbed more than over 4%. France’s Dassault Aviation SA rose 2.3%. Share valuations for Rheinmetall as well as Dassault have also surged to record peaks.

The purchases approved by parliament will include part of a new €1.8 billion communication system for the Bundeswehr, €417 million in infantry supplies, and around €100 million for anti-tank arms and a weapon station, according to people familiar with the matter who asked not to be identified.

Defense Minister Boris Pistorius described the purchases as “important” in comments made earlier Wednesday before a visit to a parliamentary defense committee.

The Budget Committee also approved state guarantees to help Thyssenkrupp Marine Systems win a €4.1 billion contract to build three Type 209 submarines for Argentina, as well as replacement parts and training.

Shares in Thyssenkrupp AG rose more than 2%.

(Updates with share prices, Armstrong’s quote and chart)