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Germany pledges to meet 2% NATO spending target and increase production of artillery
German Chancellor Olaf Scholz, German Defence Minister Boris Pistorius and CEO of Rheinmetall Armin Papperger visit a production line at the future site of an arms factory where weapons maker Rheinmetall plans to produce artilleries from 2025, in Unterluess, Germany February 12, 2024. REUTERS/Fabian Bimmer/Pool
On Monday, German Chancellor Olaf Scholz assured defence companies that his government would increase military spending, reaffirming its commitment to allocate 2% of GDP to NATO defence.
Scholz’s remarks came in response to former U.S. President Donald Trump’s controversial suggestion that the United States might not defend NATO allies failing to meet defence spending targets against potential Russian aggression.
During his tenure, Trump publicly criticized nations failing to meet NATO’s 2% GDP defense spending goal.
Scholz emphasized the necessity for Germany and Europe’s defence industry to transition to mass production of weaponry, citing the strain on European manufacturers during the Ukraine conflict due to ammunition shortages.
Speaking at the future site of Rheinmetall’s arms factory in central Germany, Scholz stated, “We must shift from manufacturing to large-scale production of defence equipment.”
He urged both the United States and European nations to increase support for Ukraine, highlighting that current pledges are insufficient and Germany’s efforts alone are inadequate.
Scholz assured the military and Germany’s defense industry of Berlin’s commitment to meeting the 2% NATO target, stressing the urgency given the prevailing security challenges.
He advocated for European nations to pool their arms procurement to fulfill long-term commitments, contrasting the predictability of civilian product manufacturing with the complexities of arms production.
Rheinmetall, a major producer of artillery and tank shells globally, has increased production in response to Russia’s invasion of Ukraine, addressing the heightened demand for ammunition.
CEO Armin Papperger noted that the construction of the new factory reflects changing circumstances, aiming to produce around 200,000 artillery shells annually and create 500 new jobs.
With a planned investment of 300 million euros ($323 million), Rheinmetall intends to meet the Bundeswehr’s ammunition requirements and ensure timely deliveries to partner nations during crises by establishing a complete artillery ammunition value chain at the Unterluess factory.
