A prominent trade union leader is advocating for a special tax levied on the extraordinary profits of arms manufacturers, sparking debate within political circles. Daniel Friedrich, district head of the IG Metall trade union, voiced his concerns in an interview with the Süddeutsche Zeitung, highlighting record profits being reported by companies like Rheinmetall, Hensoldt, Leonardo and Renk since the onset of the conflict in Ukraine.
Friedrich argued that these gains are largely attributable to increased state contracts and the prevailing geopolitical climate, rather than stemming from innovation or technological advancement. He described the current situation as a “license to print money” and contended that such profits should be subject to greater scrutiny.
The proposal centers on implementing a “super-profit tax” specifically targeting profits exceeding an average of 20 percent growth over the previous five years, with an additional 50 percent tax applied to the excess.
Friedrich emphasized the need for companies benefiting from increased military spending to contribute fairly to the public good, particularly as discussions regarding potential cuts to social welfare programs are underway. He expressed reservations about the juxtaposition of soaring defense investments alongside the celebratory performance of arms manufacturers, suggesting a responsibility for these corporations to reciprocate the state’s substantial financial commitment. The concept of this tax is also garnering support from politicians within the SPD, Green Party and Left Party factions.
