Based on the “strategic industry dialogue” and a new strategy paper from the Federal Ministry for Economic Affairs, Berlin aims to gain military power by directing Germany’s crisis-ridden industrial potential toward the arms industry.

At the beginning of December, the Ministry for Economic Affairs and the Ministry of Defence invited not only the arms industry but also the civilian economy to a “strategic industry dialogue” in Berlin for the first time.

According to an analysis in German Foreign Policy, the meeting concluded with a declaration that Germany’s entire industrial potential, including the civilian sector, must be mobilized to enhance the capacity of the defense industry.

A council of advisors assembled by the Federal Ministry for Economic Affairs had reached the same conclusion in November. According to their strategy paper, Europe’s defense industry should be strengthened under German leadership; technological superiority and the serial production of military equipment are seen as indispensable prerequisites for geopolitical power.

If the restructuring of the German economy toward the defense industry is successful, the country will face a new “era of security-oriented technological and economic leadership.”

State-capital cooperation for rearmament

The German Security and Defence Industry Federal Association (BDSV), the lobby organization for the German arms industry, has been conducting a “strategic industry dialogue” with the Ministry of Defence since 2014. This format corresponds to the period when the power struggle with Russia over Ukraine began to escalate.

However, the novelty of this year’s summit was the inclusion of the “civilian” economy alongside the arms industry. The Ministry of Defence claims it has “brought the entire spectrum of industry to the table.”

One of the main topics of discussion was how the civilian and military industries could better integrate their potentials. The federal government and industry associations are striving to create a close network that also extends to the field of R&D.

Defence Minister Boris Pistorius of the SPD argued that separating the arms industry from the civilian economy “does not make sense,” while Economy Minister Reiche added, “the transitions are now fluid.”

Industrialists want to turn crisis into opportunity

Peter Leibinger, President of the Federation of German Industries (BDI), also stated at the meeting that the integration of civilian and military industries holds the “true potential” for German rearmament.

According to the president, the civilian industry needs to develop “skills to serve the armed forces” for this purpose.

Defence Minister Pistorius declared that Germany, as the “world’s third-largest industrial nation,” possesses “a potential that many countries worldwide envy.”

Pistorius argued that German companies should maintain their global leadership role by joining forces and working together abroad to obtain desired raw materials, such as rare earth elements, which are also indispensable for the arms sector.

The significant demand for new employees in the arms industry could be met by personnel who have lost their jobs due to the widespread crisis in Germany’s civilian industry.

It was suggested that the shift to the arms sector would not only preserve employment but also ensure “economic growth.” According to Economy Minister Reiche, a strong defense industry can be established by targeting civilian production capacities for military applications.

As an example, the minister noted that the crisis-affected automotive industry possesses skills that are now urgently needed in the defense sector.

Shifting to the arms sector means “doing something for the country”

According to Reiche, the priority is to create the “capacity to act.” In addition to expanding capacity in arms production, this also requires resilience.

Pistorius also emphasized that the German Armed Forces (Bundeswehr) can only be effective if “society and the economy are functioning well.”

Pointing out the great importance of the serial production of UAVs and ammunition, the minister noted that it is not the “final product” in the Bundeswehr’s inventory that is decisive, but the production capacities of the entire value chain. Therefore, commitments are needed not only for reliable large-scale purchases by the Bundeswehr but also from other sales markets.

BDSV board member Hans Christoph Atzpodien demanded that the industry know the extent of its “capacities in such a scale-up process.” He hopes the German arms industry will succeed in selling its increased production on the European market “wherever possible.”

Atzpodien reported that hundreds of German companies have contacted the association, stating they “want to be involved in armament.” The reason is not only that money can be made in the arms sector but also because they “want to do something for the country.”

New strategy paper for the arms industry

To support the rapid growth of the German arms industry, Federal Economy Minister Reiche assembled a four-member advisory committee of leading figures to prepare a strategy paper outlining a framework for the expansion of arms manufacturers.

The document states that “defense capability” is the ability to assert oneself, endure for a long time, and also win in emergencies. Acknowledging that Germany is falling behind in the “global technology race,” the strategy therefore calls for the German state to use its defense investments as a “strategic lever.”

According to the paper, industrial mobilization is a “rare opportunity to achieve technological sovereignty, economic strength, and strategic capacity for action for Germany and Europe.”

The new strategy paper pointed out that technological superiority and the ability to produce numerous weapons systems are crucial for “geopolitical power” in the global balance of power, arguing that victory in modern warfare belongs to those “who can most quickly supply their forces on the front line with the relevant amount of technology.”

Germany’s path to European leadership will be through armament

Accordingly, the experts called on Germany’s political and industrial leaders to create and maintain new production capacities in the arms sector in case of tension or war.

They state that “active industrial capacity planning” and “precise annual targets” are needed in the defense sector.

To strengthen the industrial base in the long term, the advisors are focusing on exports and the “targeted” integration of the Ukrainian defense industry into European supply chains.

For defense spending to result in “strategic autonomy,” it is planned to always be “an investment in European sovereignty” to secure Europe’s autonomy from the US.

The German objective here is to strengthen the Bundeswehr under Germany’s leadership and lay the foundations for a common European defense economy.

The experts predict that “Europe, and Germany within Europe, will become even stronger.” Thus, the Federal Republic will enter a “new era of security-oriented technological and economic leadership.”

Discussions on “Germany’s return” are not new

Germany’s desire to convert its global economic leadership, though currently diminished, into corresponding military power is not new.

Based on an important document, New Power – New Responsibility, leading German politicians have been publicly demanding since 2013 that Germany’s economic strength in the world market must also be transformed into political and military power on a global level.

The demand for Germany to become independent from the US as Europe’s leading power in terms of power politics gained momentum under the slogans of “strategic autonomy” and “European sovereignty,” especially during the first term of US President Donald Trump.

Even then, the fundamental demand of proponents of strategic autonomy was that the financial resources allocated for armament should not be used to purchase market-ready weapon systems from the US, but rather invested in the targeted development of an independent German or European arms industry.