In the case of Israeli defence company Rafael, however, he said the war in Gaza raises additional concerns.

“Given the massive human rights violations and serious allegations regarding breaches of international law in connection with the war in Gaza, there must be particularly rigorous scrutiny,” he said.

“The guiding principle for public investment must be that human rights and international law are non-negotiable.”

‘City of Peace’ pushes back

The debate has particular resonance in Osnabruck, a city that has long promoted itself as a “City of Peace” because of its role in the negotiations that led to the Peace of Westphalia in 1648, ending the Thirty Years’ War.

The prospect of military production at the Volkswagen plant has sparked repeated protests in recent months, bringing peace activists, anti-war groups and local initiatives onto the streets.

The Osnabruck Peace Initiative argues that Lower Saxony should use any public money earmarked for the plant to support a socially responsible and environmentally sustainable transition rather than subsidise weapons production.

“Production for an Israeli arms company amounts to de facto support for the wars the state of Israel is waging against the Palestinians, Lebanon and Iran,” Marie Dominique Guyard, spokesperson for the initiative, told Anadolu.

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“Defence equipment for the Iron Dome plays a role in Israel’s aggressive, offensive military activities, as it provides the protective shield enabling Israel to act aggressively toward its neighbours.”

Speaking on behalf of the Osnabruck Peace Initiative, Guyard said the group’s position is also informed by international legal proceedings concerning Israel’s conduct.

She pointed to a 2024 International Court of Justice advisory opinion that found Israel’s continued presence in the Occupied Palestinian Territory unlawful and said states must not provide aid or assistance in maintaining the situation created by that presence.

She cited International Criminal Court arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant on war crimes and findings by a UN commission of inquiry and Amnesty International accusing Israel of genocide in Gaza.

But she also pointed to Osnabruck’s own history to explain the depth of local opposition.

The city was repeatedly bombed during World War II, when it was home to arms-related industry. About 65 percent of Osnabruck was destroyed, including 95 percent of its historic old town.

For Guyard, the prospect of military production returning to the city some eight decades later makes the debate about more than the future of one Volkswagen factory.

“When arms factories are once again established in the city some 80 years after the last war, one can only despair at the decision-makers’ disregard for history,” she said.

“We do not wish to support such a disastrous development and will continue to build opposition to ensure that work in the city serves peace rather than war.”