The core message of the new strategy for the security and defence industry (SDI), adopted by the German cabinet on 4 December 2024, is to produce more defence equipment faster. To achieve this, Germany plans to expand domestic production capacities, simplify cross-border defence cooperation and procurement, and to promote key technologies.

The document outlines a clear vision for reinforcing the security and defence economy. It also sends a strong signal to this strategically relevant sector and underlines its indispensable contribution to Germany’s defence capability. The strategy paper, jointly developed by the Federal Ministries of Defence and Economic Affairs after a lengthy coordination process, replaces the previous version from 2020. This updated edition reflects the dramatically changed security landscape in Europe, shaped by the war in Ukraine more than three years ago. With this strategy, the German Federal Government is pursuing the goal of further developing the security and defence industry in Germany and in Europe. The highest priority is given to meeting military-industrial requirements for national and alliance defence. The focus is thereby on building a dynamic, scalable, innovative, and adaptive industry – one that must be internationally competitive and capable of meeting the needs of the Bundeswehr as well as the demands of security authorities and agencies.

BDSV AND BDLI: NEW STRATEGY – AN IMPORTANT INTERIM STEP

In a joint statement, the German Security and Defence Industry Association (BDSV) and the German Aerospace Industries Association (BDLI) described the new strategy as an “important interim step” and a “constructive approach” for this industry sector. Dr Hans Christoph Atzpodien, managing director of the BDSV, said: “Looking at the immense challenges involved in closing the capability gaps in the Bundeswehr and continuing to provide support to Ukraine, what’s needed above all is the rapid operationalisation of the action areas outlined in the strategy.” It would be desirable for the industry to build on the agreed results – and those to be further developed – in cooperation with federal government.

DEFINITION MUST BE FOLLOWED BY IMPLEMENTATION

A careful analysis of the SDI strategy reveals that it is not a hastily assembled “loose leaf collection“, but a well-considered document with clear strategic goals. However, this document will not meet all the expectations and demands of the defence industry. This comes as little surprise, given the extremely challenging political coalition dynamics under which the strategy was developed. While the paper was still going through internal coordination in Berlin, the coalition government – the so-called traffic light alliance – began to disintegrate in a dramatic act of political self-dismantling. This internal crisis delayed the publication of a strategy the industry had awaited for so long.

What matters now is that the strategy will actually be implemented. Much, if not everything, will depend on the extent to which the new federal government, elected on 23 February, is willing to push forward with the defined measures and hence develop them in more detail. The outgoing Bundestag laid the financial groundwork for this at literally the last minute by loosening the debt brake for defence and security.