German lawmakers are widely expected to approve a defense spending plan worth more than 50 billion euros ($58.6 billion) on Wednesday as the country moves to bolster its national security capabilities in the wake of the war in Ukraine.

Politicians will discuss defense procurement proposals on Wednesday, according to agenda documents for a meeting of the Bundestag’s budget committee. The committee can either approve or block major purchases.

According to German media reportsProposed spending expected to be adopted includes 22 billion euros for personal protective equipment and clothing for military personnel, and about 10 billion euros to upgrade infantry fighting vehicles, air defense and missile systems.

European defense stocks rose on Wednesday morning as investors awaited the outcome of a meeting that is widely expected to lead to the approval of a new military budget.

The Stoxx European aerospace and defense index was up 1.2% as of 11:12 a.m. in London (6:12 a.m. ET), with German defense giant Renk up 2.8%, Hensoldt up 2.4% and Rheinmetall up 1.8%.

stocks in this industry sold on tuesdayThe overall index fell 1.8% during the session as hopes grew for a peace deal to end the war in Ukraine.

The Stoxx Europe Aerospace and Defense Index has soared more than 50% since the start of the year, with some regional defense companies more than doubling in value as regional governments and the NATO military alliance pledged to increase defense spending.

It is widely expected that these commitments will Improving profits for European companiescompanies headquartered in the region have reported Record backlog of orders and Significant revenue growth.

German companies in particular have been beneficiaries of a regional defense boom following the country’s government’s actions reform historical legislation Pave the way for increased security spending. arms manufacturers RheinmetallFor example, its stock price has soared 150% this year.

“Germany’s roughly €50 billion defense procurement plan, widely regarded as the largest single approval of defense equipment in the country’s postwar history, is expected to benefit publicly traded European defense giants such as Rheinmetall AG and Hensoldt AG, as well as, to a lesser extent, the broader European supplier base,” Dmitrii Ponomarev, product manager at VanEck, which manages defense ETFs, told CNBC on Wednesday.

They added that the move reflected “an overdue effort to rebuild military capabilities after decades of underinvestment.”

“Importantly, today’s decision does not change Germany’s previously agreed overall defense budget, but rather formalizes the signing of specific procurement contracts on behalf of parliament, effectively converting previously allocated funds into firm orders,” van Eyck added. “This is a step that investors have been waiting for, as it improves the industry’s current revenue visibility.”

Michael Field, chief equity strategist at Morningstar, told CNBC’s “Squawk Box Europe” on Wednesday that the news from Germany was expected to be “good news on a lot of fronts.”

“Usually these things take some time to get through government approval, but the process appears to be accelerating, which is good news for these companies,” he said, adding that the funding reportedly earmarked for military protective equipment suggests the German government will have to spend huge sums to catch up after years of underspending.

“I think it’s certainly good news. Is this all priced in? Today’s rise in share prices suggests it’s not quite the upside,” he added.

Field rated Rheinmetall one of Europe’s “top” defense companies, noting that the company is one of the world’s largest arms manufacturers.

“If you need a specific weapon, you basically have to go to them,” he told CNBC. “I think more companies like this… are trying to develop their own expertise, which will hopefully (see Europe) becoming a defense hub globally.”