Rheinmetall head says EU needs to create large defense companies

Armin Papperger, head of German defense concern Rheinmetall, said on January 25 that more defense companies with a turnover of about €40 billion should be created in Europe.

According to Papperger, the group's turnover will increase to €20-25 billion in the medium term, but it is still not large enough to compete with U.S. defense technology groups. He noted that larger defense companies with a turnover of around €40 billion should emerge in Europe.

In addition, Papperger talked about the Franco-German MGCS (Main Ground Combat System) tank. The head of Rheinmetall said that over the course of five years, progress on the MGCS has been quite small. In his opinion, direct cooperation between the companies is more successful.

"We are doing this through our new joint venture with the Italian company Leonardo," Papperger was quoted as saying by the report-K newspaper.

He also added that the sales of the joint venture could amount to €50 billion over the next 10 years. The head of the concern noted that for the project to be successful, it must be European, not bilateral.

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Earlier, on December 2, 2024, Armin Papperger said that €350-400 billion is needed to modernize the German Armed Forces. He called on Berlin to increase defense spending because of the election of Donald Trump as US President, as well as to allocate new funds to Kiev before the early parliamentary elections in Germany.

On November 24, German Defense Minister Boris Pistorius called on the country to invest more in its military capabilities. The same month, he said that the Bundeswehr was short of €6 billion for modernization in 2025.

Bild reported in September that supplies to Ukraine had devastated the Bundeswehr, and at the current rate of procurement, Germany would only be able to rebuild its weapons stockpile in 100 years. Researchers then concluded that the country needs a defense budget of €100 billion a year.