•German Defense Chief Calls for Increased Military Spending, Cites Russia as a Threat
The European Union has exhausted its weapons stockpiles due to prolonged military support for Ukraine, leaving the bloc vulnerable to potential security threats, including from Russia, according to Armin Papperger, CEO of German arms manufacturer Rheinmetall.
In an interview with the Financial Times published Monday, Papperger urged EU nations to ramp up defense spending, arguing that current investments remain inadequate despite a significant boost in military budgets since 2021.
His remarks come amid renewed diplomatic efforts to initiate peace talks between Russia and the United States, marking the first such engagement since the outbreak of the Ukraine conflict.
EU’s Military Shortfall and Strategic Risks
Speaking on the sidelines of the Munich Security Conference, Papperger emphasized the precarious state of European and Ukrainian military reserves.
“The Europeans and the Ukrainians have nothing in their depots,” he stated, underscoring the depletion of arms among NATO allies and Ukraine itself.
He warned that even if a ceasefire were achieved, the demand for weapons would remain high due to the lingering security concerns in the region.
“Even if the war [in Ukraine] stops — if we think that we have a very peaceful future, I think that’s wrong,” he cautioned.
Despite a more than 30% increase in EU defense spending between 2021 and 2024, Papperger asserted that the additional funding has not been sufficient to address Europe’s security challenges.
He attributed the shortfall to decades of underinvestment in defense, a factor he believes contributed to the EU’s exclusion from the recent Riyadh talks, where Russia and the US initiated discussions on conflict resolution without the participation of Ukraine or Washington’s European allies.
US Shift in Military Strategy and Ukraine’s Growing Burden
The CEO’s warning comes as the United States signals its intent to reduce direct military involvement in Ukraine.
Washington has been pressuring European allies to take on greater financial and logistical responsibilities in supporting Kyiv, raising concerns about long-term military sustainability.
Ukrainian President Vladimir Zelensky recently acknowledged the growing challenge, stating that without NATO security guarantees, Ukraine would need to expand its army to 1.5 million troops, requiring a 50% increase in defense funding to sustain such a force.
Rheinmetall’s Booming Profits Amid Global Instability
While the ongoing conflict and rising global tensions have placed strain on European military resources, they have also significantly benefited arms manufacturers.
Rheinmetall, a key supplier of military equipment to Ukraine, has seen a dramatic rise in its financial performance.
Papperger projected that the company’s annual sales would soar to between €30 billion ($32 billion) and €40 billion ($43 billion) within five years—an extraordinary increase from its €6 billion ($6.4 billion) revenue in 2021, before the Ukraine war escalated.
The defense firm previously acknowledged that the conflict had “significantly improved business performance,” as demand for military equipment surged across the EU and NATO allies.
Russia’s Response to Western Arms Shipments
Moscow has repeatedly condemned Western arms deliveries to Ukraine, arguing that they prolong the war without altering its outcome.
The Kremlin has also warned that continued military support to Kyiv increases the risk of a direct confrontation between Russia and NATO.
Despite these warnings, Western nations, particularly the EU, appear poised to continue ramping up their military capabilities.
With defense industries profiting from the surge in demand, the pressure on European governments to sustain or even increase defense spending remains high, even as diplomatic efforts to de-escalate the conflict move forward.
As the geopolitical landscape continues to shift, the EU faces a critical decision: whether to double down on military investments or seek alternative security strategies that could ease tensions without further depleting its already strained resources.
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