Germany’s planned ammunition cuts could hit Rheinmetall hard - Bloomberg
Photo: German military (from open sources)
The German government plans to cut spending on ammunition in 2027, which could exacerbate problems for Rheinmetall, one of Europe's largest arms manufacturers, according to Bloomberg.
Ammunition spending will be cut
According to the draft federal budget, which may still be amended, about €9.6 billion is planned for ammunition procurement in 2027, compared to €11 billion in 2026.
At the same time, Germany's overall defense spending will continue to rise significantly until 2030, but funding priorities will shift.
As Bloomberg notes, the funding cut could deepen the difficulties of Rheinmetall, one of Europe's largest arms manufacturers. Since the beginning of the year, the company's shares have lost more than 30% of their value amid investor concerns about the company's prospects and changes in Berlin's approach to military procurement.
Despite the possible cut in ammunition spending, Germany is not abandoning its large-scale rearmament. Berlin continues to increase the overall defense budget and invest in other areas of Bundeswehr modernization, changing the structure of military expenditures.
Recently, it was reported that Germany has seen a sharp increase in the number of young men who officially refuse military service on conscientious grounds.
And recently, Berlin presented the first national military strategy in the country's history, in which Russia was named the main threat to Europe's security.
