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EU defense spending could rise to 1 trillion euros by 2030 — head of Rheinmetall

Rheinmetall is poised to significantly increase its investments in production expansion

BERLIN, April 17. /TASS/. The European Union may increase its defense spending to 1 trillion euros by 2030, according to Armin Papperger, the CEO of Rheinmetall, Germany's leading defense company.

In March, European Commission President Ursula von der Leyen proposed an 800-billion-euro rearmament plan for the EU. In an interview with the Handelsblatt newspaper, Papperger stated that the group had conducted its own analysis of future military expenditures within the bloc. "[The defense] budget in Europe could even grow to a trillion euros by 2030," he remarked, though he did not clarify whether he was referring to the regular military budget or the special program announced by von der Leyen. The regular defense budget of EU countries is projected to be 326 billion euros in 2024.

Regardless, Rheinmetall is poised to significantly increase its investments in production expansion. As a result, the group's potential order intake could reach up to 300 billion euros, while the total current order book for 2024 stands at 55 billion euros, a record for the company.

Papperger highlighted that production ramp-up is already in progress. Specifically, Rheinmetall has increased its production of artillery shells to 750,000 per year, with plans to double that figure. The company is opening production facilities not only in Germany but also in countries such as Spain and Lithuania. Denmark, Latvia, Estonia, Bulgaria, Romania, and Poland have expressed interest in hosting these production facilities. "Everyone wants factories, and we can build them," Papperger said.

When discussing specific types of weaponry, Papperger mentioned the Skyranger 30 mobile short-range air defense systems. Rheinmetall aims to produce over a thousand of these vehicles in the next decade, with 200 to 300 potentially allocated to the Bundeswehr (German Armed Forces). He added that an active process is currently underway to finalize future contracts covering various types of weaponry. "I promise that in five years, Europe will have significantly different defense capabilities than it has today," he asserted.

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