Up to 40 billion euros
Rheinmetall expects mega orders from special funds
May 11, 2024, 8:54 a.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The Bundeswehr is to be bolstered with a special fund worth billions for the “turning point” – and the armaments manufacturer Rheinmetall is happy about it. Ultimately, the majority will probably end up in his coffers. The company makes it clear: the troops need more money.
The head of the arms company Rheinmetall, Armin Papperger, expects large orders from the federal government’s 100 billion special fund. “You can assume that in the end between 30 and 40 billion euros will come to us from the special fund,” said the manager in an interview with the “Süddeutsche Zeitung”. “For anti-aircraft defense, trucks, ammunition, our share of the F35 program, and much more.”
The fact that the tank builder and ammunition manufacturer is likely to receive the largest share of Berlin’s 100 billion euro program is due to the size of the company. “If we had gotten the smallest share, then we would have done something wrong,” said Papperger. The special fund for the Bundeswehr was made available by the federal government shortly after Russia’s attack on Ukraine in February 2022. However, the budget is expected to be used up by 2026.
Pappberger only sees two options
Papperger therefore called on the federal government to provide secure financing for the Bundeswehr for the period afterwards. If the Bundeswehr special fund promised by Chancellor Olaf Scholz is used up, there are “only two options,” said Papperger. “You can take on new debt or reallocate money from the budget.” There was “no alternative,” said the manager, “either one or the other.” Because “otherwise the turning point would be over in 2026” and we would be “worse off than before”.
Germany would then have “more military equipment”, but would no longer be able to pay for its use. You also need staff. However, it is not the responsibility of the economy to decide on easing the debt brake or reallocating the budget. “Politicians have to solve the problem,” said Papperger.
In order to play in “the same league as the Americans,” according to the Rheinmetall boss, large European defense companies would have to join forces. “We need a European arms champion.” Six years ago, Papperger himself tried to take over the Munich tank manufacturer Krauss-Maffei Wegmann (KMW) with Rheinmetall. However, today KMW is partnering with the French defense company Nexter. He doesn’t believe “that France would support a takeover by Rheinmetall today,” said Papperger. There are currently “no discussions whatsoever”. But you are “open to everything”.