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.
Deputy government spokesman Wolfgang Büchner said that Orbán could travel wherever he wanted, adding, “What is not acceptable is that he travels through the world with the impression that he is doing so on behalf of others. And there will certainly be further discussion about how to deal with this.”
Economic researchers and partners in the ruling coalition led by Chancellor Olaf Scholz have warned of immense economic costs and legal difficulties that could result from plans for military conscription proposed by Defence Minister Boris Pistorius in June in an attempt to boost the numbers of the German armed forces.
Russia has criticized the planned stationing of long-range US weapons in Germany as a return to the Cold War, after German leaders said the step was necessary due to the increased threat posed by Russia to European security. “We are well on the way to a Cold War. This has all happened before,” Kremlin spokesman Dmitry Peskov said on Thursday.
The latest round of military aid worth USD 150 million is the Biden administration’s 60th tranche of aid since August 2021, including artillery and ammunition from its own inventories, in addition to purchases of air defence systems worth USD 2.2 billion for Ukraine.
The Pentagon said last week the U.S. will indefinitely postpone a military exercise in Georgia ‘due to the Georgian government’s false accusations against the United States and other western entities, to pressure Georgia to open a second front against Russia to alleviate pressure on Ukraine, and of participating in two coup attempts against the ruling party.’
German military spending is set to increase by only EUR 1.2 billion (USD 1.3 billion) under the terms of the preliminary 2025 national budget agreed on Friday, far below the demands of Defence Minister Boris Pistorius.
