The German Bundestag is set to pass the Bundeswehr Procurement Acceleration Act on Thursday, aiming to speed up contracts for arms and construction. Led by Economics Minister Katherina Reiche (CDU), the law responds to Europe's changed security landscape and seeks economic growth. It removes barriers like contract splitting but faces criticism over potential corruption and disadvantages for small businesses.
The Bundeswehr Procurement Acceleration Act, a 16-page document with a lengthy name, aims to significantly speed up the acquisition of tanks, ammunition, and the construction of new barracks. Developed under the leadership of the Economics Ministry headed by Katherina Reiche (CDU), it addresses Europe's tense security situation. Chancellor Friedrich Merz (CDU) promised faster economic growth at the start of his term, and the law is intended to demonstrate this.
Reiche stated the goal clearly: "We must become technologically and industrially stronger than potential aggressors. This secures peace." A key measure is eliminating the requirement to split contracts under the Losgrundsatz principle, which protects small and medium-sized enterprises but often causes delays—as seen in highway construction sites left idle for months behind barriers.
The Federal Audit Office recently criticized the Bundeswehr's financial management, particularly regarding the 100 billion euro special fund. "Experience shows: When an organization suddenly has significantly more financial resources at its disposal, the risk of uneconomic action increases," the report stated. Issues range from failed procurements to millions in unused software licenses.
Opposition voices, such as Left Party deputy faction leader Janine Wissler, see risks: "A big gift to the arms industry," opening "the door wide to corruption." She criticizes raising thresholds for direct awards from 1,000 euros to 100,000 euros and from 3,000 euros to 500,000 euros for construction services. "Together with the Procurement Acceleration Act... the previous red-pen policy on public spending is now replaced by a blank-check mentality," Wissler told the RedaktionsNetzwerk Deutschland (RND).
Supporters emphasize security interests: In the arms sector, secrecy must be possible, and contracts could be awarded directly. Negotiations in the Union-SPD coalition were contentious, with concerns over procurement. Whether the law disadvantages small firms or boosts the economy remains to be seen.
