German Chancellor Friedrich Merz has stepped up scrutiny of military procurement amid mounting concerns that large manufacturers such as Rheinmetall will benefit disproportionately from the country’s €500bn defence budget.
Merz and his finance minister Lars Klingbeil are seeking greater oversight of the defence ministry and of procurement decisions, according to five people familiar with the matter.
They want to ensure that hundreds of billions of euros in debt-funded spending do not simply benefit groups such as Rheinmetall, which produces ammunition, armoured vehicles and components for the Leopard 2 tank, but also reach start-ups focused on unmanned systems and military applications for AI and quantum technology.
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