The dispute concerning the German-French tank manufacturer KNDS is escalating just before its planned initial public offering. The German government insists on strict clauses designed to prevent critical knowledge from flowing out of Germany. Although Berlin and Paris managed to communicate on Monday, according to the “Handelsblatt”, the company had already voiced sharp criticism regarding the possibility of restrictive veto rights. Tom Enders, head of the KNDS supervisory board, told the “Handelsblatt” that the “growing national focus on defense and arms cooperation” was “worrying.” He questioned whether they wanted to treat France like China, given their decades of successful joint work on numerous defense projects.
Enders was responding to a paper released on Friday by several SPD parliamentary members calling for extensive veto powers within the tank manufacturer. The manager warned that Germany was straying toward “national special paths.” He argued that any clear thinker must understand that European defense can only be strengthened through increased cooperation, not through national isolation and unilateral actions.
The German government maintains that discussions with France proceeded in a “trusting and confidential” manner. It justifies its stance by stating that it is necessary to protect intellectual property. Sources within the government explained that it must be prevented that German key know-how, intellectual property, or production-related technology is used or passed around within the corporation in a way that gradually shifts development, production, or export competencies out of Germany.
