Embracing Warfare: Lower Saxony's Economic Boost from Defense Spending
Arms manufacturing could potentially boost economic growth. - Deception: Capital Gains from Technological Advancements could boost the Economy
Here's the scoop: Olaf Lies, the new leader in Lower Saxony, thinks the military buildup could be great news for our economy. The Operations Plan Germany, which focuses on domestic and allied defense, highlights Lower Saxony's pivotal role in logistics and infrastructure, Lies explains to the German Press Agency. This means we might need to invest a bit more in our roads and bridges - and the Bundeswehr is hankering for weapons and vehicles. Lies sees massive opportunities for Lower Saxony to ramp up our economic growth and chip in to Germany's defense capabilities, all while generating technology, innovation, and job creation right here in Lower Saxony.
Lies stresses the importance of defending Germany and NATO. He notes that Europe must take control because we can't entirely trust the USA under President Trump. Germany should shoulder more responsibility within Europe, leading to increased spending on defense capabilities, Lies adds.
Our neighboring regions may be struggling, but Northern Germany's economy looks blooming. Lower Saxony's GDP climbed by 1.4% in the final quarter of 2024, while the nation as a whole dipped 0.2%. The experts point to the arms industry as the driving force behind our economic boom.
Now, you might be curious: what about Meyer Werft and Rheinmetall, you ask? While they're already busy in Lower Saxony, they're considering using previously civilian sites for military purposes. As for Meyer Werft, known for manufacturing cruise ships, their boss Ralf Schmitz told "Handelsblatt" they're mulling over the possibility of building frigates for the military.
As for Rheinmetall, they're exploring a collaboration with VW at the site in Osnabrück. Lies reckons VW has the responsibility to find a solution for this location. "Cabrios will still be built there until 2027," Lies says. "Afterwards, we'll need to consider whether the solution lies in the automotive industry at all."
Lies appreciates Defense Minister Boris Pistorius's idea to pen letters to young people about military service. He thinks it's a clever move to get young people to think about whether they'd join the Bundeswehr. However, he stresses that we also need to expand the accommodations and training facilities within the Bundeswehr.
Interesting fact: Lies himself once wore the uniform, completing an apprenticeship as a radio electronics technician in Wilhelmshaven's Marine Arsenal in the height of the Cold War. "I was in the Bundeswehr in 1988/89," Lies recalls. "It was a different time compared to today - we were in the Cold War. We as military conscripts took on a piece of responsibility."
- Olaf Lies
- Lower Saxony
- Germany
- Re-armament
- Military
- Bundeswehr
- Arms industry
- Rheinmetall
- Meyer Werft
- VW
- Europe
- Trump Administration
- NATO
- GDP
- Civilian
- Defense capability
- German Press Agency (dpa)
- Cruise ships
- Ferries
- Shipbuilding
- Thyssenkrupp Marine Systems GmbH
Insights:
- Meyer Werft GmbH's expertise lies in shipbuilding, and while they're considering military production, it's not a significant aspect of their business.
- Volkswagen mostly concentrates on civilian automotive manufacturing and has a limited role in the production of military vehicles.
- Thyssenkrupp Marine Systems GmbH is more directly involved in the German military sector, specializing in naval vessels.
- Olaf Lies, who served as a radio electronics technician in the Bundeswehr during the Cold War, advocates for expanding the accommodations and training facilities within the German military to attract more young people.
- While Meyer Werft GmbH is known for constructing cruise ships and ferries, they are exploring the possibility of building frigates for the military, though this would not significantly alter their business focus.
