Germany set to create $120 million defense investment fund

Written by By Eeva Järvilehto, CNN Berlin, Germany

Germany’s federal government is on the verge of signing a pact to create a Defense Investment Fund, a major boost to the country’s defense industry.

The 100 million euro ($120 million) fund will be a joint investment vehicle that will allow the German government to offer state-backed investment assistance to companies involved in key defense sector infrastructure such as factories, satellites, maintenance facilities and fuel storage infrastructure.

The three-year project was mooted by German Chancellor Angela Merkel back in 2016 and has since received the backing of the European Union.

The Germany government is expected to act on the deal Monday.

An investment document posted online by the German government shows the partnership will attempt to create joint projects with the support of “the federal state of Schleswig-Holstein and the German federal state of Saarland.”

More details are expected to be revealed at an event in Berlin on Sunday afternoon.

Germany is also expected to announce on Monday a tougher stance on tensions with Russia and China.

Foreign Minister Heiko Maas is expected to unveil plans to suspend arms exports to both countries, following the publication of German diplomatic cables in December that implicated Russia in the murder of former Russian double agent Sergei Skripal in England.

At the time, Maas said the WikiLeaks revelations were “the last straw” for Germany’s U.S. allies, meaning that Germany must take a tougher stance towards Russia.

After meeting US Secretary of State Mike Pompeo in Berlin Friday, the two sides agreed to continue to discuss ways to intensify political engagement and cooperation in Russia, according to a joint press release.

Later this week, Merkel will meet Chinese President Xi Jinping, though the exact agenda is yet to be confirmed.

Leave a Comment