The German Aerospace Industries Association (BDLI) has warned that budget cuts and tighter export controls are threatening the future of the country's defence businesses.
BDLI president Dr Gustav Humbert says the Berlin government's decision to tighten export guidelines "puts Germany on a solo path and seriously handicaps the position of the German defence industry within European partnerships". DaimlerChrysler Aerospace is to merge with Aerospatiale Matra and CASA later this year to form European Aeronautics Defense and Space.
The German defence budget has shrunk since 1990 and contractors have seen revenues fall 51% and shed 57% of their workforces during this time, Humbert claims.
Humbert warns that the country risks losing core competencies in key areas "as has already occurred in guided missiles and communications and control systems".
Source: Flight International