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Germany is expected to spend hundreds of billions of euros on defense by 2030. Budget experts warn of the risk of inflated prices and waste.
In the face of a large increase in the defense budget, financial experts in the German parliament, the Bundestag, and the Federal Office of State Control and Audit are warning of inflated prices in the arms industry.
There is a strong tendency to increase prices in this sector, the SPD rapporteur for the defense budget, Andreas Schwarz, told the Redaktionsnetzwerk Deutschland (RND) agency. "When the customer is the Bundeswehr, different prices are set," he said.
Doubling the price for fuel containers
The Green Party's budget policymaker, Sebastian Schaefer, criticized the costs of procurement projects for the German Bundeswehr, which are sometimes too high by international standards. As an example, the two politicians mentioned fuel containers for Bundeswehr troops, where it is not clear where the large cost increases came from.
According to RND reports, the unit price has doubled in four years, from 142,000 to around 291,000 euros. For this reason, budget experts have temporarily blocked the continuation of orders for fuel containers. One of the reasons for this development is the lack of competition, said Schwarz. He demanded that in the future this should be controlled more strictly through competition law.
The Federal State Audit Office also said that the special fund for the military could negatively affect price developments. If an organization has too much money available in a short time, the risk of inefficient spending increases, it said in a special report from May 2025./DW
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