Bremen, a significant hub for the arms industry, is facing renewed debate over the profits generated by major defense manufacturers like Rheinmetall and the Lürssen shipyard. The Left party in Bremen is proposing a windfall profit tax targeting these companies, aiming to redirect funds towards public services, as detailed in a recently released policy paper reported by “Der Spiegel”.
The faction’s plan envisions a 70% tax rate on “excess profits” dating back to 2021. Rheinmetall, for example, reported nearly €1.5 billion in operating profit in 2024, translating to €808 million after taxes. The Left’s proposal would see €321 million of this sum redirected, leaving the company with a remaining profit of €487 million.
“We need to break the logic that arms companies are profiting from private gains through public funds” stated Klaus-Rainer Rupp, the Left party’s spokesperson for economic policy. Currently governing in Bremen as a junior partner within a coalition with the SPD and the Green Party, Rupp intends to submit a formal proposal for the “windfall profit tax” to the Bremen Parliament after the summer recess. He expressed a desire to see the proposal considered at the European Union level.
Citing the surging stock prices of Rheinmetall and other defense firms, Rupp argued for a measure to reclaim a portion of the accruing capital. The proposal has ignited discussion regarding the balance between government revenue and the economic impact on key industries within the city and potentially beyond.