2024-02-18 05:27:04
The German government will ease the procedures for investments in military companies. This was announced today by German Finance Minister Christian Lindner, quoted by Reuters.
Lindner told Reuters on the sidelines of the Munich Security Conference that his government wants to work to reduce the difficulty for some investors in putting their money into defense companies. Chancellor Olaf Scholz’s government has promised to rapidly increase military spending after Russia invades Ukraine in 2022, BTA writes.
This week, Germany said it would, for the first time since the end of the Cold War, meet NATO’s goal of spending 2 percent of its gross domestic product (GDP) on defense, and called on other countries to join the United States in financial support for Ukraine.
Lindner said a second “tipping point” was needed to improve the framework conditions for Germany’s defense industry.
“The state is a client and contractor of the security and defense industry, but companies still need private investment and financing,” he said. “This is why a second turning point is needed to improve the reputation and framework conditions for the industry,” the minister added.
His ministry said the German government was holding discussions with representatives of the financial sector and the military industry in the framework of the Munich conference.
“We will reduce the regulatory obstacles in the EU and Germany,” Lindner said, without specifying which they were. “At the same time, there is a clear message that the federal government stands behind this sector. Banks, insurance companies and funds should no longer back away from their commitments because they fear for their public image,” concludes the member of the German government.