Germany's Scholz calls on European defence partners to cooperate more

German Chancellor Olaf Scholz promised his government will support the defence industry and called for closer cooperation between producers in Europe as he opened a trade fair on Wednesday.

"Today we see more clearly than ever how important it is to have a European and German defence industry that can continuously produce all major types of weapons and the necessary ammunition," he told the International Aerospace Exhibition (ILA) in Berlin.

He said Germany had "given the industry too much of a wide berth in the past," but "that is over. Russia's attack on Ukraine in violation of international law has presented the whole of Germany with a new security policy reality."

Scholz said he was "strongly in favour of maintaining and expanding production capacities. That is why we will order 20 more Eurofighters in this legislative period, in addition to the 38 aircraft that are currently still in the pipeline."

Closer cooperation between European partners is necessary, he added, to avoid duplication that Europe cannot afford. What is needed, he said, is focus to reflect the strengths of the respective industries, to promote interoperability between Europe's armed forces. German industry should be "right at the forefront," he added.

Earlier, he said the government has "the greatest interest in a strong aerospace industry in Germany and Europe."

Scholz faces pressure at home to keep his promise to massively boost the military.

German security and defence policy associations have called for the financing of further equipment for the Bundeswehr to be secured beyond 2025.

They argue that the specially allocated fund of €100 billion ($109 billion) is far from sufficient to cover far from sufficient to cover requirements.

The industry is responding to current geopolitical challenges with innovations, said Michael Schöllhorn, president of the German Aerospace Industries Association. "Civil aviation is presenting advances in sustainability that will also become a competitive advantage."

However, the industry is also "under pressure" and needs to be able to rely on defence budgets and orders for the security of medium-sized companies and suppliers whose capacities and capabilities will be "crucial in the future," he said.

The ILA features some 600 exhibitors from 30 countries, at a fair running until Sunday.