German Defense Minister Proposes Government Stake in Key Military Companies
German Defense Minister Boris Pistorius has proposed the government becoming a shareholder in key military companies. The move aims to retain expertise and jobs in Germany, with support from other Cabinet members, including the finance minister.
Hans Christoph Atzpodien, chairman of BDSV, has welcomed the proposal, seeing it as a way to secure domestic skills and jobs in strategic technology areas. However, he also warned against heavy-handed government interference, which could deter private investment and harm both companies and the government.
In principle, the German Defense Minister would oversee the state's involvement in key defense industry companies. In the case of Hensoldt, the federal government holds a 25.1% stake acquired through the government-owned KfW development bank at the end of 2020. This is not an isolated incident, as other European governments, such as France, Italy, Spain, Sweden, and Norway, also maintain stakes in their local defense companies.
The German government is considering investing in more key military companies, with KNDS, a German-French tank maker, and ThyssenKrupp Marine Systems being targeted. The government previously bought a blocking minority stake in Hensoldt in 2021 for geopolitical reasons, indicating a strategic interest in maintaining control over domestic defense capabilities.
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