BERLIN (dpa-AFX) – One year after the announcement of a 100 billion euro investment in the German army, the German defense sector looks to the future with optimism, while expressing verbal criticism Covered. “We are confident that we are now getting large-scale orders,” Hans-Christoph Atzpodien, managing director of the German Security and Defense Industry Association (BDSV), told Archyde.com. German press agency. Industry is ready as a partner of the Bundeswehr and can get under way quickly. “Companies are very motivated, especially since some of them have already taken risks as entrepreneurs”.
Besides the so-called special fund, it is also important to increase the regular defense budget, says Atzpodien. On February 27, 2022, Chancellor Olaf Scholz announced, against the background of the war of Russian aggression against Ukraine, an “epochal change” in which 100 billion euros would be made available to the German army. . Only a small part of this money has been used so far. No orders for tanks or artillery were placed until early 2023.
This is partly due to the fact that last year a provisional budget management was first applied, which made it difficult to award new orders. “It is regrettable that so far there have been few orders placed by the special fund with German companies, because politicians were very busy last year with budgetary questions, but no one can’t do anything about it,” explains Atzpodien. He expects things to move in the coming weeks and months when it comes to ordering.
Another representative of the defense industry, who does not want his name and that of his company to be mentioned, is on the other hand frustrated by the long wait for orders. A year ago, the Department of Defense promised quick action and demanded quick delivery in hastily arranged online meetings with the arms industry, the official recalled. But little has happened. “The Bundeswehr’s supply system is still dormant. It is braked and blocked.” Everything takes way too long. Another industry representative agrees: “Nothing goes fast – it’s as always, despite the changing global situation.”
In public, armament managers present themselves differently. It’s also because the Bundeswehr is their biggest customer – which they don’t want to alienate with authentic but non-controversial statements.
The representative of the Atzpodien association stresses the urgency of investing in the Bundeswehr. “As a society, we should recognize the need to spend even more on our security and thus protect our democracy and Europe as a whole.” The war in Ukraine has shown the urgency of securing our own peace.
Atzpodien is relieved that SPD politician Boris Pistorius is now in charge of the Defense Ministry. “He is looking to dialogue with us and is tackling important equipment issues.” In the partnership between the Bundeswehr and German arms companies, it is important to have a relationship of trust. This is also shown by Pistorius in his constructive attitude.
Germany’s largest arms company is Rheinmetall, which employs around 29,500 people, 15,000 of them in Germany. The company created jobs last year. Business is booming. This positive economic outlook is also due to growing demand from other NATO and EU countries. Russia’s attack on Ukraine has “once again generated stronger and faster demand”, says a Rheinmetall spokesman. “We have years of strong growth ahead of us.” We are approaching an order book of 30 billion euros, which should increase to 40 billion next year.
Rheinmetall is one of the few companies to have already obtained a small order from the special fund. It was protective equipment for soldiers. With regard to future orders from the Federal State, it reads: “We expect large orders in the field of ammunition, combat vehicles or further digitization”.
At handgun maker Heckler & Koch, the workforce is also up and the company is doing better business – not because of the special fund, but because of the general increase in arms spending within of NATO and the EU. For example, Norway and Lithuania – neighboring countries of Russia – received assault rifles. “In order to be able to react adequately to the increased interest of European countries in security, we have already increased our staff in recent years, invested in capacity expansions and significantly increased our stock of raw materials”, says the chairman of H&K, Jens Bodo Koch./wdw/DP/he