Germany: In the ‘nationalization’ of defense industry against inflation and job loss

Federal Minister of Defense supports the greater state participation in the arms industry Germany Boris Pistorius And this in order to hire prices and loss of jobs in Germany.

“I am strongly convinced that we need state participation – and to ensure that know -how and jobs will be maintained in Germany.”Pistorius said in an interview with Handelsblatt. It is recalled that Germany has voted for the struggle of the debt brake to increase defense spending, but most of the defensive systems are turning to the US for the time being, on the one hand, due to the deterioration of the situation on the Ukrainian Front (at the expense of the “collective west”). NATO members by 2035, with Berlin being committed to 3.5% by 2029!

The Federal Government is currently examining the KNDS battle tanks and the Thyssen-Krupp Marine Systems (TKMS) shipbuilding company.

“The questions here are how big a state share could be and how quickly a share could be acquired”explained Pistorius. The defense minister stressed that, given the billions of dollars spent on defense, there is currently a “goldsmith” mentality in the defense industry. Therefore, politicians need to help ensure that we do not now face inflation in defense. “This would not serve anyone, including industry,” Pistorius said.

The minister strongly criticized the fact that the coalition partner, the CDU – CSU, did not intend to discuss the law on the new military service in the federal parliament for the first time on Thursday, October 9, 2025, as planned. “The behavior of the CDU – CSU is negligent because it can delay the introduction of the new military service and, therefore, the restoration of military registration,” Pistorius said.

Concerning recent incidents with unmanned aircraft in Germany and in several other European countries, the Minister of Defense said that Bundeswehr cannot be everywhere in Germany where unmanned aircraft appear and crack them. “It is much more important for state and federal police forces to develop the potential they need to operate at a particular altitude,” Pistorius stressed.

More specifically, the German Defense Ministry was asked whether the German state should be more involved in this area, as is the case in France, Pistorius responded positively. “These are the maintenance of companies with basic technologies. I think, for example, our submarine contract, which secures the site of the Wismar yard for years. And the acquisition of Lürssen by Rheinmetall will enhance Wolgast site. We need state participation, I am fully convinced of it – also to ensure that know -how and jobs will be maintained in Germany, “he said.

Pistorius assured that “all colleagues in the Council of Ministers (Germany) know how important our basic technologies for the security of our country are. That is why we are currently examining the KNDS battle tanks and shipbuilder TKMS. The questions here are how big a state share should be and how quickly a share could be acquired. “

Concerning the reaction of the German Defense Industry, according to the Ministry of Defense. Defense is “overwhelmingly positive. The industry knows that location issues are also at stake, “although it admitted that” there is almost a “goldsmith” mentality. The arms industry is currently making significant profits. However, as politicians, we need to help ensure that we do not deal with weapons price inflation. This would not help anyone, including industry. “

Pistorius stressed that it is “the industry to increase its capacity very quickly now. This ensures long -term returns and prevents inflation of price. “

He noted that he is planning “large orders of thousands for significant equipment, with three -digit orders for many individual systems. These are contracts with annual purchase guarantees that are valid by 2034 or 2035. This gives the industry planning security. In return for guaranteed quantities for a long time, we expect timely delivery and reasonable prices. “

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