Germany to publish new defense industry strategy by year end, says minister

PHOTO CAPTION: German service members are seen during a joint exercise at San Gregorio training area, Spain on October 26, 2015. (NATO photo via Flickr)

BERLIN (Reuters) - The German government will publish its new defence industry strategy, which aims to cut red tape and accelerate arms production, by the end of the year despite the collapse of the coalition, Defence Minister Boris Pistorius said on Monday.

Germany, the largest backer of Ukraine in Europe, vowed to upgrade its eroded Bundeswehr army and boost defence as part of a "Zeitenwende" - or "turning point" - policy shift announced shortly after Russia invaded Ukraine in February 2022.

"For too long, ... the state has seen itself more as a regulator than as a partner to the defence industry," said Pistorius at the ground-breaking ceremony of a new missile production site for MBDA in Schrobenhausen.

"The task is to further strengthen our country's defence industrial base in these times. Not only to maintain it, but to strengthen it," Pistorius said.

"We therefore want to specifically improve the framework conditions for an efficient security and defence industry."

The strategy could allow the government to take a stake in arms-makers and defence projects in "strategic cases", and contains recommendations including promoting key technologies and improving the industry's financial framework, according to a draft seen by Reuters.

Pistorius said at a separate event on Monday at Airbus Helicopters' site in Donauwoerth, Germany, that the government was still capable of taking action, despite the coalition between the minister's Social Democrats (SPD), the Greens and pro-market Free Democrats falling apart.

"We as the federal government will of course continue to engage in intensive discussions with the security and defence industry," added Pistorius.



(Reporting by Rachel More and Miranda Murray. Editing by Friederike Heine and Mark Potter)