The German government continues to emphasize its involvement with the tank manufacturer KNDS, while simultaneously facing pressure from both governing parties to increase its activities within the defense sector. Andreas Schwarz, the SPD politician in charge of budget affairs, stated to “Der Tagesspiegel” and “Handelsblatt” that state participation should be utilized more frequently and with greater strategic focus. He suggested that this approach could help ensure that significant public investments in defense also contribute to the creation and preservation of jobs.
Roderich Kiesewetter, a security policy specialist in the CDU, called it “essential” to identify key industries and develop and sustainably secure them through strategic state participation. According to the Bundestag member, these critical sectors must be protected particularly from espionage and foreign investors, especially those from non-European nations.
Schwarz believes it would be advantageous for the government to enter into the development of the future fighter jet or the space industry. To guarantee Germany an independent access to space, he argued that the government should secure launch capabilities by investing in young German companies, labeling this as essential German technology. Kiesewetter, referencing the case of the robotics company Kuka, which became entirely controlled by Chinese interests since 2022, urged the examination of state participation in the insolvent company Varta. He described Varta, the “last purely European battery and storage manufacturer,” as having “tremendous dual relevance,” noting that modern security systems, communication technology, autonomous systems, and drones all rely on high-performance and secure energy storage.
In their coalition agreement, the CDU and SPD had committed to strategically evolving the federal government’s portfolio of shared interests. However, when questioned about potential acquisitions, including startups, a spokesperson for the Ministry of Defense merely stated that the government would continue to conduct timely assessments of state participation, regardless of a company’s age, should national security interests be involved.
The business community views this trajectory critically. Matthias Wachter of the Federation of German Industries (BDI) stated to “Background” that state ownership should remain the exception. He emphasized that the privately organized defense and security industry is a major strength, arguing that competition between companies drives innovation, efficiency, and technological excellence. Wachter added that Germany already possesses effective instruments to protect against undesirable or security-sensitive takeovers. For young technology companies, he stressed that the state’s role should primarily be that of a reliable customer, not an owner, advising that the government should prioritize procuring rocket launches and space services rather than taking equity stakes.
