buglerbilly
16-03-10, 03:46 AM
German Defence Minister Vows to Improve Future Acquisition Policy
The German Defence Minister at his inaugural visits to the Navy.
Military and Political Necessities: Does protection end where protectionism begins?
08:44 GMT, March 15, 2010 defpro.com | Last week, German Defence Minister Dr. Karl-Theodor Freiherr zu Guttenberg made an inaugural visit to the German Navy. The visit aboard the “Mecklenburg-Vorpommern” frigate in itself was rather unremarkable, as inaugural visits tend to be. However, in light of the Navy’s future requirements and general budget issues, zu Guttenberg made a strong statement against lobbyism in defence procurement, so far more or less unheeded by the media.
Indeed there have been enough issues during the past days and weeks with more potential to attract the general attention: the agreement on the funding for the A400M transport aircraft, the pull-out of the Northrop Grumman/EADS team from the US tanker competition, and the ongoing investigation of the Kunduz air strike which has troubled zu Guttenberg since the very first days of his office as German Defence Minister.
In the midst of the fog of war, stirred on these major industry-political and security-political battlefields, zu Guttenberg vowed to improve the future German acquisition policy. While watching the display of naval capabilities, staged by the Navy on this special occasion, he stated: “The questions that have to be asked are: ‘What is being required?’, ‘Which are the alternatives?’, ‘Which of the alternatives is economically priced while still providing the required performance?’ These are aspects that have to be at the centre of attention rather than the sound volume of a lobbyist.”
While any hopes placed into the thought that this will revolutionise the future German acquisition policy is nothing more than wishful thinking, one has to keep in mind the complexity of defence procurement. The multi-million and multi-billion defence programmes are generally amalgamated with a range of very national issues, including jobs, financial interdependencies and the future of domestic industrial capabilities.
Weighing Military Requirements and Political Necessities
The debate on what is often strikingly described as “lobbyism” has a number of references to actuality. But in the case of the Navy the most prominent example currently is the construction of the third Type 702 Berlin-class replenishment ship, categorised as Einsatzgruppenversorger (EGV) in Germany. While the first two ships are deployed with the German Navy since 2001/02, the procurement of a third ship has been inked in late 2008 for a price of approximately €350 million. This is about three times as much as the price of the first two ships of this class and, reportedly, far more expensive than it would have been to purchase comparable ships abroad.
Moreover, experts question if this ship will provide the Navy with the capabilities which are urgently required to support current and future operations. Chief of Staff of the German Navy, Vice Admiral Wolfgang Nolting, said during the Minister’s visit: “First and foremost, we need a platform which can transport soldiers of the Army or the Air Force from Germany to the area of operation.” Although this requirement is not new and has been repeatedly voiced (Germany has a general lack of own transportation means, including both air-lift and sea-lift capabilities), the decision to order a third ship also has to be considered in light of the ailing shipbuilding industry in Germany. Military and civil orders from national and international customers are increasingly diminishing and more and more shipbuilders have to declare bankruptcy, putting on the line thousands of jobs and the economic future of entire regions in northern Germany.
Lobbyism does not only flourish due to an allegedly increasing greed of companies and shareholders. Diminishing budgets, growing international competition and domestic structural problems created an uncomfortable environment for companies throughout the entire defence market, compared to the prosperous days during the first four to five decades after World War II. Today, lobbyism can be considered as just another standard marketing tool. But it is up to the political and military decision-makers to adequately differentiate in their judgement of military requirements and political as well as financial necessities.
The Two Sides of Political Reasoning
European politicians recently criticised the industry-political environment in the competition for the next US tanker aircraft. According to Financial Times, on Friday, France’s Nicolas Sarkozy and UK’s Gordon Brown joined forces to attack the US for alleged protectionism in the tanker tender. As defpro.com reported last week (see http://www.defpro.com/daily/details/525/), German politicians voiced the same accusations.
But the same politicians tend to forget their own decisions in European defence programmes. Questions have been raised about the economical sense and the military capabilities provided by platforms such as the A400M or the NH90 helicopter. However, many problems that have led to the significant delay in the A400M programme are not due to technical difficulties but, rather, are due to political decisions that created unnecessary challenges for the industry.
The result is a heated discussion among politicians, industry and defence experts questioning the military capability of the ordered equipment and accusing companies of shortcomings and delays. Considering the requirements of armed forces deployed to high-intensity operations such as Iraq and Afghanistan, one can understand why many voices are asking if military capabilities and protection end where political protectionism begins. However, it must not be forgotten that it is the political side that issues the military, technical and financial requirements for any defence programme and awards the contracts. In a free market it is not the supplier that should be blamed for what the customer buys.
----
By Nicolas von Kospoth, Managing Editor
(The opinions expressed in this article are the author's and do not necessarily represent those of defpro.com)
The German Defence Minister at his inaugural visits to the Navy.
Military and Political Necessities: Does protection end where protectionism begins?
08:44 GMT, March 15, 2010 defpro.com | Last week, German Defence Minister Dr. Karl-Theodor Freiherr zu Guttenberg made an inaugural visit to the German Navy. The visit aboard the “Mecklenburg-Vorpommern” frigate in itself was rather unremarkable, as inaugural visits tend to be. However, in light of the Navy’s future requirements and general budget issues, zu Guttenberg made a strong statement against lobbyism in defence procurement, so far more or less unheeded by the media.
Indeed there have been enough issues during the past days and weeks with more potential to attract the general attention: the agreement on the funding for the A400M transport aircraft, the pull-out of the Northrop Grumman/EADS team from the US tanker competition, and the ongoing investigation of the Kunduz air strike which has troubled zu Guttenberg since the very first days of his office as German Defence Minister.
In the midst of the fog of war, stirred on these major industry-political and security-political battlefields, zu Guttenberg vowed to improve the future German acquisition policy. While watching the display of naval capabilities, staged by the Navy on this special occasion, he stated: “The questions that have to be asked are: ‘What is being required?’, ‘Which are the alternatives?’, ‘Which of the alternatives is economically priced while still providing the required performance?’ These are aspects that have to be at the centre of attention rather than the sound volume of a lobbyist.”
While any hopes placed into the thought that this will revolutionise the future German acquisition policy is nothing more than wishful thinking, one has to keep in mind the complexity of defence procurement. The multi-million and multi-billion defence programmes are generally amalgamated with a range of very national issues, including jobs, financial interdependencies and the future of domestic industrial capabilities.
Weighing Military Requirements and Political Necessities
The debate on what is often strikingly described as “lobbyism” has a number of references to actuality. But in the case of the Navy the most prominent example currently is the construction of the third Type 702 Berlin-class replenishment ship, categorised as Einsatzgruppenversorger (EGV) in Germany. While the first two ships are deployed with the German Navy since 2001/02, the procurement of a third ship has been inked in late 2008 for a price of approximately €350 million. This is about three times as much as the price of the first two ships of this class and, reportedly, far more expensive than it would have been to purchase comparable ships abroad.
Moreover, experts question if this ship will provide the Navy with the capabilities which are urgently required to support current and future operations. Chief of Staff of the German Navy, Vice Admiral Wolfgang Nolting, said during the Minister’s visit: “First and foremost, we need a platform which can transport soldiers of the Army or the Air Force from Germany to the area of operation.” Although this requirement is not new and has been repeatedly voiced (Germany has a general lack of own transportation means, including both air-lift and sea-lift capabilities), the decision to order a third ship also has to be considered in light of the ailing shipbuilding industry in Germany. Military and civil orders from national and international customers are increasingly diminishing and more and more shipbuilders have to declare bankruptcy, putting on the line thousands of jobs and the economic future of entire regions in northern Germany.
Lobbyism does not only flourish due to an allegedly increasing greed of companies and shareholders. Diminishing budgets, growing international competition and domestic structural problems created an uncomfortable environment for companies throughout the entire defence market, compared to the prosperous days during the first four to five decades after World War II. Today, lobbyism can be considered as just another standard marketing tool. But it is up to the political and military decision-makers to adequately differentiate in their judgement of military requirements and political as well as financial necessities.
The Two Sides of Political Reasoning
European politicians recently criticised the industry-political environment in the competition for the next US tanker aircraft. According to Financial Times, on Friday, France’s Nicolas Sarkozy and UK’s Gordon Brown joined forces to attack the US for alleged protectionism in the tanker tender. As defpro.com reported last week (see http://www.defpro.com/daily/details/525/), German politicians voiced the same accusations.
But the same politicians tend to forget their own decisions in European defence programmes. Questions have been raised about the economical sense and the military capabilities provided by platforms such as the A400M or the NH90 helicopter. However, many problems that have led to the significant delay in the A400M programme are not due to technical difficulties but, rather, are due to political decisions that created unnecessary challenges for the industry.
The result is a heated discussion among politicians, industry and defence experts questioning the military capability of the ordered equipment and accusing companies of shortcomings and delays. Considering the requirements of armed forces deployed to high-intensity operations such as Iraq and Afghanistan, one can understand why many voices are asking if military capabilities and protection end where political protectionism begins. However, it must not be forgotten that it is the political side that issues the military, technical and financial requirements for any defence programme and awards the contracts. In a free market it is not the supplier that should be blamed for what the customer buys.
----
By Nicolas von Kospoth, Managing Editor
(The opinions expressed in this article are the author's and do not necessarily represent those of defpro.com)