Germany's Pistorius Calls for Increased State Role in Arms Industry
Politics

Germany’s Pistorius Calls for Increased State Role in Arms Industry

The German Defense Minister, Boris Pistorius, has advocated for a significantly expanded role for the state within the nation’s arms industry. In an interview with the Handelsblatt, Pistorius expressed firm conviction that state participation is necessary to safeguard critical expertise and employment opportunities within Germany.

He highlighted the importance of securing companies possessing key technologies as a primary driver for increased state involvement. Current considerations reportedly involve a close examination of defense contractor Krauss-Maffei Wegmann (KMW), known as KNDS and shipbuilding firm Thyssen-Krupp Marine Systems (TKMS). Discussions are underway regarding potential state equity stakes and the timelines for implementing such involvement.

Addressing concerns regarding procurement delays, Pistorius sharply criticized the significant setbacks impacting projects like the Fregatte 126 frigate, being constructed by Dutch company Damen Group. He emphasized the need to prevent financial losses resulting from a delay of at least 40 months attributed to the Dutch industry. The possibility of alternative solutions and interim arrangements is being explored, with a decision regarding Damen’s ability to retain the contract expected shortly.

The Minister affirmed the government’s commitment to accelerating arms procurement processes, noting a record number of contracts are currently being finalized. While acknowledging a sense of opportunity within the industry, Pistorius cautioned that performance has not consistently met expectations. He stressed the critical importance of ensuring contracts stipulate only commitments companies can realistically fulfill and that promised deliveries are consistently provided, underscoring the direct impact of delays on national security.