Dispute over billion-euro defense contracts in Germany

German lawmakers have opposed government plans to award defense contracts worth hundreds of millions of euros without open tenders. The Bundestag’s budget committee said it would not support the military agency’s deal with Rohde & Schwarz to develop a mobile reconnaissance system without competition.

Source Financial Times

Social Democrat Andreas Schwarz and other MPs stressed that large defense expenditures must be conducted transparently through open procedures. Opposition parties added that “direct awards” were unacceptable as they restrict competition and risk overspending.

Germany’s government aims to boost defense spending to €162bn by 2029, but parliament insists on more transparency. Lawmakers warn that attempts to accelerate procurement via direct contracts could face significant resistance.