The Chairman of the Board of Rheinmetall, Armin Papperger, believes that Europe is not defensible despite the company’s billions in defense investments. According to a Süddeutsche Zeitung, he stated that neither the territorial area nor sea routes could be secured. He compared Europe to a weaker student on the playground, noting that previously, weaker students had to give their snacks to the stronger ones. Currently, however, many are trying to take those snacks away from Europe.
Papperger defended the armament investments against critics. According to Papperger, the next or the one after next year could see clashes with Russia against NATO. He questioned what would happen if Russia invaded the Baltic states in 2028, stressing that if measures were not taken, it would be too late.
After the German Federal Ministry of Defense canceled the multi-billion Euro frigate project F126 in June, the Rheinmetall CEO adopted a reconciliatory stance. He said that the defense minister’s abrupt cancellation of the F-126 had initially been a disappointment for him.
However, he subsequently discussed the issue with Defense Minister Boris Pistorius. Papperger said that Pistorius explained that due to the amount of joint work they were doing, he had to endure the situation. For him, the topic was now closed. He stated that in such situations, one should move on and start working on the next project. Rheinmetall has new ships to present, including a new frigate offered in Europe and the United States.
Regarding the recent, massive stock price drops for Rheinmetall, the manager stated that before the Ukraine war, the stock was trading below 100 Euros; subsequently, it had climbed to over 2,000 amid the Russian attack; and for many years, Rheinmetall had been the highest-performing stock in the defense sector globally. Papperger characterized the recent dip as unnecessary exaggeration, stating that the capital market acts like a diva.
Papperger is unbothered by the potential complete nationalization of the German-French partnership and competitor KNDS. He feels comfortable within the Dax index. He added that he has never experienced a situation where decisions move faster simply because the state is the owner. When asked whether the nationalization would negatively affect Rheinmetall, Papperger currently does not foresee any drawbacks.
