A prominent trade union leader is advocating for a special tax levied on the exceptional profits of arms manufacturers, citing record earnings driven by geopolitical conflict and government contracts. Daniel Friedrich, district head of the IG Metall union, voiced his concerns in an interview with the Süddeutsche Zeitung, arguing that these profits shouldn’t be considered a “license to print money.
Friedrich highlighted the substantial profit increases reported by major defense companies like Rheinmetall, Hensoldt, Leonardo and Renk since the onset of the conflict in Ukraine. He specifically proposed a tax of 50 percent on profits exceeding an average of 20 percent growth over the previous five years.
The call for a “windfall profit tax” on defense firms is gaining traction beyond IG Metall, with support also emerging from politicians within the Social Democratic Party (SPD), the Green Party and the Left Party.
Friedrich emphasized that companies benefiting from increased military spending have a responsibility to contribute fairly to the public good. He pointed to the dissonance between ongoing debates regarding social welfare cuts and the celebratory performance of arms manufacturers on the stock market, questioning the fairness of allowing a few corporations to accumulate significant wealth while the state invests billions in defense.