Berlin, Munich More ammunition, new tanks, aircraft and warships – and now also a missile shield worth billions: After Chancellor Olaf Scholz (SPD), CDU leader Friedrich Merz also signaled approval on Monday for a possible procurement of the Israeli “Arrow 3” system, also known as “Iron Dome”.
As late as 2020, the grand coalition had stopped the development of a German-American missile defense system. But the Russian attack on Ukraine and the Bundeswehr’s lack of operational readiness are now changing priorities. Purchases should be made worldwide where fully developed systems can be delivered quickly.
That will also be necessary because the capacities of many armaments companies are fully utilised. US President Joe Biden also wants to further increase US defense spending in the coming year, as he announced on Monday. In addition, according to the will of the federal government, Ukraine should be supplied with additional weapons as quickly as possible by redirecting German arms exports for third countries to Ukraine.
An additional 100 billion euros are earmarked for the Bundeswehr. “Germany can use the money to fill gaps in the Bundeswehr’s equipment,” says Michael Schoellhorn, head of the Airbus armaments division, to the Handelsblatt. For the manufacturer of the Eurofighter fighter jet, however, it is also clear: “According to a pure needs analysis, the 100 billion euros will not be enough.
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>> Read the full interview: Airbus armaments chief promotes European air defense system
In view of the unexpected windfall in money for the armed forces, industry is ready to re-equip the Bundeswehr – and the need is huge. At the beginning of the Ukraine war, Army Inspector Alfons Mais had certified that the Bundeswehr was “more or less blank”, and indeed: there was a lack of operational combat aircraft, helicopters, tanks and protective equipment. The arsenals of the army are empty. “The ammunition is not enough for even a day,” says a person familiar with the situation. In the Navy it looks even bleaker: “It’s enough for 44 seconds – so one shot.”
The years of scarcity cannot be remedied overnight. “Strengthening the Bundeswehr will be a marathon,” says one participant who wishes to remain anonymous. And the size of the 100 billion euro special fund is quickly put into perspective when you look at the need for ammunition alone: In order to meet the NATO target of 30 days of combat capability, experts believe that the federal government would have to spend at least 20 billion euros on cartridges, Spend grenades and rockets.
Defense Minister Christine Lambrecht (SPD) is responsible for the rearmament, but the Federal Chancellery is pulling the strings in the background. “Scholz has declared the issue a top priority,” says a person involved in the planning. Even before the chancellor’s “Zeitenwende” speech in the Bundestag at the end of February, when Scholz announced the special fund, the federal government asked the armaments companies what they could deliver.
What is immediately available goes to the Ukrainian army
The ministers have defined three criteria according to which purchasing should take place. Item one contains material that can be delivered directly to Ukraine. Protective equipment, ammunition and anti-tank and anti-aircraft systems are paramount. “A lot has already been delivered, more than is publicly known,” says a person familiar with the processes. In addition, armored vehicles could be delivered in the direction of Kyiv. “Later maybe also corvettes,” says a representative of the industry who wishes to remain anonymous. There is also field catering for the Ukrainian army.
But the depots of the Bundeswehr are largely empty. That’s why companies should deliver what’s in stock. “We even check the old stock of armored vehicles for their usability,” says an armaments manager. But there are also efforts to redirect certain armaments to Ukraine for export. “The federal government is talking to the recipient countries about whether they agree to a later delivery.”
The line of defense is largely very successful in Israel and is being tested as a model for Germany.
(Photo: imago images/ZUMA Wire)
According to industry and parliamentary circles, this could also affect air defense systems from the German manufacturer Diehl. Shortly before the end of their term in office, the grand coalition had approved the controversial export of 16 systems to Egypt. Well, according to parliamentary circles, the delivery could be diverted to Ukraine.
Under point two, the armaments companies should report what they can deliver at short notice to upgrade the armed forces. In addition to ammunition, this also includes equipment for the army and spare parts for tanks, helicopters and airplanes.
According to defense circles, just one in ten of the approximately 300 units of the Leopard 2 main battle tank is operational, and the rest are not up to date anyway. The order should go to the manufacturer Krauss-Maffei Wegmann (KMW) and to a lesser extent to Rheinmetall and Renk (engines). walk. The equipment with modern radio equipment, which has been delayed up to now, is also urgent.
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Item three includes the mostly expensive large-scale projects that often run for many years. The purchase of 35 F-35 fighter jets from the US manufacturer Lockheed Martin has already been decided. In an emergency, the machines, which are among the most modern in the world, should be able to carry American nuclear weapons to the target area. The federal government wants to order 15 Eurofighters for electronic warfare and equip them accordingly. Airbus Defense boss Schoellhorn hopes to order another 40 Eurofighters to replace the outdated Tornado fighter-bombers.
In order to speed up procurement, the federal government wants to rely less on European in-house developments than in the past, but rather buy what is available on the market “off the peg”. This applies, for example, to the urgently needed heavy transport helicopter to replace the outdated Sikorsky CH-53G. With the more expensive Sikorsky CH-53 K and the cheaper Boeing CH-47 Chinook, two US manufacturers are still in the running.
But lucrative orders are also likely to fall for national producers such as radar and sensor manufacturers Hensoldt, Airbus or Rheinmetall. According to informed circles, the Bundeswehr could receive a further 350 Pumas, doubling the number of their armored personnel carriers. In addition, wheeled tanks of the Boxer type and logistics vehicles are likely to be purchased. The Rheinmetall Group, whose CEO Armin Papperger has put together a package worth 42 billion euros, is promising the biggest deal, as he recently told the Handelsblatt.
In addition, it is considered certain that the German Navy will receive five more K130 corvettes and one or two additional submarines, says an industry representative. “The purchases are necessary for Germany to fulfill its NATO mandate.” This includes securing the North and Baltic Seas. In view of the expected orders from the federal government, Thyssen-Krupp has called off the sale of its TKMS shipyard group. The Kiel company is one of the leading manufacturers of conventional submarines. “At the moment, a sale is out of the question,” said a manager from the ranks of the parent company in Essen.
Experts call for an end to the gold rim solutions for the Bundeswehr
The list of purchases is long – but up until now it has often taken years for the material to actually reach the troops. Defense Minister Lambrecht therefore discussed on Monday with defense and budget politicians from the traffic light factions how procurement can be made less bureaucratic and faster.
The processes in the competent Federal Office for Equipment, Information Technology and Use of the Bundeswehr (BaainBw) are as tough as the name is long. Countermeasures could be taken here, for example by raising the threshold values up to which orders are possible without having to involve the Federal Office or the Defense Committee beforehand.
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Experts call for further reforms. “As a rule, the Bundeswehr gets the super solution with a red ribbon; high-tech, but also highly complex and expensive,” says Michael Santo from the Munich management consultancy h&z. This applies, for example, to the overdeveloped military transporter Airbus A400M or the belated introduction of armored vehicles. “Does a new infantry fighting vehicle have to comply with civilian guidelines for occupational safety and machine protection?” asks Santo. “The industry’s export experience can help the Bundeswehr to find simpler solutions,” says the former Air Force officer.
The Bundeswehr is working on its defense readiness in direct response to the Russian attack on Ukraine.
(Photo: dpa)
The FDP also wants to make the industry more responsible and insist that the material delivered actually keeps what was promised. For this, the possible contractual penalties would have to be increased. In procurement procedures in which defeated competitors sue, it should not be necessary to wait for the court decision, because this would greatly delay procurement, demands Alexander Müller, spokesman for defense technology and procurement for the FDP parliamentary group.
Hurry is necessary because the delivery times are long. Ammunition could only be delivered in larger quantities in six months, says an industry representative. For new tanks, you have to reckon with at least a year and a half, maybe longer. Not only Germany reported an increased need after the Russian invasion of Ukraine. Rheinmetall received an order from Hungary for ammunition worth over 850 million euros over the weekend.
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