German Defense Companies Demand Long-Term Orders From NATO Countries

Leaders of the German defense industry have called on NATO countries to confirm their promises to increase military spending with specific and long-term orders.

European Pravda reported on this with reference to the DPA news agency.

At the summit in the Netherlands, which begins today, NATO leaders are expected to commit to spending 5% of GDP on defense.

“We expect a clear statement from NATO member states at the summit that the words will be followed by actions,” Michael Schellhorn, Head of Airbus’ defense division, told the Augsburger Allgemeine newspaper on Tuesday.

He emphasized that this increase in defense spending should be translated into real action. “For the industry, this means planning guarantees and long-term commitments in the form of orders,” Schellhorn added.

According to him, the company could quickly ramp up production if there are clear orders, defined deadlines, and sufficient volumes.

Alexander Zagel, head of Renk, an Augsburg-based company that produces tank transmissions, noted that the defense industry needs more confidence for strategic planning. “A few years ago, we were producing 150-200 new transmissions yearly. In the future, our production will reach four figures,” he said.

Oliver Dierre, CEO of Hensoldt, a defense electronics company, called the expected NATO decisions historic. According to him, this will allow the company to quickly expand production capacity and stimulate innovation.

Rene Obermann, Chairman of the Supervisory Board of Airbus, criticized the current EU procurement rules as too bureaucratic and slow. “They are not sufficiently focused on European suppliers, take too long, and often lead to overly complex requirements,” he shared with the RND media group.

He also called for reform of EU procurement legislation and greater standardization of weapons systems.

NATO has recently tested a new surface drone equipped with flying drones that are mounted on special external platforms.

In addition, last month, it was reported that the German defense giant Rheinmetall and the American Lockheed Martin plan to establish large-scale production of ATACMS and Patriot PAC-3 missiles in Europe.