24 January 2015

Editorial: Is Germany Still in the Race for Australia’s Biggest Arms Deal of the Century?

TKMS Type 216 Submarine Diagram

By Franz-Stefan Gady

Angela Merkel is aggressively pushing for Germany to win a contract to build 12 submarines.

Tomorrow’s issue of Der Spiegel features a story on Angela Merkel’s efforts to secure one of the largest arms deals in Germany’s history. The article discusses the, according to a German government source, “outstanding” opportunity for the German arms industry should the German manufacturer ThyssenKrupp Marine Systems (TKMS) be awarded the contract to build up to twelve new submarines for the Australian Royal Navy.  TKMS’s offer, the 4,000 tons HDW class 216 is a submarine, specifically designed to meet Canberra’s needs, which is looking to replace its aging Collins-class submarine fleet.
The article further notes that German Chancellor Angela Merkel has already campaigned for the estimated $16 billion weapons deal (other sources cite an indicative price of $20 billion) during the November G-8 meeting in Brisbane, Australia last year, where she met with Australian Prime Minister Tony Abbott. She acknowledged Japan to be Germany’s biggest competitor in winning the contract. Yet, Merkel pointed out that Germany is a neutral arbiter in the Asia-Pacific region, whereas were Australia to choose a Japanese manufacturer, tensions could rise with China. “You are right,” was the terse response of the Australian Prime Minister. 

Read the full story at The Diplomat