FDP blocks state participation in arms companies
Many defense companies are struggling to ramp up production. The federal government is considering intervening in strategically important cases. The FDP is thumbs down. Instead of parochialism in defense, it advocates for more European cooperation.
The FDP has rejected considerations by the federal government to have the state invest in German defense companies. "The FDP is against state participation in companies, even in the defense industry," said Alexander Müller, the FDP's defense policy spokesman, to the German Press Agency. This would only delay insolvencies and endanger competition.
"And it would sabotage the creation of European defense champions if each state only takes care of its own national interests. The fragmentation of the European defense landscape would remain an expensive nuisance," said Müller. Instead, he advocates for reducing bureaucracy, longer procurement contracts, and European cooperation.
The federal government wants to support the ramp-up of the defense industry in several steps. The "Handelsblatt" recently reported that the Ministry of Economics and the Ministry of Defense are working on a corresponding strategy paper. This includes a direct state investment in further strategically important companies or projects. The goal is to promote key technologies and improve the financial framework conditions of the industry. This would classify the expansion of the industry as being of "overriding public interest," which could speed up approval procedures and give it priority in legal balancing acts.
The German Press Agency was informed about corresponding plans from government circles. The paper is being developed jointly by the Ministry of Economics and the Ministry of Defense. It is about concrete considerations that still have to be coordinated among all participating departments and provided with review procedures, it was said.
The FDP, through their defense policy spokesman, Alexander Müller, has expressed concerns about the federal government's plans to invest directly in strategic defense companies, stating it would potentially sabotage the creation of European defense champions. Instead, Müller advocates for reducing bureaucracy, longer procurement contracts, and fostering more European cooperation within the defense industry.
Given the FDP's stance against state participation in companies, even in the defense sector, it is unlikely that they would support the formation of a 'traffic lights coalition' in regards to this matter, as such a coalition might include parties favoring government intervention in the defense industry.
