Bremen, a significant hub for the defense industry, is facing a debate over taxation as companies like Rheinmetall and the Lürssen shipyard continue to produce military equipment and experience substantial profits. The Left party in Bremen is proposing a windfall tax specifically targeting these defense firms, aiming to redirect a portion of their earnings to public resources.
According to a position paper reported by “Spiegel”, the Left party plans a 70% tax rate on “extra profits” dating back to 2021. Rheinmetall, for example, reported a near €1.5 billion operating profit in 2024, followed by a €808 million profit after tax. The Left’s proposal suggests retaining €321 million of this profit, leaving the company with a remaining €487 million.
“We must break the logic that arms companies reap private profits from our credits” stated Klaus-Rainer Rupp, the Left party’s spokesperson for economic policy. The party, currently governing in Bremen as a junior partner with the SPD and Greens, intends to introduce a motion for the “windfall tax” to the Bremen Parliament after the summer recess. Ideally, the proposal would also be discussed at the European Union level.
Rupp underscored the rapid increase in the stock prices of Rheinmetall and other defense companies, emphasizing the necessity of recapturing a portion of this generated capital. The proposal highlights growing tensions surrounding the economic benefits derived from the ongoing increase in military production.
