Andrzej Jeziorski/MUNICH
HUGE cuts in the latest German defence budget, approved by the cabinet on 10 July, have left questionmarks over the Eurofighter EF2000, Eurocopter Tiger and Helios 2/Horus reconnaissance satellite and procurement programmes.
The 1997 defence budget has now been fixed at DM46.6 billion ($30.5 million), compared with the DM48.4 billion the defence ministry had planned.
Current plans suggest that this figure will rise to DM47 billion in 1998, DM47.7 billion in 1999 and DM48.5 billion in 2000.
The figures represents an overall DM7 billion cut in defence spending up to the year 2000 compared with earlier expectations, while still being significantly less savage than finance minister Theo Waigel's controversial attempt to freeze defence spending at DM46 billion a year until the end of the century.
The cuts have raised fears for the future of some of Germany's key defence programmes.
"It looks like one project will have to go: it will probably be the [Franco-German reconnaissance] satellites, but it could equally well be the Tiger," says one Bonn diplomatic source.
A German Government source adds that the Eurofighter procurement programme is once again under close scrutiny, and could face delays, or even cancellation, adding that the programme is yet again "-hanging by a thread".
Eurofighter says that it does not take the threat "too seriously", bearing in mind that Germany only recently signed the programme re-orientation contract which commits the country to complete development.
Industry has submitted price proposals on the aircraft, which must now be discussed with the customers, and expects a production investment go-ahead at the turn of the year, says the company.
Defence minister Volker Ruhe says that the burden of the savings will come from procurement programmes, to preserve the overall structure and training standards in the armed forces.
While the tactical requirements of the armed forces remain unchanged, the ministry must now decide its priorities, says the defence ministry.
Rhe says that procurement of the NH90 transport helicopter has a higher priority than that of the Tiger combat helicopter. He adds that the defence ministry cannot afford the Helios 2/Horus programme with the new budget.
"We have to discuss what to do [on Tiger] with France. It might be necessary to cut numbers or delay the programme," says the ministry. Much will depend on what France itself, now embroiled in its own budget controversy, decides (Flight International, 3-9 July).
While generally considered the most likely to go, the reconnaissance-satellite purchase could yet be saved by political support from German Chancellor Helmut Kohl and by a restructuring of funding. The defence ministry is now shouldering 50% of the costs, with the rest borne by other ministries.
Source: Flight International
