Europe is being excluded from talks on the future of Ukraine because it has invested too little in defense for decades, according to Armin Papperger, the CEO of Rheinmetall, in an interview with the Financial Times. In his opinion, Europe itself is to blame for not playing a role in potential peace negotiations. Over the past 30 years, Europeans have been content with devoting a mere 1% of their GDP to defense.
“If you don’t invest, if you’re not strong, you’ll be treated like a child and won’t be allowed to sit at the table with the grown-ups” Papperger argued. “When parents have dinner, the children have to sit at a separate table. The US is negotiating with Russia and no European is sitting at the table – it’s very clear that the Europeans are the children.”
Papperger also believes that the significance of the defense industry and the demand for weapons in Europe will remain high even in the event of a ceasefire between Ukraine and Russia. In this context, the Rheinmetall CEO highlights the low weapon stockpiles on the continent: “The Europeans and the Ukrainians have nothing in their depots.”
Even in the event of a ceasefire, the perceived threat of Russian aggression is currently relevant, which could prompt Europe to invest more in the defense industry, Papperger said. “Even if the war ends – if we think we have a very peaceful future, I think that’s wrong.”
Rheinmetall, one of the largest beneficiaries of growing global uncertainty, expects a turnover of 30 to 40 billion euros in the next five years, according to the FT. In 2021, before the outbreak of the Ukraine conflict, the company made a profit of 5.7 billion euros.