ÄMARI AIR BASE, Estonia — As Germany’s inflation rate hit double digits last month among escalating energy and food prices, concerns have risen over the country’s ability to pay for its planned multibillion-euro military spending run.
The air force’s most critical fighter procurement program, however, is expected to weather inflation-related cost increases intact, according to the service’s chief of staff.
Berlin’s next major defense procurement contract, “the most important one for us, is the contract for the F-35,” Lt. Gen Ingo Gerhartz told a small group of reporters Oct. 24 en route from Ämari Air Base, Estonia, to Berlin aboard a Luftwaffe A400M aircraft.
Germany’s inflation rates hit a record 10 percent in September, up from just under 8 percent in August, due to soaring energy costs and food prices that have continued to hit Europe since Russia invaded Ukraine in February. Berlin’s energy costs were nearly 40 percent higher in September than they were at the same time one year ago, Deutsche Welle reported, citing government-provided statistics.
The ever-climbing inflation numbers have prompted speculation about Germany’s purchasing power for a planned €100 billion (U.S. $98.6 billion) investment in military capabilities, announced by Chancellor Olaf Scholz this past February.
The U.S. State Department approved in July a potential sale of up to 35 F-35A aircraft to Germany, including munitions and equipment, for a total estimated cost of up to $8.4 billion.
Gerhartz asserted that the joint strike fighter aircraft’s cost should not be impacted by rising inflation rates, but noted that the contract finalizations are taking place with Germany’s procurement agency and not directly with his military branch. “As far as I know… the F-35 contract is not affected by that,” he said. “So we will buy 35 aircraft, as we planned, with all of the equipment.”
But the service is prepared to see the impact of inflation on other procurement efforts, although it is “too early” to identify which programs may be most at risk, he noted.
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ÄMARI AIR BASE, Estonia — As Germany’s inflation rate hit double digits last month among escalating energy and food prices, concerns have risen over the country’s ability to pay for its planned multibillion-euro military spending run.
The air force’s most critical fighter procurement program, however, is expected to weather inflation-related cost increases intact, according to the service’s chief of staff.
Berlin’s next major defense procurement contract, “the most important one for us, is the contract for the F-35,” Lt. Gen Ingo Gerhartz told a small group of reporters Oct. 24 en route from Ämari Air Base, Estonia, to Berlin aboard a Luftwaffe A400M aircraft.
Germany’s inflation rates hit a record 10 percent in September, up from just under 8 percent in August, due to soaring energy costs and food prices that have continued to hit Europe since Russia invaded Ukraine in February. Berlin’s energy costs were nearly 40 percent higher in September than they were at the same time one year ago, Deutsche Welle reported, citing government-provided statistics.
The ever-climbing inflation numbers have prompted speculation about Germany’s purchasing power for a planned €100 billion (U.S. $98.6 billion) investment in military capabilities, announced by Chancellor Olaf Scholz this past February.
The U.S. State Department approved in July a potential sale of up to 35 F-35A aircraft to Germany, including munitions and equipment, for a total estimated cost of up to $8.4 billion.
Gerhartz asserted that the joint strike fighter aircraft’s cost should not be impacted by rising inflation rates, but noted that the contract finalizations are taking place with Germany’s procurement agency and not directly with his military branch. “As far as I know… the F-35 contract is not affected by that,” he said. “So we will buy 35 aircraft, as we planned, with all of the equipment.”
But the service is prepared to see the impact of inflation on other procurement efforts, although it is “too early” to identify which programs may be most at risk, he noted.