Berlin, February 8, 2024 – Germany and Europe need an industrial policy framework to strengthen the security and defense industry. This is the call made by IG Metall, the SPD Economic Forum, and the Federal Association of the German Security and Defense Industry (BDSV) in a joint position paper. The paper, published today, argues that Germany’s own defense capabilities on land, in the air, and at sea must be further developed—and, where necessary, new capabilities established—to ensure the industry’s performance and increase its capacity for development and production.
With the “turning point,” another aspect is now coming to the fore alongside the financing of the Bundeswehr through the special fund: There is a call for an industrial policy that focuses on and promotes the production capacities and technological capabilities of Germany as a business location and of the defense companies operating here. This requires a clear definition and political objectives for key technologies in the security and defense industry, as well as an industrial policy agenda to strengthen Germany, its industry, and the jobs within it, along with the capabilities and sovereignty of the Bundeswehr. This is also of great importance for the companies operating here and their employees. To this end, IG Metall and the SPD Economic Forum (Wirtschaftsforum der SPD e.V.) have consulted with companies from various sectors of the security and defense industry and developed proposals. The contributions from the companies were coordinated by the Federal Association of the German Security and Defense Industry (BDSV).
The paper points out that, to date, no such comprehensive industrial policy concept for the defense industry exists. It calls for structural and process reforms to ensure that every euro invested yields a corresponding return.
Commenting on the timing of the publication, Matthias Machnig, Vice President of the SPD Economic Forum, said: “Germany and Europe must now take the next step toward greater coordination in defense policy and better joint integration. This is all the more urgent in light of a fragile international order and Russia’s ongoing war of aggression against Ukraine. But this is especially true in view of the political uncertainties surrounding the next U.S. administration, with all the potential consequences for the NATO alliance, Germany, and the European Union. As Europe’s leading industrial nation, Germany has a special role and responsibility when it comes to strengthening and further expanding its technological and industrial capabilities. To this end, Germany must—in coordination with its European partners—launch a strategic industrial policy.”
Jürgen Kerner, Second Chairman of IG Metall, emphasized: “2024 is the decisive year for the defense industry in Germany. Politicians do emphasize its importance for the security of our country and Europe. But contrary to what one might think, the Bundeswehr Special Fund does not automatically lead to the strengthening of domestic industry. Rather, it risks falling by the wayside if more and more is purchased overseas and the government fails to ensure that companies in Germany handle maintenance and upgrades. We finally need a defense industry policy. This sector employs highly motivated, exceptionally qualified workers in technically demanding jobs that are mostly covered by collective bargaining agreements. They rightly demand predictability and planning certainty in research and development, in procurement and production, and in the maintenance and modernization of systems.”
For Dr. Hans Christoph Atzpodien, CEO of the BDVSV, one thing is certain: “Germany urgently needs an updated strategy paper to strengthen the German security and defense industry in order to have a clear compass for its own positioning within the framework of enhanced European defense cooperation. Furthermore, the innovation and investment capacity of security and defense policy must be strengthened, and opportunities for research and development must be strategically expanded. This requires a procurement policy that creates predictability and planning certainty so that the necessary investments and the necessary development of expertise are ensured.”
The paper has been submitted to the Federal Chancellery, the Federal Ministry of Defense, and the Federal Ministry for Economic Affairs and Climate Action, as well as to the relevant committees of the Bundestag. It is available here.
