EconomyLens.com
No Result
View All Result
Saturday, March 14, 2026
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

German defence giants battle over military spending ramp-up

Andrew Murphy by Andrew Murphy
December 13, 2025
in Economy
Reading Time: 9 mins read
A A
1
47
SHARES
585
VIEWS
Share on FacebookShare on Twitter

Rheinmetall technicians work on a battle tank. The manufacturer argues traditional heavy weapons are still vital for conflicts. ©AFP

Frankfurt (Germany) (AFP) – Defence giants are drawing battle lines as Germany rearms, with the old guard arguing for traditional heavy weaponry while start-ups push for more modern kit such as AI-enabled drones. Chancellor Friedrich Merz has vowed to create Europe’s strongest conventional army with outlays of hundreds of billions of euros, accelerating a build-up that began after Russia’s 2022 full-scale invasion of Ukraine.

Related

US federal judge quashes subpoenas in Fed chair investigation

UK govt warns petrol retailers against ‘unfair practices’ during Iran war

How will US oil sanctions waiver help Russia?

Senegal to take back assets of phosphate giant ICS

US Fed’s preferred inflation gauge edges down

The rush to rearm, mirrored across Europe, has been fuelled by pressure from US President Donald Trump for NATO allies to spend more on defence as well as worries about American commitment to the continent’s security. But where these funds should flow is hotly debated. A crop of German tech defence start-ups argue the Ukraine war — much of it now contested in the skies with unmanned aerial vehicles — has shown that relatively inexpensive, mass-producible equipment like drones powered by artificial intelligence will be key for future conflicts.

So far, some argue, too much spending has focused on time-tested but expensive weaponry such as tanks and armoured vehicles, which are vulnerable to being targeted by the new, cheaper airborne armaments. “Clearly there’s been an overly strong focus on traditional platforms,” Gundbert Scherf, one of the heads and founders of German defence technology company Helsing, told AFP. “Spending patterns have to change as the world around us changes.” Scherf, whose Munich-headquartered start-up was founded in 2021 and supplies strike drones to the Ukraine military, sees signs that attitudes are shifting. “I am hoping we are going to see the spending pattern change from a 99 percent focus on traditional systems and one percent on autonomous systems, to a more even balance.”

Helsing, backed by Spotify founder Daniel Ek’s investment firm and reportedly worth 12 billion euros ($14 billion), recently carried out successful tests with the German military, striking targets multiple times.

– Pressure to ‘keep pace’ –

German tech defence start-up Stark — which was founded just 18 months ago and has also had its drones tested with the German military — echoed Helsing’s cautious optimism. “Procurement in Germany is changing, and that is really positive,” said Josef Kranawetvogl, a senior executive at the firm, which counts among its investors Silicon Valley tech billionaire Peter Thiel. But he worried that the shift was not moving fast enough. “We are really good in Europe at writing strategic papers — but we have to execute more. We have to keep pace, we have to be fast,” he said.

On the other side of the debate is Rheinmetall, Germany’s biggest weapons manufacturer and a key supplier of military vehicles and ammunition whose sales have been dramatically boosted by the Ukraine war. CEO Armin Papperger recognises drones are increasingly important — Rheinmetall also makes them and is investing more — but argues they are just one of many systems that will be vital in future. “Without armoured vehicles, it would not be possible to defend a country or repel an aggressor if they invade,” Papperger, whose company is valued at around 70 billion euros, recently told a media briefing. “If there were a war involving NATO, it would look very different from what we currently see in Ukraine,” he said. “Drones would play a less significant role than they do now.”

– ‘Lagging behind’ –

Drones also figure in the government’s planning, with Defence Minister Boris Pistorius saying in October that Berlin was planning to invest 10 billion euros in the technology in the coming years. But there are indications of a continued focus on time-honoured war gear. News outlet Politico recently reported the government had laid out 377 billion euros worth of desired arms purchases — much of it earmarked to go to establishment defence titans. A defence ministry spokesman declined to comment on the report while stressing that drones had been part of military operations for some time. But the spokesman, who declined to be named in line with standard German government practice, added that “battle tanks, armoured personnel carriers and combat aircraft will continue to be needed in the future”, working in combination with unmanned systems.

Germany’s rearmament marks a major transformation for a country with a long-standing pacifist tradition shaped by its painful World War II history. But like the start-ups, some observers worry the build-up is moving too slowly — and at serious risk of misfiring. The military’s “planning is lagging behind the inexorable rise of unmanned and autonomous systems,” prominent British historian Niall Ferguson and Moritz Schularick, President of the Kiel Institute for the World Economy, wrote in a blistering critique recently. They warned those in charge were too focused on “the weapons of the last war — not the next.”

© 2024 AFP

Tags: defensedronesGermany
Share19Tweet12Share3Pin4Send
Previous Post

China’s smaller manufacturers look to catch the automation wave

Next Post

German defence giants battle over military spending ramp-up

Andrew Murphy

Andrew Murphy

Related Posts

Economy

US economic growth sharply lower than estimated in fourth quarter

March 13, 2026
Economy

China says vice premier to leave Saturday for US economic talks in France

March 13, 2026
Economy

Takaichi to be ‘candid’ with Trump as war hurts Japan

March 13, 2026
Economy

EU vows to ‘respond firmly’ to any trade pact breach by US

March 12, 2026
Economy

WWII leader Churchill to be removed from UK banknotes

March 12, 2026
Economy

War creating ‘largest’ oil shock in history as Iran hits new Gulf targets

March 12, 2026
Next Post

German defence giants battle over military spending ramp-up

French PM urged to intervene over cow slaughter protests

Jimmy Lai, the Hong Kong media 'troublemaker' in Beijing's crosshairs

Louvre trade unions to launch rolling strike

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

New York ruling deals Trump business a major blow

96

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Trump says other countries ‘must take care’ of Hormuz

March 14, 2026

‘Normal, but not really’: Iraqis try to carry on as missiles fly

March 14, 2026

Trump urges world powers to secure Iran shipping lane

March 14, 2026

Israel says Iran war entering ‘decisive phase’

March 14, 2026
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.