The government should be able to decide more freely which armaments it orders, advisers to the Economics Minister are proposing.
(Photo: Reuters)
Berlin Scientific advisors to Economics Minister Robert Habeck (Greens) consider the procurement of armaments in Germany to be too lengthy and cumbersome. Among other things, they propose that large orders no longer be submitted to the budget holders of the Bundestag for approval.
“This so-called parliamentary loop leads to a mixing of the legislative and the executive,” writes the Scientific Advisory Board at the Ministry of Economic Affairs in a new report that was presented on Tuesday.
In order to increase the defense capability of the Bundeswehr after the Russian attack on Ukraine, the traffic light coalition passed a procurement acceleration law and set up the 100 billion euro special fund. However, the consultants see further room for improvement – and are also starting with Parliament.
It is customary to submit armaments orders worth more than 25 million euros to the Bundestag budget committee in advance. This established practice was also laid down in law in the implementation law for the special fund.
Especially in a tense security situation, the government must be able to decide quickly on the purchase of armaments. The members of parliament often do not have the competence to assess individual procurement processes in detail. They could also make their approval dependent on conditions that are in the interest of their constituency, the report says.
The way through parliament makes procurement less efficient
“The parliamentary scrutiny is intended as an additional control, but leads to the award procedure becoming more expensive, less transparent and more susceptible to lobbying, and taking longer,” write the scientists.
>> Read here: Defense Minister Pistorius: “The time factor will have priority in all procurements in the future”
Instead of submitting individual orders to the budget holders for approval, the draft budget for the equipment of the Bundeswehr should also be drawn up so precisely that the Bundestag can finally approve it from the outset, they propose.
The defense policy spokesman for the FDP parliamentary group, Alexander Müller, does not want to go that far. But he also sees a need for reform. The 25 million euro limit has not been adjusted for decades, Müller told the Handelsblatt. “I therefore propose raising it to 100 million euros. But we as parliamentarians want to continue to have control over large arms orders.”
Orders with a volume of more than 25 million euros must be approved by the budget committee of the Bundestag.
(Photo: IMAGO/Metodi Popov)
The consultants also see a need for correction in the Procurement Acceleration Act, which is initially limited to the end of 2026. For example, it provides that tenders for European armament cooperation projects can be limited to bidders from EU countries.
>> Read here: Defense Commissioner Högl calls for more speed and transparency in programs worth billions
This regulation has a “protectionist effect” because in certain cases suppliers from non-European NATO partners such as the USA could be excluded from the outset. If the government wants to promote the domestic armaments industry or capacity building, then it should rather create transparent rules for this.
In addition, the consultants propose restricting the legal protection for providers who are not awarded contracts. The practice of dividing large orders into smaller lots, intended to protect medium-sized industry, should also be reconsidered.
No more splitting large orders
Because if an order is divided into components, there is a risk that these are not really coordinated. As an example, Habeck’s advisors cite the problems with the interaction of the new assault rifle and the telescopic sight intended for it.
FDP defense politician Müller considers the proposals “predominantly good”, and in some cases what his party has been demanding for a long time will be taken up.
However, he also misses something: “We have to come to more pay-by-performance orders,” says the liberal. This means that the industry receives the order to service a delivered system for ten years and to supply it with spare parts. “But the money only flows if the tank drives or the helicopter flies.”
>> Read here: Defense Minister Pistorius plans more than 20 billion euros for ammunition
The report contains a slimmed-down version of the proposal. The consultants propose facilitating the conclusion of contracts in which the contractor receives a bonus if he delivers particularly quickly or with particularly good quality.
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