The German Budget Committee approved the purchase of loitering munitions, so-called kamikaze drones, for the country's armed forces on Wednesday. While Defense Minister Boris Pistorius requested framework funding of 4.1 billion euros, lawmakers drastically slashed the budget to just over 2 billion euros. This decision comes with strict oversight requirements and controversies surrounding the start-up Stark Defence, backed by American billionaire Peter Thiel.

Budget Cut in Half

Instead of the planned 4.1 billion euros, parliament approved a limit of around 2 billion euros for drones, forcing the defense ministry to be more frugal.

Controversy Over Investor

Peter Thiel's involvement in the company Stark Defence became the reason for imposing strict restrictions regarding system certification and security.

Priority for the Eastern Flank

The first HX-2 kamikaze drones are to be equipped by the brigade stationed in Lithuania, strengthening the defense of the Baltic region.

The Bundestag's Budget Committee has given the green light to a key armament project set to revolutionize the strike capabilities of the Bundeswehr. Lawmakers approved a first tranche of 540 million euros for the purchase of HX-2 type drones, produced by Rheinmetall and Stark Defence. However, this is only a partial success for the defense ministry, as MPs rejected the original 4.1 billion euro plan, deciding to cut long-term commitments by almost half. This limitation stems from concerns over excessive costs and uncertainty regarding the technological maturity of the offered systems. The capital ties of one supplier caused the greatest stir. The start-up Stark Defence is financed by Peter Thiel, raising concerns among some politicians of the governing coalition about Germany's technological autonomy. As a result, the committee imposed "strenge Auflagen" (strict conditions) on the Defense Ministry. The ministry must now regularly report progress on operational testing and drone certification. Each subsequent batch of orders will require separate parliamentary approval, significantly narrowing the freedom of action that Boris Pistorius had planned. Since the end of the Cold War, the Bundeswehr has struggled with underfunding, and the discussion about armed drones was a taboo subject in Germany for over a decade due to ethical concerns. The delivery of the new systems is a top priority for the Lithuanian brigade – the first permanent German unit stationed on the eastern flank of NATO. This investment reflects lessons from the war in Ukraine, where cheap attack drones have become a mass tool for destroying enemy heavy equipment. Simultaneously, diplomatic tensions between Kyiv and Washington are emerging in the background. The United States has issued a warning to Ukraine, demanding a halt to drone attacks on Russian oil terminals to prevent destabilization of global commodity prices and protect American economic interests.

Mentioned People

  • Boris Pistorius — Germany's Defense Minister lobbying for the drone purchase.
  • Peter Thiel — American billionaire and investor supporting the drone manufacturer.