Making the defense industry future-proof

Berlin, February 8, 2024 – Germany and Europe need an industrial policy concept to strengthen the security and defense industry. This is what IG Metall, the SPD Economic Forum and the Federal Association of the German Security and Defense Industry (BDSV) are calling for in a joint position paper. The paper published today postulates that our own defense capabilities in the dimensions of land, air and sea must be further developed and, if necessary, new ones built up in order to secure the performance of the industry and increase its development and production capabilities.

With the “turning point”, another aspect is now coming to the fore in addition to the financing of the Bundeswehr through the special fund: an industrial policy is required that takes into account and promotes the production capacities and technological capabilities of Germany as a location and the defense companies operating here. This requires a clear definition and political objective of key technologies in the security and defense industry as well as an industrial policy agenda in order to strengthen Germany, its industry and the jobs there as well as the capabilities and sovereignty of the Bundeswehr. This is also of great importance for the companies operating here and their employees. IG Metall and the Economic Forum of the SPD e.V. have contacted companies from the sub-sectors of the security and defense industry and developed proposals. The companies’ contributions were coordinated by the Federal Association of the German Security and Defense Industries (BDSV).

To date, the paper warns, there is no such comprehensive industrial policy concept for the defense industry. What is required is a structural and process reform so that every euro invested provides a corresponding service.

With regard to the timing of publication, Matthias Machnig, Vice President of the SPD Economic Forum, said: “Germany and Europe must now take the next step in defense policy coordination and better joint integration. This is all the more urgent given the fragile international order and Russia’s ongoing war of aggression against Ukraine. But this is especially true in view of the political uncertainties regarding the next US administration with all the possible consequences for the NATO alliance, Germany and the European Union. As the central industrial country in Europe, Germany has a special role and responsibility when it comes to strengthening and further expanding technological and industrial capabilities. To achieve this, Germany must launch a strategic industrial policy – ​​in harmony with its European partners.”

Jürgen Kerner, Second Chairman of IG Metall, emphasized: “2024 is the year of decision for the defense technology industry in Germany. Politicians do emphasize their importance for the security of our country and Europe. But contrary to what you might think, the Bundeswehr’s special assets do not automatically lead to a strengthening of the domestic industry. Rather, it threatens to fall under the wheels if more and more purchases are made overseas and the government does not ensure that companies in Germany take over maintenance and upgrades. We finally need a defense industrial policy. Highly motivated, excellently qualified employees work here in technically demanding jobs that are usually covered by collective agreements. They rightly demand predictability and planning security in research and development, in procurement and production, in maintenance and modernization of systems.”

For Dr. Hans Christoph Atzpodien, General Manager of the BDVSV, is clear: “Germany immediately 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 increased European arms cooperation. Furthermore, the innovative and investment power of security and defense policy must be strengthened and the opportunities for research and development strategically expanded. This requires a procurement policy that creates predictability and planning security so that the necessary investments and the necessary build-up of know-how are ensured.”

The paper has been sent to the Federal Chancellery, the Federal Ministry of Defense and the Federal Ministry for Economic Affairs and Climate Protection as well as the responsible Bundestag committees. It is here available.

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