Rearmament

Germany warns the EU that a single defense procurement model risks stifling innovation, advocating instead for financing competing technologies. Berlin cites Ukraine’s wartime approach as evidence that innovation thrives through competition, emphasizing the need for faster, less bureaucratic defense rearmament.

Germany plans to borrow €800 billion for rearmament, marking a historic shift under Chancellor Friedrich Merz. The debt-fueled spending is the largest since German reunification.

Defence firms near Russia are outpacing Western peers in rearmament efforts, according to ING. A top executive noted that Eastern Europe has transitioned from verbal commitments to concrete actions more quickly.

Germany is accelerating its rearmament efforts despite facing new challenges domestically and internationally. Berlin has made significant military commitments but is encountering obstacles at home and abroad.