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German defence firms demand long-term commitments from NATO

Ahead of the NATO summit in The Hague, German defence industry leaders urged member states to match spending pledges with firm, long-term procurement orders to ensure planning security and production growth.

DPA WORLD
Published June 24,2025
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Ahead of a NATO summit in The Hague, German defence industry leaders are calling on alliance members to follow through on promises of increased military spending with concrete, long-term procurement commitments.

"We expect a clear commitment from NATO member states at the summit that words will be followed by action," Michael Schöllhorn, head of Airbus's defence division, told the Augsburger Allgemeine newspaper in comments published on Tuesday.

The leaders of NATO countries are expected to commit to spending 5% of gross domestic product (GDP) on defence at the alliance's summit in the Netherlands.

The expected rise in defence spending must be translated into real action, he said. "For the industry, that means planning security and long-term commitments in the form of orders," Schöllhorn added.

Schöllhorn said the company could expand production quickly if there were firm orders, clear timelines and large enough quantities. With the United States gradually reducing parts of its military presence, he stressed that Europe must act promptly.

Alexander Sagel, head of the Augsburg-based tank transmission manufacturer Renk, said the defence industry needs greater certainty for future planning.

"A few years ago, we still produced 150 to 200 new gearboxes per year. In the future, we will see gearbox outputs in the four-digit range," Sagel said.

Oliver Dörre, chief executive of defence electronics firm Hensoldt, called the expected NATO decisions historic. "The new NATO capability targets and the increase in defence spending to up to 5% of GDP represent a historic turning point for European security." This, he said, would allow the company to rapidly expand its capacities and drive innovation.

René Obermann, chairman of the Airbus supervisory board, criticized current EU procurement rules for being overly bureaucratic and slow. "They are not sufficiently focused on European suppliers, take too long and often result in overly complex requirements," he told the RND media group.

Obermann called for a reform of EU procurement law and greater standardization of European weapons systems.

NATO allies are set to gather in The Hague on Tuesday for a two-day summit focused primarily on increasing defence spending, although leaders are also expected to discuss the ongoing war in Ukraine.