Germany’s €11 Billion Defense Orders to Get Lawmaker Approval
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2023-06-23 18:51
German lawmakers will sign off early next month on government plans to buy 60 Boeing Co. Chinook helicopters

German lawmakers will sign off early next month on government plans to buy 60 Boeing Co. Chinook helicopters and three maritime surveillance vessels for a combined value of more than €11 billion ($11.9 billion), according to people familiar with the planning.

Chancellor Olaf Scholz’s ruling alliance has asked for approval to spend €6.9 billion on the 60 CH-47F helicopters, together with an additional €750 million for infrastructure and maintenance, said the people, who asked not to be identified discussing confidential information.

Due to cost over-runs, it has also requested permission to increase the funds allocated for the three ships — manufactured by Bremen-based NVL B.V. & Co. KG — to about €3.45 billion, from an original amount of €2.1 billion, the people added. Lawmakers on the lower house of parliament’s budget committee will approve the spending plans at a session on July 5 in Berlin, they said.

The big-ticket procurements are part of the ruling coalition’s effort to expand and modernize the armed forces triggered by Russia’s invasion of Ukraine.

They will be financed from a special €100 billion fund established last year to boost military spending, on top of the regular annual defense budget of about €50 billion.

A Boeing spokesman said the company is looking forward to working with the US and German governments to finalize the helicopter sale.

A spokesman for NVL declined to comment on the cost of the ships and referred to a press release the company published in June 2021 when it first received the order.

--With assistance from Alexander Pearson.

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