Germany may redirect investments planned for the environment to weapons production
German government discusses this initiative with regional authorities
German authorities are considering redirecting subsidies allocated for the closure of coal-fired power plants to support the defense industry.
Source. Bloomberg writes about this with reference to informed sources.
Details. The German federal government is discussing this initiative with regional authorities. The building of new weapons factories will provide the armed forces with a large number of weapons and ammunition, as well as create new jobs, the agency's sources say.
German Defense Ministry contractor Rheinmetall AG announced in December that it would increase ammunition production. The company will invest more than €10 million in a new production line at its facility in Unterlüs near Hamburg. The facility is expected to produce ammunition for 30 Gepard anti-aircraft systems that Chancellor Olaf Scholz's coalition has agreed to provide to Ukraine.
In addition, Rheinmetall may build an additional plant to produce components for ammunition in the eastern state of Saxony, a Bloomberg source said.
Germany's armed forces have been suffering from outdated and partially faulty equipment for many years, Bloomberg writes. After Russia's invasion in Ukraine, the German government last year spent 100 billion euros on defense investments. At the time, Chancellor Olaf Scholz promised that Berlin would invest more than 2% of national GDP in strengthening the army.
Background. As reported, Germany plans to spend 17 billion euros on the construction of a missile defense shield. The enhanced missile defense system will protect not only Germany but also neighboring countries.
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