Germany wants to invest 100 billion euros in its Bundeswehr. Rheinmetall could benefit from this.
(Photo: Stocktrek Images/Getty Images)
Brussels, Frankfurt Up until a few weeks ago, investments in armaments companies were considered by many investors to be breaking a taboo. But in the course of the Ukraine war, political priorities changed: Chancellor Olaf Scholz announced that Germany would increase its defense spending and invest 100 billion euros in the Bundeswehr. As a result, the prices of armaments stocks such as Rheinmetall and Hensoldt soared.
Disarmament and non-armament have dominated the discussion in Europe over the last few years and decades. The Ukraine war has given the debate a new direction: In addition to Germany, other countries in Europe are also massively arming themselves in response to Russian President Vladimir Putin’s war of invasion. The major Swedish bank SEB has already announced that it will lift its ban on investments in weapons from April.
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