Country drastically reduces arms purchases due to high inflation, according to Handelsblatt newspaper
Germany is “massively” scale back its rearmament plans because high inflation and a strong dollar have made equipment too expensive for the country, unnamed representatives from politics and the defense industry told the Handelsblatt newspaper.
Many projects, especially those in the Navy and Air Force, are likely to be canceled, the outlet reported Friday.
The fate of a third batch of K130 corvettes now hangs in the balance, along with new Eurofighter electronic warfare planes, frigates and self-propelled howitzers, which were to be ordered to replace equipment sent from Berlin to Ukraine, officials said. sources. .
The number of units of a second batch of Puma infantry fighting vehicles, which was estimated to cost 304 million euros ($299.8 million) earlier this year, is also being reduced on a weekly basis. , said an anonymous politician from the ruling “traffic light” party. the coalition told the newspaper.
“Since many projects last five to seven years, inflation in this dimension creates a serious financial problem,” one of the sources explained. The economic situation has been strained in Europe as the burden of the Covid-19 pandemic has been further aggravated by the fallout from EU sanctions imposed on Moscow for its military operation in Ukraine, and the subsequent reduction in the supply of block Russian energy.
Arms makers were reportedly unhappy with the size of a 100 billion euro ($98.6 billion) special fund allocated by the German government for rearmament purposes. “To meet the wishes of the Bundeswehr, 200 billion euros are needed”, a defense company official told Handelsblatt.
When announcing the investment in June, Chancellor Olaf Scholz promised it would help make the German military the “the largest conventional army” among the European member states of NATO. The Bundeswehr could “defend every square meter” territory of the US-led military bloc, he insisted.
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