German lawmakers block over €1 billion in defense contracts in procurement crackdown

Two German lawmakers have blocked or forced the renegotiation of defense procurement contracts valued at more than €1 billion, exerting strict parliamentary oversight over the military’s budget spending.

According to a report by the Financial Times, Andreas Mattfeldt of the Christian Democratic Union (CDU) and Andreas Schwarz of the Social Democratic Party (SPD) serve on the Budget Committee of the Bundestag, Germany’s federal parliament.

The committee holds the authority to approve all military procurement projects valued at over €25 million.

In January, the two lawmakers vetoed a €600 million contract intended for Munich-based electronics group Rohde & Schwarz to supply a mobile intelligence system. The parliamentarians objected to the contract being awarded directly without a competitive bidding process.

One month later, they blocked a €462 million direct agreement with defense contractors Rheinmetall and MBDA. The contract was aimed at developing a laser system designed to protect naval vessels from drone attacks.

In February, the lawmakers also successfully lowered the maximum cost of three contracts intended for the procurement of kamikaze drones. Later in April, they halted the planned purchase of 900 diesel fuel tanker containers for the German armed forces, the Bundeswehr. The representatives intervened after discovering that the price of the tankers had doubled compared to a similar purchase made five years prior.

“We have brought about a paradigm shift because we are responsible for the immense amount of money entrusted to us by taxpayers,” Mattfeldt said in an interview with the Financial Times. “I want to be able to say that we have contributed to the Bundeswehr getting the best equipment at the best price.”

Schwarz, who, like his colleague, previously served as a municipal mayor, added: “We do not get involved in ideologies; we use our common sense.” While colleagues and aides jokingly refer to the pair as “the two Andys,” the two lawmakers have nicknamed themselves “the A-Team.”

Budget committee powers stem from past cost overruns

The extraordinary powers of the budget committee over defense procurement date back to 1981. At the time, parliament reacted to severe cost overruns in the Tornado fighter jet program by decreeing that all military projects exceeding 50 million deutsche marks must receive legislative approval.

Today, that threshold stands at €25 million, a limit that one official described as “completely outdated.”

A spokesperson for the German Ministry of Defense said: “Parliamentary control over major acquisitions is an important oversight tool in our democracy.”