Germany plans to buy up to 1,000 Leopard 2 battle tanks and up to 2,500 GTK Boxer armored vehicles as part of a major rearmament of the army to fulfill its obligations to NATO to deter Russia.
Bloomberg writes about this, citing sources.
Germany to buy tanks and armored vehicles for NATO
— The German government is considering the possibility of purchasing up to 2,500 armored combat vehicles and up to 1,000 battle tanks, which is part of a joint initiative by European countries to create new NATO brigades to deter Russia, the publication writes.
The alliance has called on Germany to provide up to seven combat brigades over the next decade.
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The teams are expected to be staffed with new vehicles if the order receives final approval.
The idea is currently being considered by Defence Minister Boris Pistorius and the Bundeswehr's high command.
According to preliminary plans, we are talking about up to 1,000 Leopard 2 tanks, which are produced by Krauss-Maffei Wegmann (KDNS) and Rheinmetall, as well as up to 2,500 GTK Boxer armored vehicles, which are produced by ARTEC, a joint venture between the same KDNS and Rheinmetall.
A German defense ministry spokesman declined to comment on the potential increase in the number of combat vehicles.
Rheinmetall shares rose 3.7% in Frankfurt on the news, prompting analysts to revise their price forecasts for the company.
The order is worth about €25 billion.
Sources estimate the total value of the order could reach €25 billion, although the final figure could be less as supply negotiations are still ongoing.
A final decision on the contracts is expected to be made in the next few months, with a vote in the German parliament possible before the end of the year.
Following Russia’s full-scale invasion of Ukraine in February 2022, NATO countries have increased military spending and are building up deterrence forces on their eastern flank. Germany, as one of Europe’s key economies, plays an important role in this process.
