The German armed forces are expected to remain heavily reliant on imported weaponry for a considerable time. According to a model calculation reported by “Der Spiegel” a gap of up to 117 billion euros could emerge between the required procurement demand and the value of weaponry produced by German companies by 2035.
The management consulting firm anticipates that Germany will increase its defense spending, as planned, to between 3.5 and 5 percent of the gross domestic product by 2035. This calculation accounts for funds allocated to personnel and maintenance. Concurrently, the consultants estimate that domestic defense companies will grow by as much as 17 percent annually while continuing to export a portion of their production.
In the most favorable scenario for the industry, and with the lowest demand, the gap would be 22 billion euros. Under the worst-case scenario, however, this deficit could be more than five times larger. Closing this gap would require the industry to achieve annual growth rates of up to 28 percent.
