German Chancellor Olaf Scholz’s €100 billion budget will not be enough to enable Germany to achieve its ambition of becoming Europe’s leading army. In a report published by Handelsblatt, the Federal Court of Accounts warns that the projects will exceed the amount of this special fund. The federal government could be forced to make massive cuts in planned investments.
In question, inflation and the euro-dollar exchange rate that make the bill for contracts already signed more expensive. The bill for Lockheed Martin’s 35 F-35s and Boeing’s CH-47F Chinook heavy-lift helicopters will be higher than expected. Consequences: Several strategic projects could finally be revised or canceled for some.
lowering the ambitions
Berlin is already considering lowering its ambitions. According to Handelsblatt, the savings will affect the third tranche of the K130 corvette, new Eurofighters for electronic warfare, new frigates, the second batch of the Puma infantry fighting vehicle, and new self-propelled howitzers. This equipment is to replace systems delivered to Ukraine.
What will happen to the Arrow 3 anti-aircraft system under discussion with Israel and subject to US authorization? Apparently, this €2bn contract has yet to come up.
Representatives of the German arms industry believe that, although substantial, the €100 billion special fund has become grossly insufficient.
The Court of Auditors considers that there is still time to review the draft economic plan with the Federal Ministry of Finance with a view to the final budget deliberations.
Who will suffer the consequences? Nothing has been decided yet. As the specialized site reminds us OpexNewsThe €100 billion special fund is divided into €40 billion for air and space, €16.6 billion for ground forces, €20 billion for the navy, €20 billion for command and control and €2 billion for small equipment.
Source: BFM TV
