Germany considers diverting ‘green’ subsidies to weapons production: Report
Germany is considering using funds intended for phasing out coal-fired power plants to help arms manufacturers produce more weapons, a new report has revealed.
Citing sources familiar with the matter, Bloomberg reported on Friday that discussions are underway between Berlin and regional states about providing the country’s armed forces with more weapons and ammunition and creating jobs in regions affected by the shift away from coal.
Germany’s armed forces, the report said, have been suffering from outdated and partly dysfunctional equipment for years.
Since the onset of the war in Ukraine last February, Berlin earmarked 100 billion euros ($109 billion) in defense spending to expand and modernize its armed forces.
As part of the move, German defense contractor Rheinmetall AG said it plans to produce ammunition for the 30 “Gepard” self-propelled anti-aircraft guns, which Chancellor Olaf Scholz’s coalition agreed to supply to Ukraine.
Separately, the facility is looking into the construction of an additional factory to produce basic materials and components for ammunition in the eastern state of Saxony which is affected by the coal-exit, according to Bloomberg.
The plans are still in the early stage and could be subject to change, it added.
The development came as Germany decided to re-launched several reserve coal-fired plants last year to save up its gas supplies for winter.
It has also extended the operation of existing plants up to the end of March 2024, due to an energy crisis.
The war between Ukraine and Russia has massively contributed to the rise of oil and gas prices as both Russia and the West play hydrocarbon supplies as a bargaining chip to force the other’s hand.
The market price of fuels and electricity has adjusted accordingly, triggering double-digit energy inflation across Europe.
Despite the energy crisis, the European Union, the UK, and the US keep supplying Kiev with lethal military hardware. According to multiple reports, the efforts to provide Ukraine with weapons, have prompted munitions and equipment shortages in Europe.
Citing defense industry and parliamentary sources, Business Insider said in a report in October that the German army had enough ammunition for only one or two days of warfare.
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