Rheinmetall, Germany’s largest arms company, expressed that the plans by European countries to significantly increase their defense spending presents a remarkable opportunity for the company’s growth.

European capitals have recently announced their intentions to boost defense expenditure amid concerns over the US’s commitment to the continent’s security under President Donald Trump.

Rheinmetall expects a significant surge in demand for its products due to the new era of rearmament in Europe, according to the company’s CEO, Armin Papperger. He stated that the planned development opens up unprecedented growth prospects for the next few years.

The German defense industry is set to become a global powerhouse, according to Papperger. The company expects its overall sales to rise by 25-30% by 2025 with the ongoing Russia-Ukraine conflict and the US’s gradual withdrawal from Europe’s defense.

Even though the company estimated that defense sales would increase by 35-40% this year, they did not factor in the recent geopolitical developments that could enhance the market potential.

Germany’s next chancellor, Friedrich Merz of the Christian Democrats (CDU), along with his prospective coalition partners, the Social Democrats (SPD), proposes lifting constitutional spending limits for defense. This reform could result in tens of billions of euros being allocated annually for the military to fortify the country’s defense sector.

Other European leaders have made similar pledges to increase defense spending and continue supporting Ukraine with military aid due to the uncertainty around the US’s reliability as a defense partner.

The European Commission aims to mobilize up to €800 billion ($863 billion) for European defense, including a plan to lend up to €150 billion euros to national governments.

Source: https://www.dw.com/en/germany-s-rheinmetall-eyes-growth-chance-as-europe-rearms/a-71896640?maca=en-rss-en-all-1573-rdf