Germany Lacks Industrial Strategy

Despite Germany’s announced intention to increase defence spending, it lacks an effective industrial strategy for the sector. Credit: File image.

Germany’s promise to increase its defence budget to 2% of its gross domestic product (GDP) by 2024, with this figure then being sustained as an average across a rolling five-year period, will equate to a defence budget of $82.0bn in 2024, rising to $85.7bn in 2027, according to GlobalData.

This will result in a positive compound annual growth rate (CAGR) of 5.0% between 2023 and 2027, which is a slower rate of growth compared t …