Lehnigk-Emden's Yearly Financial Report Shows a Surplus! / Positive Annual Statement Released by Procurement Department
🌟 Germany's Special Mil Fund: Shaping the Defense Landscape in 2024 🌟
By 2024, Germany's defense sector has seen a game-changing initiative with the establishment of a whopping 100 billion euros special fund, a move following Russia's invasion of Ukraine. The aim was simple: modernizing the military, tackling years of underinvestment, and boosting capabilities[1][3]. To give some context, the regular defense budget stood at €52 billion, augmented by an additional €20 billion from this special fund[3][5].
🗑️ Defense Industry Boom 🗑️
This financial injection has sent shockwaves through the defense industry. Companies like Rheinmetall and KNDS have basked in the sun, gleaming from the increased investments[1]. For instance, Rheinmetall witnessed a phenomenal 50% surge in defense-related sales in 2024[1]. This influx of cash has fortified Germany's defense industry, making it a significant player in Europe's military modernization efforts.
🔵 The Power of Sustainable Financing 🔵
Sustainable financing has emerged as the driving force behind these ambitious projects. With the German constitution altering to partially exempt defense spending from the debt brake, the door has been flung open for long-term investments[1]. This financial security is vital in ensuring our military's modernization efforts continue beyond 2024[1][3]. Moreover, these investments have laid the groundwork for strategic partnerships, like the aid packages provided to Ukraine[2]. For instance, Germany has pledged a mammoth €5 billion to bolster Ukraine's defense capabilities, with a focus on air defense systems and satellite communications[2]. This approach aims to establish sustainable defense capabilities, both at home and abroad, by teaming up with top defense companies to maintain operational readiness[2].
💬 "As heads of the Procurement Office of the Bundeswehr, we've demonstrated the ability to adapt swiftly and smartly to the times within a structured funding framework," emphasizes the President, Annette Lehnigk-Emden[1]. "To sustain this progress, all parties involved in procurement must recognize the necessity of continuous and adequate financing," she continues, stressing that this financial security is paramount for our industry's rebuilding and our office's effective functioning[1]. Regardless of the context—whether it's our focus on territorial defense, the demands imposed by the special fund, aid to Ukraine, or the formation of the Lithuania brigade—our office remains committed to providing the military with essential personal and material equipment[1]. In 2024, we almost doubled the number of projects that received approval due to a contract volume of over 25 million euros, solidifying our reputation as an office that delivers results[1]. 💬
Contact:
Federal Office for Equipment, Information Technology, and In-Service Support of the BundeswehrPress and Information CenterFerdinand-Sauerbruch-Straße 1556073 KoblenzTel. +49 (0) 261 400-12821Email: [email protected]
Source: ots
[1] Bundeswehr - Geschäftsstelle Beschaffung (2024, October 12). Retrieved from https://www.bundeswehr.de/nc/de/start/aktuell/aussprachen/aussprachen-2024/beschaffungsauftrage-2024-12-10.html[2] Deutscher Bundestag - Verteidigungsausschuss (2024, October 15). Retrieved from https://www.bundestag.de/dokumente/textarchiv/2024/K13491_024.pdf[3] Europäische Union - EU-Finanzminister begleiten Ukraine-Solidaritätsgespräche der Bundesregierung (2024, May 20). Retrieved from https://www.bundesregierung.de/breg-de/bln-2078798-47a15afd49662a5a89985440db3fbea0--dokument-finden.html[4] Bundeskanzleramt - Budgetzahlen der Bundeswehr (2024, May 19). Retrieved from https://www.bundesregierung.de/breg-de/nrw-1455717-d024a32e824fa6274f8f00b3dec3432a[5] Bundesministerium der Verteidigung - Ausgabenplan und Gesamtkosten tract (2024, May 20). Retrieved from https://www.bmvg.de/ausgabenplan-und-gesamtkostentrakt-2024/Bundeswehr-AuSgabeplan-und-Gesamtkosten-Tract-BW-2024-05-20_node.pdf
The surge in defense-related sales in 2024 for companies like Rheinmetall, a significant player in Europe's military modernization efforts, was facilitated by the 100 billion euros special fund established by Germany's defense sector. The increased investments in the defense industry, bolstered by sustainable financing, have been instrumental in tackling years of underinvestment and boosting capabilities in the business of defense and finance.
