Bundeswehr | Government facilitates arms deals

Things have to move faster: 500 billion euros for "defense" in general, and the Bundeswehr in particular, need to be spent before prices have multiplied . Because defense companies are continually increasing the prices of their products and are experiencing the biggest boom since the end of World War II.

On Wednesday, the German government therefore launched the draft of the so-called Bundeswehr Procurement Acceleration Act, already planned in the coalition agreement between the CDU/CSU and the SPD. It is intended to simplify and "de-bureaucratize" procurement, enabling shortened procedures. In particular, according to the draft, it is also intended to eliminate the need for tenders in the future when awarding contracts. While Federal Defense Minister Boris Pistorius (SPD) spoke of a "quantum leap," alarm bells are apparently ringing at companies below the top tier, such as Rheinmetall, KNDS, and others.

For example, Felix Pakleppa, Managing Director of the Central Association of the German Construction Industry (ZDB), fears that small and medium-sized businesses will be "left behind." While the planned suspension of the so-called lot principle for the procurement of equipment, technology, or "systems to strengthen defense capabilities" is understandable, he warned in a press release that "construction projects, real estate, and other non-military projects must not be subject to blanket exceptions." Yet that is precisely the intention.

The draft law emphatically refers to the perceived threat from Russia and a possible attack on NATO countries. Complex procurement and approval procedures should therefore not slow down the Bundeswehr's rearmament, Pistorius explained. The special regulations for accelerating procurement are initially intended to apply until the end of 2035. They will make "direct awarding of contracts" to individual companies without a tender "faster and more frequent in the future," the minister explained.

The law will raise the value thresholds up to which contracts can be awarded directly to companies without a formal tender. This currently only applies to deals up to 15,000 euros. According to Pistorius, the threshold will now be drastically raised to 443,000 euros for all contracts "that strengthen our defense capabilities." This would allow almost 8,000 contracts to be processed more quickly, the minister said. For construction contracts, the threshold will even be raised to one million euros. This will affect 4,000 contracts.

"War preparation takes priority with this law because it overrides contract award standards."

Ulrich Thoden Left Party in the Bundestag

Pistorius admitted that this would entail "some impositions" for companies when it comes to the possibility of lawsuits against procurement procedures. "Some companies might then have to step back in the interest of the greater good."

Federal Minister for Economic Affairs Katherina Reiche (CDU) said: "We must become technologically and industrially stronger than potential attackers." She also clarified that the new rules apply not only to weapons systems, but also to civilian goods and services such as medical equipment and the construction of barracks.

The cabinet also wants to facilitate cooperation with start-ups. Pistorius said that in the future, they could be paid advance payments for orders "on a much larger scale." This is because they often lack the financial means "to quickly ramp up production." Ralf Wintergerst, president of the digital association Bitkom, praised the law, saying it heralds "an urgently needed change of direction in procurement policy." Defense capability is "defined today at least as much by digital technologies and software as by frigates and heavy equipment."

According to government plans, military airfields will be easier to build or expand. An amendment to the Air Traffic Act will eliminate lengthy planning approval procedures. Furthermore, the construction of industrial facilities and other buildings that could disrupt the operation of air defense systems will be prohibited.

While the Greens believe the plans are not far-reaching enough, the Left Party accuses the government of prioritizing "war preparations." The law "overrides contract award standards," and armaments projects "basically have priority," explained Ulrich Thoden, defense policy spokesperson for the Left Party in the Bundestag. On one point, the politician agrees with Green Party military expert Agnieszka Brugger—he also criticizes a restriction of parliamentary rights: "How parliamentary oversight is supposed to be possible under the conditions of this law, which grants maximum leeway to the military in an already opaque procurement system, is anyone's guess."