Saxony on the brink of the arms revolution: opportunities or lagging behind?

Saxony on the brink of the arms revolution: opportunities or lagging behind?

There are currently significant efforts in Saxony to benefit from the latest developments in the defense industry. According to the Saxon newspaper However, it should be noted that the country is at a disadvantage when it comes to access to the Bundeswehr's special funds. Of the total 100 billion euros that the federal government is making available for armament, orders worth 20 billion euros flowed last year. Saxony was only able to conclude contracts with a total volume of 73 million euros, which corresponds to only 0.3 percent of the federal government's defense spending.

Compared to other federal states, Saxony is poorly represented in the armaments industry. What is particularly striking is that over 90 percent of the arms clusters are located in West Germany. However, Saxony's Chambers of Commerce and Industry see opportunities for new jobs and added value in the defense industry. IHK President Andreas Sperl emphasizes Saxony's potential as an industrial location and driver of innovation, especially with regard to new military technologies.

Planned military projects in Saxony

Public attention is focused on several planned military projects in the region. These include, among other things:

• Künstliche Modellstadt „Schnöggersburg“ in Sachsen-Anhalt, die für Häuserkampf-Übungen genutz werden wird und die größte ihrer Art in Europa darstellt.
• Die Offiziersschule des Heeres und das Militärhistorische Museum in Dresden.
• Ein neuer Standort für das „Logistikbataillon 471“ in Bernsdorf, an dem etwa 700 Bundeswehrangehörige und 100 Zivilangestellte arbeiten werden.
• Die Übernahme des Waggonbaus in Görlitz durch den Rüstungskonzern KNDS, der ab 2026 Teile für Kampfpanzer Leopard 2 und Schützenpanzer Puma produzieren wird.
• Das Startup „Germanium Skies“ in Dresden, welches eine neuartige Drohne mit zehn Armen entwickelt.

Challenges and future prospects

Despite the projects called for, access to further contracts is often restricted by military secrecy requirements. Much important information about orders and armaments projects remains in the dark. This makes it difficult for Saxony to appropriately use the advantages of the Bundeswehr's special funds. However, political actors and the IHK are striving for an open debate about the development of the defense industry in Saxony in order to better exploit the economic potential.

Although Saxony appears to be disadvantaged by the Bundeswehr's special funds, local representatives claim that the country is not “demilitarized”. The Bundeswehr is striving for technical superiority, with the speed of awarding contracts taking precedence over regional balance. This could lead to further imbalance between the regions if Saxony does not actively compete for a larger share of the resources.

In the current economic situation in Saxony, these developments could represent both challenges and opportunities. Greater integration into the defense industry could strengthen the innovation location in the long term and open up new avenues for economic growth.