Industry demands long-term certainty as Berlin mulls buying in.
Germany is considering a more interventionist role in its defence sector, with Defence Minister Boris Pistorius backing government stakes in key companies to safeguard skills and jobs and accelerate production capacity.
The shift would mark a departure from Berlin’s traditionally limited state ownership and aligns with the governing coalition’s pledge to pursue strategic investments. Officials argue direct capital injections could help expand output quickly, while signalling political commitment to firms central to national security. The debate comes as the country plans to spend more than €500 billion on defence in the coming years, amid pressure from NATO and the European Commission for joint orders to curb price inflation and shorten delivery timelines.
ThyssenKrupp Marine Systems, the warship builder preparing a spin-off and stock market listing in 2026, has emerged as a potential candidate for state investment. The company says it is focused on the separation and initial public offering and that it is too early to discuss ownership structures. Advocates of partial state participation say it could provide financial stability and strengthen companies’ competitiveness in major procurement tenders.
Across Europe, governments in France, Italy and Spain retain significant equity stakes in defence champions, a model some in Berlin now view as a way to shield strategic capabilities from foreign influence. Maximilian Lasson of law firm Freshfields notes safeguarding domestic know-how has become a priority. Yet additional state influence is not universally embraced in boardrooms, even if firms often accept it where governments are the dominant customers. Industry leaders have criticised calls to ramp up production without long-term contracts; Berlin could also steer outcomes through contract specifications rather than ownership.
At EU level, the push for consolidation includes reducing incompatible weapon systems, a goal championed by European Union Defence Commissioner Andrius Kubilius. A draft European Defence Industry Programme designed to enable group funding applications remains stuck in negotiations.