Latest news with #BorisPistorius
The Hindu
3 hours ago
- Politics
- The Hindu
Germany seeks U.S. guarantee before sending Patriots to Ukraine
Germany needs firm U.S. assurances that it will quickly receive replacement Patriot anti-missile systems if it sends two of its own units to Ukraine, Defence Minister Boris Pistorius said on Wednesday (July 23, 2025). In comments to Der Spiegel news magazine, Mr. Pistorius said European NATO members needed 'watertight' guarantees that any American-made Patriot air-defence systems sent to Ukraine would be replaced within about six to eight months. U.S. President Donald Trump last week announced a deal with NATO chief Mark Rutte for European alliance members to buy U.S. weaponry – particularly Patriot systems – for Kyiv to help it in its war against Russia. The move marked a pivot for Mr. Trump as his patience has worn thin with Russia's President Vladimir Putin for frustrating efforts to halt the war in Ukraine. Germany has offered to finance two of the Patriot systems, while several other NATO allies have expressed willingness to pay for three more. But concern has grown as Washington wants European allies to first send Patriot systems from their own stocks to Ukraine and then wait for replacements from the United States. Mr. Pistorius told Der Spiegel it was important that 'the countries transferring systems can continue to meet their NATO requirements and that no security gaps arise for NATO'. Countries including Norway, Sweden and the Netherlands had declared their willingness to finance Patriot systems, but Mr. Pistorius said that 'no decision has been made as to which country could supply Patriot systems to Ukraine'. Speaking later at a Berlin news conference, he said talks were ongoing on the question of 'which countries in Europe and beyond currently have Patriots, and in what quantities are they willing to hand them over?' 'There is money for these Patriots. Now we just need the Patriots,' he added. Germany formerly had 12 Patriot systems, but has sent three to Ukraine and two to Poland. Another Patriot battery is dedicated to training, leaving Germany with six active units.
Local Germany
6 hours ago
- Business
- Local Germany
German government moves to speed up military procurement
The plans would make it easier for defence firms to receive advance payments from the state to start production sooner, Defence Minister Boris Pistorius told journalists. Contracts worth less than 443,000 euros will also be exempt from the full procurement process, up from a current limit of 15,000 euros, Pistorius said. The threshold will rise to one million euros for construction projects, he added. He said the proposed bill represented a "quantum leap" for Germany's armed forces, unblocking progress on about 12,000 procurement processes. The changes will address the "jumble of regulations" that hindered "quickly building up Germany's defence readiness", he added. Presenting the bill alongside Pistorius, Economy Minister Katherina Reiche said Germany needed to become "technologically and industrially stronger than potential aggressors". "That is how we preserve peace," Reiche added. Berlin has rushed to rearm itself following Russia's full-scale invasion of Ukraine, accelerating that process after US President Donald Trump urged Europe to take more responsibility for its own defence. Chancellor Friedrich Merz has vowed to build Europe's "strongest conventional army" to counter a perceived threat from Moscow. Advertisement That represents a radical shift in a country with strong pacifist traditions due to its Nazi past. READ ALSO: Military service 'could be made mandatory' says German Defence Minister Spending on Germany's armed forces is expected to reach 162 billion euros in 2029, more than triple Germany's defence budget before the war in become law, the cabinet's draft bill still needs to be passed by Germany's parliament.
Ya Libnan
9 hours ago
- Business
- Ya Libnan
Germany is reinventing the nature of warfare
A soldier holds a drone, on the day German Defence Minister Boris Pistorius visits the Innovation Lab of Germany's Army Bundeswehr in Erding, Germany, July 22, 2025. REUTERS MUNICH/BERLIN/FRANKFURT) – For Gundbert Scherf – the co-founder of Germany's Helsing, Europe's most valuable defenSe start-up – Russia's invasion of Ukraine changed everything. Scherf had to fight hard to attract investment after starting his company – which produces military strike drones and battlefield AI – four years ago. Now, that's the least of his problems. The Munich-based company more than doubled its valuation to $12 billion at a fundraising last month. 'Europe this year, for the first time in decades, is spending more than the U.S.,' said Scherf. The former partner at McKinsey & Company says Europe may be on the cusp of a transformation in defense innovation akin to the Manhattan Project – the scientific push that saw the U.S. rapidly develop nuclear weapons during World War Two. 'Europe is now coming to terms with defense.' Reuters spoke to two dozens executives, investors and policymakers to examine how Germany – Europe's largest economy – aims to play a central role in the rearming the continent. Chancellor Friedrich Merz's government views AI and start-up technology as key to its defense plans and is slashing bureaucracy to connect startups directly to the upper echelons of its military, the sources told Reuters. Shaped by the trauma of Nazi militarism and a strong postwar pacifist ethos, Germany long maintained a relatively small and cautious defense sector, sheltered by U.S. security guarantees. Germany's business model, shaped by a deep aversion to risk, has also favored incremental improvements over disruptive innovation. No more. With U.S. military support now more uncertain, Germany – one of the biggest backers of Ukraine – plans to nearly triple its regular defense budget to around 162 billion euros ($175 billion) per year by 2029. Much of that money will go into reinventing the nature of warfare, the sources said. Helsing is part of a wave of German defense start-ups developing cutting-edge technology, from tank-like AI robots and unmanned mini-submarines to battle-ready spy cockroaches. 'We want to help give Europe its spine back,' said Scherf. Some of these smaller firms are now advising the government alongside established firms – so-called primes such as Rheinmetall and Hensoldt ( , opens new tab – that have less incentive to focus primarily on innovation, given their long backlogs for conventional systems, one of the sources said. A new draft procurement law, expected to be approved by Merz's cabinet on Wednesday, aims to reduce hurdles for cash-strapped start-ups to join tenders by enabling advance payment to these firms, according to a version dated June 25, reviewed by Reuters. The law would also entitle authorities to limit tenders to bidders inside the European Union. Marc Wietfeld, CEO and founder of autonomous robots maker ARX Robotics, said a recent meeting with German defense minister Boris Pistorius hammered home how deep the rethink in Berlin goes. 'He told me: 'Money is no longer an excuse – it's there now'. That was a turning point,' he said. GERMANY IN THE LEAD Since Donald Trump's return to the political stage and his renewed questioning of America's commitment to NATO, Germany has committed to meet the alliance's new target of 3.5% of GDP on defense spending by 2029 – faster than most European allies. Officials in Berlin have emphasized the need to foster a European defence industry rather than rely on U.S. companies. But the hurdles towards scaling up industry champions in Germany – and Europe more broadly – are considerable. Unlike in the United States, the market is fragmented in Europe. Each country has its own set of procurement standards to fulfill contracts. The United States, the world's top military spender, already has an established stable of defence giants, like Lockheed Martin and RTX, and an advantage in key areas, including satellite technology, fighter jets and precise-guided munitions. Washington also began boosting defence tech startups in 2015 – including Shield AI, drone maker Anduril and software company Palantir – by awarding them parts of military contracts. European startups until recently languished with little government support. But an analysis by Aviation Week in May showed Europe's 19 top defence spenders – including Turkey and Ukraine – were projected to spend 180.1 billion this year on military procurement compared, to 175.6 billion for the United States. Washington's overall military spending will remain higher. Hans Christoph Atzpodien, head of Germany's security and defence sector association BDSV, said one challenge was that the military's procurement system was geared toward established suppliers and not well suited to the fast pace that new technologies require. Germany's defence ministry said in a statement it was taking steps to accelerate procurement and to better integrate startups in order to make new technologies quickly available to the Bundeswehr. Annette Lehnigk-Emden, head of the armed forces' powerful procurement agency, highlighted drones and AI as emerging fields that Germany needs to develop. 'The changes they're bringing to the battlefield are as revolutionary as the introduction of the machine gun, tank, or airplane,' she told Reuters. SPY COCKROACHES Sven Weizenegger, who heads up the Cyber Innovation hub, the Bundeswehr's innovation accelerator, said the war in Ukraine was also changing social attitudes, removing a stigma towards working in the defence sector. 'Germany has developed a whole new openness towards the issue of security since the invasion,' he said. Weizenegger said he was receiving 20-30 Linkedin requests a day, compared to maybe 2-3 weekly back in 2020, with ideas for defence technology to develop. Some of the ideas under development feel akin to science fiction – like Swarm Biotactics' cyborg cockroaches that are equipped with specialised miniature backpacks that enable real-time data collection via cameras for example. Electrical stimuli should allow humans to control the insects' movements remotely. The aim is for them to provide surveillance information in hostile environments – for example information about enemy positions. 'Our bio-robots – based on living insects – are equipped with neural stimulation, sensors, and secure communication modules,' said CEO Stefan Wilhelm. 'They can be steered individually or operate autonomously in swarms. In the first half of the 20th century, German scientists pioneered many military technologies that became global standards, from ballistic missiles to jet aircraft and guided weapons. But following its defeat in World War II, Germany was demilitarized and its scientific talent was dispersed. Wernher von Braun, who invented the first ballistic missile for the Nazis, was one of hundreds of German scientists and engineers transported to the United States in the wake of World War II, where he later worked at NASA and developed the rocket that took Apollo spacecraft to the Moon. In recent decades, defence innovation has been a powerful driver of economic progress. Tech like the internet, GPS, semiconductors and jet engines originated in military research programs before transforming civilian life. Hit by high energy prices, a slowdown in demand for its exports and competition from China, Germany's $4.75 trillion economy contracted over the last two years. Expanding military research could provide an economic fillip. 'We just need to get to this mindset: a strong defense industrial base means a strong economy and innovation on steroids,' said Markus Federle, managing partner at defence-focused investment firm Tholus Capital. ESCAPING 'THE VALLEY OF DEATH' Risk aversion among European investors had in the past disadvantaged startups, which struggled to get the capital they need to survive the 'valley of death' – the critical early stage when costs are high and sales low. But a boost in defence spending by European governments following Russia's invasion of Ukraine has investors looking for opportunities. Europe now boasts three start-ups with a unicorn valuation of more than $1 billion: Helsing, German drone maker Quantum Systems, and Portugal's Tekever, which also manufactures drones. 'There's a lot of pressure now on Germany being the lead nation of the European defense,' said Sven Kruck, Quantum's chief strategy officer. Germany has become Ukraine's second-biggest military backer after the United States. Orders that might once have taken years to approve now take months and European startups have had the opportunity to test their products quickly in the field, several sources said. Venture capital funding of European defence tech hit $1 billion in 2024, up from a modest $373 million in 2022, and is expected to surge even more this year. 'Society has recognized that we have to defend our democracies,' said Christian Saller, general partner at HV Capital, an investor in both ARX and Quantum Systems. Venture capital funding has grown faster in Germany than elsewhere, according to a data analysis by Dealroom for Reuters. German defence startups have received $1.4 billion in the last five years from investors, followed by UK, the data shows. Jack Wang, partner at venture capital firm Project A, said many German defence startups – rooted in the country's engineering prowess – are good at integrating established components into scalable systems. 'Quality of talent in Europe is extremely high, but as a whole, there's no better country, no better talent that we've seen other than in Germany,' he said. Weakness in Germany's automotive industry means there is production capacity to spare, including in the Mittelstand: the small and medium-sized enterprises (SMEs) that form the backbone of Germany's economy. Stefan Thumann, CEO of Bavarian startup Donaustahl, which produces loitering munitions, said he receives 3 to 5 applications daily from workers at automotive companies. 'The startups just need the brains to do the engineering and prototyping,' he said. 'And the German Mittelstand will be their muscles.' ($1 = 0.8560 euros) Reporting by Supantha Mukherjee in Munich, Sarah Marsh in Berlin and Christoph Steitz in Frankfurt; Additional Reporting by Sabine Siebold in Berlin; (Reuters
Telegraph
9 hours ago
- Business
- Telegraph
Germany passes ‘Bundeswehrbeschaffungsbeschleunigungsgesetz' law to streamline army
Germany has passed a law titled the 'Bundeswehrbeschaffungsbeschleunigungsgesetz' to speed up the process of buying helicopters, tanks and frigates for its army. In a country notorious for cumbersome bureaucracy, weapons procurement is being streamlined as part of a rearmament plan by Friedrich Merz, the German chancellor. Ironically, the law, which is supposed to make life easier for defence contractors and trade negotiators, is one of the longest words in the German language and difficult to pronounce. Passed on Wednesday, ministers hope the Bundeswehrbeschaffungsbeschleunigungsgesetz [federal armed forces procurement efficiency law] will simplify the process of buying weapons and equipment. It will enable major defence firms to secure contracts faster and improve access for start-up businesses, particularly in new areas of defence, such as the drone sector. Boris Pistorius, German defence minister, is said to be frustrated by long delays in acquiring new kit for the Bundeswehr, the German armed forces, such as frigates and armoured vehicles. According to Tagesschau, a German news website, his defence ministry is particularly worried about progress on the F126 frigate project, which is expected to be delayed by at least two years. Another contract with a Dutch company to provide the German navy with six ships by 2028 has also run aground, the newspaper said, amid speculation that the deal could be dropped altogether. A multi-billion euro project to deliver the Heavy Weapon Carrier, a high-tech armoured vehicle, has also been plagued by delays. The Bundeswehrbeschaffungsbeschleunigungsgesetz is part of Germany's wider efforts to become a major security power in response to the full-scale Russian invasion of Ukraine. Mr Merz has vowed 'Germany is back' and has already passed historic reforms to unlock potentially unlimited public spending on new German defence projects. The centre-Right Christian Democrats leader has committed to Nato's target of spending 5 per cent of GDP on defence, and is also considering a return to conscription, which was scrapped by Germany in 2011 because it was believed to be no longer necessary. The Bundeswehr this year launched its first permanent overseas deployment since the Second World War, sending an armoured brigade to Lithuania to help secure Nato's eastern frontier with Russia. Running at 43 letters long, Bundeswehrbeschaffungsbeschleunigungsgesetz is one of the longest words in German. Germany is no stranger to having very long names for laws and business regulations, such as 'Rindfleischetikettierungsueberwachungsaufgabenuebertragungsgesetz,' an archaic rule about beef standards which was once the longest German word. The longest official German word, at 72 letters, is Donaudampfschiffahrtselektrizitätenhauptbetriebswerkbauunterbeamtengesellschaft, referring to a trade association for steamboats.
The Star
10 hours ago
- Business
- The Star
Germany to ease, expand defence procurement to quickly boost military
German Defence Minister Boris Pistorius visits the Innovation Lab of Germany's Army Bundeswehr in Erding, Germany, July 22, 2025. REUTERS/Angelika Warmuth BERLIN (Reuters) -Germany's cabinet approved a draft law on Wednesday aimed at accelerating defence procurement and construction on military bases, part of a broad effort to better defend itself and allies in response to a more assertive Russia. The bill, which supports German efforts to meet higher NATO defence spending targets, also widens the definition of military needs to include civilian-related items such as medical supplies and construction materials. U.S. President Donald Trump has demanded that European allies in NATO spend much more for the defence of their continent, accusing them of having long taken the outsized U.S. role in protecting Europe's security for granted. "With this draft law, we are removing many of the constraints that have prevented us from moving even faster," Defence Minister Boris Pistorius said after the cabinet meeting. "We can now truly focus on what matters in the interests of the Bundeswehr's defence capability and equipment," he said. Under the proposed legislation, mandatory tendering requirements for defence contracts will be relaxed - or waived entirely in particularly urgent cases. Large contracts will no longer need to be split into smaller tenders. The threshold for triggering a formal procurement procedure will rise, in general, to 50,000 euros ($58,685) from less than 15,000 euros, Economy Minister Katherina Reiche said. For construction projects, the threshold will increase to 1 million euros, and to 443,000 euros for other goods and services, she added at a press conference alongside Pistorius. Environmental standards will also be eased - for example, in the construction of military barracks - while military airports will receive special consideration and protection. "Time is the decisive factor," the text of the draft legislation states, citing the threat posed by Russia in the face of its 2022 full-scale invasion of Ukraine. The legislation is initially set to remain in force for 10 years. Earlier this year, Chancellor Friedrich Merz relaxed constitutionally enshrined debt limits to enable higher defence spending. That move allowed Berlin to raise defence expenditure to 3.5% of GDP by 2029 — a sharp increase from the 2% NATO quota it met in 2024 for the first time in three decades. ($1 = 0.8520 euros) (Reporting by Markus Wacket and Miranda Murray; editing by Mark Heinrich)
