Europe
Germany mobilizes its entire economy to become a military powerhouse
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.
Europe
German officials urge fighter jet alliance with Sweden and Spain
German Defence Ministry officials have advised Berlin to form a new fighter jet partnership with Sweden and Spain rather than join an existing UK-led consortium.
Internal ministry assessment notes obtained by Politico state that a trilateral arrangement among Germany, Sweden, and Spain represents a “more advantageous and promising” approach than joining the Global Combat Air Programme (GCAP) run by the UK, Italy, and Japan.
The proposal outlined in the document does not yet represent a final government decision, nor does it contain any indication that German Defence Minister Boris Pistorius has approved the recommendation.
The advice was drafted after Germany’s flagship project with France to build a next-generation fighter jet collapsed in June following years of industrial infighting.
Initiated in 2017 and later joined by Spain, the Future Combat Air System (FCAS) was conceived as a showcase initiative for European defence cooperation. The partnership aimed to develop an aircraft to replace Germany’s Eurofighter fleet starting in 2040.
However, the initiative foundered on disputes over operational control and workshare between France-based Dassault and Germany-based Airbus Defence and Space. Following unsuccessful rescue attempts at the political level, Berlin withdrew from the joint fighter project this year.
UK Prime Minister Andy Burnham raised the prospect of Germany joining GCAP during an 8 October meeting in Berlin with Friedrich Merz. The two leaders agreed that officials should continue discussions.
For Berlin, the choice carries implications that reach far beyond which model its air force will fly. The decision will determine who controls future military technology, which countries secure production contracts, and whether a new European partnership can avoid the frictions that dismantled FCAS.
Ministry assessment keeps distance from UK-partnered GCAP project
The ministry assessment listed several reservations regarding the GCAP project. The report argued that the existing programme focuses on operations beyond Germany’s capability requirements, whereas Berlin needs an aircraft better suited for missions over continental Europe.
The document also noted that German manufacturers would struggle to secure a significant share of development and production work within an already established partnership.
Invoking past experiences with the Eurofighter programme, which was developed in the 1990s and entered service in the early 2000s, the document took direct aim at British defence contractor BAE Systems.
The German Defence Ministry assessment accused BAE Systems of prioritizing exports over the development interests of Germany and Italy, warning that British dominance would prove incompatible with an equal partnership.
By contrast, the document stated that the military requirements of Germany, Sweden, and Spain align closely and that their starting positions are well balanced.
The assessment proposed an industrial partnership between aerospace giant Airbus and Sweden’s Saab, while recommending that the Saab-manufactured Gripen E fighter jet serve as a technological stepping stone until the new aircraft is developed.
The German Defence Ministry declined to comment on the matter. A separate ministry note, however, recorded British efforts to integrate Germany into GCAP as an observer or participant, asking German officials to examine potential industrial roles and military requirements.
An Airbus spokesperson said the company was “generally open to cooperation”, provided that German and Spanish industry secured a “substantial and equal role” across development, production, and operational phases.
“Purely political decisions without an industrial foundation remain insufficient,” the spokesperson said, urging authorities in Berlin and Madrid to clarify the path forward swiftly.
In an interview published in Handelsblatt on Monday, Airbus defence chief Michael Schollhorn pointed to ties with Saab, noting that the two companies have always worked well together.
A Saab spokesperson also indicated that the company is receptive to broad defence cooperation, including in fighter aircraft.
Emphasizing that large-scale collaborative projects are handled at the political level and that participation decisions rest with the respective governments, the spokesperson said: “All questions regarding potential Swedish participation should be directed to the Swedish government. Saab stands ready, as always, to support Sweden’s future fighter aircraft requirements.”
Europe
EU reopens debate on naming envoy for Ukraine talks with Putin
The European Union has returned to the idea of appointing an envoy to hold talks on Ukraine with Russian President Vladimir Putin.
According to sources familiar with the matter who spoke to Politico, this search gained fresh momentum following a visit to Russia by Steve Witkoff, the US special envoy.
During his trip, Witkoff proposed to Putin that Russia, the US, and Ukraine hold trilateral talks.
European countries, meanwhile, fear that Washington could accept terms unfavourable to Kyiv in negotiations that exclude them.
Sources speaking to Politico said the names being discussed for the envoy role include European Commission President Ursula von der Leyen, European Council President António Costa, and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.
Some European diplomats believe Finnish President Alexander Stubb may be the most suitable candidate for the post.
Stubb’s good relations with Trump and Finland’s experience in dealing with Russia are cited among the factors setting him apart.
An unnamed EU diplomat described Stubb as the only European politician so far to have demonstrated senior-level leadership.
Another group of diplomats argues that Costa should lead the talks. European leaders asked Costa during last week’s EU summit in Brussels whether the time had come to speak with Putin.
Politico’s source recounted that exchange: “Costa said no, saying he would not speak to Putin right now. But if we want to play a role in the negotiations, Costa still needs to initiate dialogue with Putin.”
According to an assessment by another source, the European Council president could serve as a more neutral mediator than von der Leyen or Kallas, who are seen as overly focused on supporting Ukraine.
“Three or four people cannot go there with each of us speaking on behalf of the European Union,” one of the sources told the publication. “Ultimately, the choice of who represents the EU must be based on maximum efficiency, not on a personal power struggle or someone’s narcissistic ambitions.”
Politico previously reported in January that the EU was considering appointing a special representative for Ukraine negotiations. At the time, the initiative drew support from several European leaders, including French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.
Putin said he was ready to negotiate with European countries, but asserted that Europe had “no peace agenda” and stood “on the side of war”.
The Russian leader also named former German chancellor Gerhard Schröder as Moscow’s preferred negotiator from Europe.
Kallas ruled out such an appointment, noting that Schröder was “a lobbyist for Russian state companies” and would sit “on both sides of the negotiating table”.
Stubb details obstacles to talks and Oslo diplomatic drive
Finnish President Alexander Stubb said the principal obstacle to ending the war between Russia and Ukraine was the territorial issue.
Stubb took part in talks in Oslo with US envoy Steve Witkoff, who subsequently travelled to Saint Petersburg to meet Vladimir Putin.
As reported by the newspaper Helsingin Sanomat, Stubb stated that advancing the peace process required either bilateral talks between Russia and Ukraine or trilateral negotiations involving the US.
The Finnish president listed the other major items to be addressed within a settlement as US security guarantees for Ukraine and the construction of a new European security architecture after the war ends.
Without stating it outright, Stubb implied that the core issue within this framework was Ukraine’s NATO membership. The Finnish leader pointed to monitoring the ceasefire, establishing the line of contact, ensuring energy and food security, and exchanging prisoners as practical tasks.
Stubb also detailed the talks held in Oslo on 20 October, which included Witkoff, Ukrainian President Volodymyr Zelenskyy, and Norwegian Prime Minister Jonas Gahr Støre.
The discussions, which spanned approximately eight hours across various formats, had three objectives: to lower tensions in public discourse, to convey European and Ukrainian proposals to the US envoy before his visit to Russia, and to determine the next steps toward a peaceful settlement. Stubb announced that these goals had been achieved.
Moscow ready to resume trilateral talks in November
Witkoff met Putin in Saint Petersburg on Wednesday.
Following the meeting, Russian presidential aide Yuriy Ushakov announced that Moscow was prepared to resume trilateral negotiations with the US and Ukraine during the first half of November.
Ushakov also said that the EU and NATO had begun to “take a more serious approach” to Kremlin proposals on Ukraine, adding that “matters” were moving toward an end to the conflict.
Witkoff described the meeting as “constructive”.
Sources told Bloomberg in September that Putin continued to insist the Donetsk region must come fully under Russian control, expressing confidence that the territory would be captured within the next six months.
Putin previously set conditions for ending the war, demanding that Ukraine abandon plans to join NATO, maintain a neutral and non-nuclear status, and that anti-Russian sanctions be lifted.
Europe
Trump midterms calculus halts Israeli strike plan against Iran
A comprehensive military operation planned by the Israeli military for 10 October did not take place because US President Donald Trump chose to avoid a broad conflict before the 3 November congressional midterm elections.
Preparations had been made on the orders of Prime Minister Benjamin Netanyahu for an aerial bombardment meant to last several days, according to a report by the Financial Times citing sources familiar with the matter.
The list of targets included nuclear facilities and locations associated with the Iranian leadership, along with power stations and other civilian infrastructure sites.
The planned strikes were projected to exceed the joint operation launched by the US and Israel in February in terms of intensity.
White House Deputy Press Secretary Anna Kelly told the newspaper: “The United States is not going to strike Iran at any point before the midterms.”
Kelly argued that the administration in Tehran was in distress both economically and militarily, adding that the blockade imposed on Iranian ports and US efforts to secure oil shipments through the Strait of Hormuz were producing results.
Speaking to the newspaper, one source addressed the possibility of strikes resuming in the coming weeks, saying: “There’s either going to be a deal or a strike.”
The same source reported that Washington aims for a comprehensive settlement that resolves the conflict over both the Strait of Hormuz and the nuclear programme, although it remained unclear whether the US would have participated directly in the cancelled operation.
Another source said the preparations for the operation might have served as leverage to pressure Tehran in negotiations, adding that the final decision on any new military step rests with the US president.
Hegseth reviews updated target list in Israel
An Israeli official said US Secretary of War Pete Hegseth visited Israel on 19 October to meet with Netanyahu and senior representatives.
Another source stated that the Israeli side presented an updated target list to its American counterparts, compiled with fresh intelligence and incorporating civilian infrastructure sites that had not been struck earlier this year.
The Pentagon did not respond to questions regarding the meetings, while Netanyahu’s office and the Israeli military declined to comment.
Despite the postponement of the operation, Trump and Netanyahu continued to issue military warnings to Iran in public.
In a video released on 19 October, Netanyahu addressed Trump, saying: “Donald, you said we need to finish this, and we will finish it together.” Speaking on speakerphone, Trump responded: “You’re a great warrior, and we’re going to prove it very soon.”
These engagements between the leaders coincide with critical election cycles in both countries.
Parliamentary elections in Israel are scheduled for 27 October, one week before the vote in the US.
Most public opinion polls in the country show the opposition bloc holding a narrow lead over Netanyahu’s coalition, though neither side commands a clear majority.
Axios, a US-based news outlet, previously reported that the Pentagon instructed military planners to finalize strike plans against Iran, though the directive specified no date and Trump had not reached a final decision.
On 15 October, CNN reported on plans to use the GBU-43/B munition, known as the “mother of all bombs”, against Iranian nuclear facilities, with US officials who spoke to the broadcaster expressing scepticism about the weapon’s ability to destroy deep bunkers.
While Tehran announced that it remains open to a diplomatic solution, it declared that any potential operation would draw a fierce response.
Iranian Foreign Minister Abbas Araghchi stressed that if its adversaries chose military conflict, the response would be “much harsher than before”.
Following the joint operation launched by the US and Israel on 28 February, Iran retaliated by striking targets across the region and restricting maritime passage through the Strait of Hormuz.
Although the parties reached an agreement in June covering a ceasefire and negotiations to lift the blockade in the strait, reciprocal strikes between the US and Iran have not ceased.
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