Hensoldt Boss Urges Germany to Spend 3% of GDP on Defense

German defense electronics manufacturer Hensoldt's CEO, Thomas Mueller, has called on the German government to increase its defense spending to 3% of the country's GDP. In an interview with Reuters, Mueller emphasized the need for higher investment in the defense sector to ensure the country's security and maintain its competitive edge in the global market.

Mueller's call comes amidst a surge in defense spending across Europe, driven by Russia's invasion of Ukraine and growing geopolitical tensions. Germany, in particular, has been under pressure to increase its defense budget, with NATO urging member states to spend at least 2% of their GDP on defense. However, Germany's defense spending has consistently fallen short of this target, with the country currently spending around 1.4% of its GDP on defense.

Mueller argued that increasing defense spending to 3% of GDP would not only enhance Germany's military capabilities but also stimulate economic growth and job creation in the defense sector. He pointed to Hensoldt's own growth prospects, with the company expecting to double its turnover in the next few years due to increased demand for its products and services.



Mueller's call for increased defense spending has been echoed by other industry leaders and political figures. In November 2024, Rheinmetall AG, another leading European defense contractor, reported a surge in earnings due to increased orders for armored vehicles, ammunition, and air defense systems. The company's order backlog jumped 41% in the third quarter of 2024, reaching €51.9 billion.

However, increasing defense spending to 3% of GDP may face resistance from some segments of the German population and political spectrum. A survey by the Jesse Kolber Foundation found that more than 71% of Germans do not want the country to take on a military leadership role in Europe, and nearly 75% object to a more militarized foreign policy.



In conclusion, while increasing defense spending to 3% of GDP could have significant economic and security benefits for Germany, it may also face political and public resistance. The German government must weigh the potential gains against the risks and ensure that any increase in defense spending is targeted, efficient, and supported by the German population.