Defense Minister Advocates for State Investment in Arms Industry

The German Defense Minister has expressed strong support for the government's investment in the arms industry, emphasizing the importance of maintaining technological expertise and jobs within the country. He articulated the necessity of state involvement, particularly concerning companies that are pivotal to national security.

In alignment with this initiative, the Minister noted that discussions are underway regarding potential government stakes in prominent defense firms, including the armored vehicle manufacturer KNDS and the shipbuilder TKMS. The focus is on determining the level of state share and the timeline for such investments.

The Minister highlighted the current climate in the defense sector, which he described as generating significant profits. However, he cautioned against a potential inflation in defense prices, asserting that this outcome would not benefit anyone, including the industry itself.

Additionally, the Minister has not ruled out the possibility of halting the European Future Combat Air System (FCAS) project if progress does not materialize soon. He has planned meetings with his counterparts from France and Spain to address the ongoing conflicts among the industrial players involved. A decision regarding the project must be reached by the end of the year, or the partners will withdraw support.

As for the ambitious EUR100 billion project aimed at developing a successor to the Eurofighter, disputes have emerged between key industry stakeholders, including Dassault and Airbus. The Chief of Dassault has claimed exclusive leadership over critical components, suggesting that France could independently develop the aircraft.

Moreover, the future of the F-126 frigate project is uncertain due to significant delays attributed to the Dutch contractor Damen. The Minister stated that the delay spans at least 40 months and emphasized the need to find alternative solutions to mitigate financial losses.