2010-01-18 12:31:02 - Germany Defence and Security Report Q1 2010 - a new market research report on companiesandmarkets.com

www.companiesandmarkets.com/Summary-Market-Report/germany-defenc ..

The re-election of Angela Merkel’s Christian Democratic Union (CDU) party in the September 2009 general election, with an enhanced mandate to allow it to formal a centre-right coalition with the Christian Social Union of Bavaria party, has significantly changed the centre of gravity of German foreign and defence policy. Merkel has expressed strong support for US President Barak Obama’s policies in Afghanistan, Iran and elsewhere. She has also brought Germany closely in line with France’s President Nicolas Sarkozy. This is likely to result in Germany enhancing its military and diplomatic engagement in Afghanistan when President Obama announces his expected ‘troop surge’ in the last weeks of 2009. This might have to be compensated by a reduction in the German military

 

 

presence in Kosovo or Lebanon.

The return to power of the CDU party in September’s election has not immediately led to major changes in defence policy, but media reports suggest that the German government will hold a defence review to allow the 2011 defence budget to be set. Early indications that Germany is to cut its orders for Eurofighter Typhoons and possibly the A400M, as well as not buy enough new armoured fighting vehicles to replace the existing fleet on a one-for-one basis, suggest that any review will have to address manpower reductions and re-organisations of air force and army units. The new defence minister, Karl-Theodor zu Guttenberg, from the Christian Social Union of Bavaria party, is a keen proponent of German membership of the Atlantic Alliance. While the new coalition is unlikely to make major cuts in defence spending, economic conditions will prevent the launching of any major new programmes.

Meanwhile, Germany’s Diehl BGT won a major order from Saudi Arabia in September 2009 to supply IRIS-T air-to-air guided missiles for use on the desert kingdom’s Eurofighter Typhoon and Panavia Tornado combat aircraft. This is the first major export order outside Europe and was a significant setback for rival missile companies, Raytheon and MBDA, who have long track records of missile sales to Saudi Arabia. It also emerged in October 2009 that Germany is unlikely to move ahead with its final order for 37 Typhoon aircraft under the so-called Tranche 3B from 2012. This would cap the Luftwaffe Typhoon fleet at 143 aircraft rather than 180 as originally planned. The German Ministry of Defence is now to offer the remaining Tranche 3B aircraft for export. Germany’s role in Afghanistan is coming under increasing scrutiny. German forces were involved in a major incident in northern Afghanistan in September as the region increasingly came under threat from Taliban and Islamic Movement of Uzbekistan insurgents. The German government has moved to try and dampen public disquiet at the growing threat to the 4,300-strong German contingent in Afghanistan by calling for a major international conference to re-focus international efforts in the central Asian country.