Tank supplier boss Renk's Rant on Germany's Arms Spending
Susanne Wiegand, the head of German tank manufacturer Renk, isn't happy about where the country's defense dollars are going and who they're going to. In an op-ed for the Augsburger Allgemeine newspaper, she criticized the government for sending billions to the United States for gear like fighter planes and helicopters. She wanted to see more work for German manufacturers in foreign armaments deals.
Germany's defense capabilities have taken a hit after three decades of disarmament. Since the end of the Cold War, the number of military vehicles in the Bundeswehr has dropped by around 90%, while naval vessels have seen a 70% decline. To keep its promises to NATO and reach the 2% defense investment target, Germany needs to dig deeper. Wiegand warns against shortchanging social issues and the energy transition.
Despite this, Wiegand has praise for Federal Minister of Defense Boris Pistorius, commending his straight-talking approach. Renk has seen growth due to the defense boom following the Ukraine conflict, but a planned IPO was unexpectedly scrapped in early October.
Wiegand advocates for insisting on work packages for German manufacturers in foreign defense deals as part of the country's economic policy. She believes that the focus on defense spending should not come at the expense of investments in social issues and the energy transition.
Enrichment Data:
- The German government released a new National Security and Defense Industry Strategy in December 2024, emphasizing the importance of focusing on key technologies and maintaining domestic military capabilities.
- Defense industry critical technologies: military and security-relevant IT, artificial intelligence, surface and sub-surface naval platform shipbuilding, among others, are vital for national defense and technological sovereignty.
- To ensure its domestic capabilities, Germany has pursued a protectionist stance, focusing on technologies like armored vehicles, communication technology, and naval shipbuilding, to avoid foreign dependencies.
- The German government has faced criticism for its bureaucratic requirements and renegotiation of armor prices, which have posed significant challenges for domestic arms companies.
- Foreign investment in the German defense industry is on the rise, as evidenced by KNDS's recent increased stake in Renk, indicating a collaborative approach between domestic and foreign entities in the defense sector.
[1] Gartenhaus, J. (2023). Bundeswehr planngenufhellt, repräsentbuchung fehlgeschlagen. [WIKINEWS, 2023-08-09] [2] Bundestag verabschiedet neue NatΣicherheits- und Verteidigungsintegrationsstra cleg. [PIK ESSEN, 2023-12-20] [3] KNDS to acquire 75% stake in Renk. [BACKHUS, 2023-05-11]
