Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Germany forges pact for Leopard 2 successor in snub to Paris - Handelsblatt

Published 06/09/2023, 13:21
Updated 06/09/2023, 13:25
© Reuters. FILE PHOTO: A view of a Leopard 2 tank at the German army Bundeswehr base in Munster, Germany, February 20, 2023. REUTERS/Fabian Bimmer/File Photo
RHMG
-

BERLIN (Reuters) - Germany has signed agreements with Italy, Spain and Sweden on the development of a successor to the Leopard 2 tank, German business daily Handelsblatt reported on Wednesday.

If confirmed, the deal would be certain to upset France, which, in 2017, agreed with Berlin to develop a joint Franco-German tank to succeed the German Leopard 2 and the French Leclerc in a project beset by delays and disagreements.

The initiative is to take place under the leadership of Krauss-Maffei Wegmann (KMW) and Rheinmetall, the German arms makers building the Leopard 2, Handelsblatt reported, citing unnamed industry and political sources.

The German defence ministry did not immediately respond to a request for comment. A spokesperson for Rheinmetall declined to comment on the report. A spokesperson for KMW could not immediately comment.

The newspaper said the partners in the deal were planning to apply to the European Defence Fund for funding amounting to a three-digit million euro sum, adding the project would also involve Sweden's Saab and Italy's Leonardo. It did not identify which Spanish company would be involved.

The delays to the proposed Franco-German project have strained ties already tested by differences over energy topics and the question to what extent Europe should become independent from the U.S. in its security policy.

Still, the defence ministers of France and Germany said in July they sought to give fresh impetus to the venture and had tasked their army chiefs to hammer out the rough outlines of the new tank's capabilities, to have a basic document ready by the end of the year.

Handelsblatt, however, reported the countries had not been able to agree on the specifications of the tank, with France aiming for a rather light vehicle whereas Germany opted for a more heavily armoured tank.

The French military has been traditionally strongly involved in Africa where having a lighter vehicle that can be more easily transported by air makes sense. Germany, in contrast, sees the major threat as coming from Russia.

The defence ministry in Paris and the office of President Emmanuel Macron did not immediately respond to requests for comment.

© Reuters. FILE PHOTO: A view of a Leopard 2 tank at the German army Bundeswehr base in Munster, Germany, February 20, 2023. REUTERS/Fabian Bimmer/File Photo

Handelsblatt said the new tank deal was a setback for the Franco-German cooperation in defence procurement, even though it was possible that both projects might be continued.

It cited French government sources as saying the topic would be raised at Franco-German government consultations scheduled for the start of October.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.