German FM Pledges to Cut Red Tape for Defense Investments Amid Ukraine War

German FM to boost investment: German Finance Minister Christian Lindner announced plans to streamline regulatory processes for investments in defense companies as Germany escalates military spending in response to the Ukraine conflict.

Lindner, speaking at the Munich Security Conference, emphasized the government's commitment to reducing the stigma around investing in defense. Chancellor Olaf Scholz's administration aims to boost defense spending rapidly in the wake of Russia's invasion of Ukraine, achieving NATO's 2 per cent GDP defence spending target for the first time since the Cold War. 

Lindner called for a "second turning point" to enhance conditions for the defense industry, emphasizing the need for private investments alongside state support. The Finance Ministry is engaging with financial and security industry representatives to address regulatory hurdles and improve the sector's reputation.

Lindner said a second "Zeitenwende" was needed to improve the framework conditions for the defense industry in Germany. "The state is a client and customer of the security and defence industry, but the companies still need private investments and financing," he said. 

"That's why a second turning point is necessary that improves the reputation and framework conditions for the industry." His ministry said the German government was holding discussions with representatives from the financial sector and the security industry on the sidelines of the Munich conference. 

"We will reduce regulatory hurdles in the EU and Germany," said Lindner, without specifying which ones. "At the same time, there is a clear message that the federal government stands behind this sector. Banks, insurance companies, and funds should no longer shy away from commitments because they fear for their public image."

With Reuters input