Rheinmetall’s CEO, Armin Papperger, has called for a reorientation of the country’s economic and defense policies in the next federal government.
“If I were a politician, I would launch an 800-billion-euro program today”Papperger told the Spiegel. “200 billion euros for security, 200 for education, 200 for infrastructure and 200 for digitalization.”He emphasized the need to redefine the debt brake, saying that “otherwise, we won’t get out of the mess.”
Papperger also advocated for a five-year freeze on social structure, stating that Germany has a high level of social security, which is a good thing. However, he believes that, after decades of growth, the country has reached its limit and cannot sustain further increases.
The CEO also called for a significant increase in defense spending to three percent to restore the country’s military capability. “Three percent would help to accelerate the buildup”he said, citing the need for “conventional deterrence”in the face of Russia, which he considers the greatest threat to Germany.
Furthermore, Papperger demanded a partial withdrawal of the state from the European defense industry, criticizing the often hasty and ill-conceived transfer of programs to companies by policymakers. He cited the example of the German-French tank project, Main Ground Combat System, in which Rheinmetall is partnering with KNDS, a joint venture of the German Krauss-Maffei-Wegmann and the French state-owned Nexter.
To create larger and more efficient defense companies in Europe, Papperger suggested the establishment of publicly traded companies, with the state holding only minority stakes, similar to in the United States. He also left open the possibility that states like France might sell some of their shares in defense companies.