The Bundeswehr must be repaired. To the great delight of arms manufacturers, the government of Social Democrat Olaf Scholz continues to insist on the needs of the German army, marked according to him by chronic under-investment. After the start of the war in Ukraine, Berlin therefore undertook to dedicate the equivalent of 2% of German GDP to Defense in the future, and a special envelope of 100 billion euros was promised. However, these measures seem to greatly benefit industrialists across the Rhine.
“The reputation of the German armaments industry has rarely been so good, analyzes the Berlin correspondent of the Swiss newspaper The weather. Since the invasion of Ukraine and the announcement by the government of Olaf Scholz of a ‘change of era’ and record investments to upgrade the Bundeswehr, this sector long frowned upon among the population is booming.”
The Rheinmetall group, in particular, plans to double its turnover linked to orders from the German federal army, to reach a total of 4 billion euros per year for the coming decade. The Düsseldorf company, whose share price has risen by 150% since the start of the war, plans to create up to 3,000 new jobs. And she is not the only one to find herself in a favorable situation: “The entire German armaments industry benefits from this very strong demand [et des investissements publics] ”.
American planes, Israeli drones
With nearly 130,000 employees estimated, the sector has never been in bad shape, qualifies the Geneva title. “Despite a fairly restrictive export policy, Germany breaks records every year in terms of arms sales and in 2020 ranked fourth in the world.” But this industry had long been “neglected by the authorities”.
It can now count on vast federal investment plans, but not only: its foreign customers are anxious to modernize their arsenal in a tense geopolitical context. “The UK, for example, has ordered 100 Boxer-type wheeled armored vehicles.”
For The weatherGerman companies could “not enough to cover the huge upgrade needs of the Bundeswehr”. With this in mind, Berlin has also turned to foreign manufacturers. “The government has confirmed, among other things, the purchase of American Chinook transport helicopters and F-35 fighter jets, as well as Israeli armed drones.”