As NATO races to supply Ukraine before Trump takes office, Europe is struggling to touch two percent of its GDP on defence expenditure while Russia plans to spend more than 32 percent of its national budget on its military.
Russian President Vladimir Putin “has long since switched completely to a war economy,” and the country is currently producing as many weapons and ammunition in three months as the entire European Union does in a year, Pistorius said.
Ukraine struck Russia’s Bryansk region with U.S.-supplied ATACMS systems while President Vladimir Putin has signed into decree, his country’s revised nuclear doctrine, which has enlarged the conditions under which adversaries would be subject to nuclear deterrence.
Shortly before the conversation with Putin, however, Scholz also reiterated in remarks to parliament that Germany would not supply Ukraine with the long-range Taurus cruise missiles, which Ukraine has repeatedly requested.
In the September survey, Defence Minister Boris Pistorius’ (SPD) proposal to increase defence spending to 3% to 3.5% of the gross domestic product received 50% approval, while 15% said that was too low.
No signals have as yet been received from German Chancellor Olaf Scholz on resuming dialogue with Russian President Vladimir Putin, despite statements to the effect by Scholz, according to the Kremlin.
Russia’s war on Ukraine has prompted Germany to revisit its defence posture, which increasingly suffered from a lack of investment since the end of the Cold War as imminent threats appeared to diminish. The legislation must now pass through Germany’s two houses of parliament. It could come into force in May of next year.
German Defence Minister Boris Pistorius said that the Bundeswehr needs around €58 billion ($63 billion) in 2025 to quickly close capability gaps. “As things stand, we will be allocated around €52 billion”, he said, adding, “That means we will be short of almost €6 billion next year.”
Chinese drone manufacturer DJI is facing trouble doing business in the U.S with all kinds of legal hurdles and has filed a lawsuit against the U.S. Pentagon, while Raytheon has been fined almost $1 billion and Sweden’s Saab has been subpoenaed for its sale of Gripen fighters to Brazil.
German arms company Rheinmetall and Italy’s Leonardo will build the Panther KF51 Main Battle Tank for the Italian Army via a new company in addition to building a thousand variants of the Lynx Infantry Fighting Vehicle.
Australia announced a $4.7 billion purchase of Raytheon SM-2 and SM-6 missiles and Taiwan is likely to buy three Raytheon NASAMS medium-range air defence systems in a $2 billion sale.
The order is for a turnkey factory that will become a ‘Ukrainian Centre of Excellence for Ammunition’ to be operated by a Rheinmetall joint venture with a Ukrainian state-owned company, that will begin production within 24 months to manufacture hundreds of thousands of rounds of artillery ammunition per year.
“The Russian army increases its number of tanks by 1,000 to 1,500 additional units every year. The five largest European NATO member states together have just half of that in their inventory,” said Germany’s chief of defence Carsten Breuer.
Scholz’s coalition has faced criticism over the small increase in the 2025 budget for defence. “In 2017, we still spent €37 billion ($42 billion) on defence. Now, with the use of the special fund, the Bundeswehr‘s budget is €75 billion. That’s more or less a doubling,” Scholz said.
The U.S. and German governments announced plans for the deployment of U.S. missile systems that could reach Russia. These include nuclear-capable Tomahawk cruise missiles with a range of 2,500 kilometres, SM-6 anti-aircraft missiles and newly-developed hypersonic missiles.
