Security made in Germany Federal Association of the German Security and Defence Industry (BDSV)
Defence Turkey:
Why has the BDSV only recently become an independent association of the security and defence industry? Is this because the impending downsizing of Germany’s Bundeswehr as well as its national defence budget mean there are difficult times ahead?
Prinz zu Waldeck:
Up to now, associations of businesses in the defence technology sector in Germany have been highly fragmented. Companies were generally members of several associations, most of which were not exclusively focused on the industry but rather “civilly” inclined.
It is true that, during Germany’s reconstruction phase, businesses were initially preoccupied with largely non-defence technology issues and it was only much later that the arms industry became a focal point. Moreover, we must bear in mind that when the Bundeswehr was set up, priority was given to new, mainly nationally-produced equipment together with a very stable economy. Being active in associations was not a priority objective.
So in 2009, the businesses that were active in the industry decided to found their own association. This allowed them to have a centrally organised, immediate and direct say – which, due to the way things were previously organised, had been a cumbersome undertaking.
Unfortunately, the importance of our industry for Germany’s innovative ability as well as its contribution to Germany's sovereignty are still not as widely recognised as they deserve to be. Therefore, it was essential to respond with a strong advocacy group and provide a competent point of contact. This strong advocacy group is also imperative for the German industry to find its place in a Europe which is closing ranks.
Of course any downsizing of the Bundeswehr will have considerable effects. We can expect that less money will be spent on the procurement of defence material. This is all happening at a time of serious asymmetric threats, when Germany has assumed great responsibilities in terms of foreign and security policy and the Bundeswehr is deployed all around the world. Of course, part of the national defence budget also has to be used to help consolidate Germany's state budgets. However funds must be allocated in accordance with security policy requirements, and not along the lines of “security as the budget allows”. By not ensuring this we would be acting against Germany’s interests.
These new framework conditions required a process of re-orientation. That is why the BDSV was founded in 2009.
Defence Turkey:
Given that Germany will spend less on defence, does that mean that the defence technology sector will automatically shrink? Or is Germany hoping to counterbalance this situation by strengthening exports?
Prinz zu Waldeck:
The present national need is by far and away not sufficient to retain the level of technology in the businesses. Even today, German arms manufacturers depend on exports for about 70 percent, some of them over 80 percent, of their turnover. As an exporter, the German security and defence industry competes with suppliers from Europe, the USA, Russia and other countries which receive large-scale political and economic support from their respective governments, to an extent thus far unknown in Germany. It is therefore key for the German government to provide political assistance to the industry’s arms exports. In the meantime the Federal Government has become aware of this.
Defence Turkey:
What is the German defence technology industry’s position in Germany and elsewhere?
Prinz zu Waldeck:
Germany’s global responsibility in terms of security policy has changed, and thus grown considerably. This inextricably includes its industrial expertise in the security and defence fields at national level.
The German security and defence industry is a driving force for innovation, particularly in technology, and a global leader in many technology fields.
However, the German security and defence industry’s market environment is no longer limited to merely defence technology dimensions. Today, a broader and holistic understanding of security calls for entrepreneurial activities to be adapted too.
This includes, among other things, dual-use technologies as well as interaction with various security agencies, each of which requires different technological skills. The client base is therefore increasingly more complex, and technological solutions must meet these requirements. In addition to protecting against threats and creating safe conditions, security technology products and services offer great opportunities to develop a specific German expertise profile and position Germany as a leading market for security technology. From this perspective, this market is very much a future market for our industry.
Defence Turkey:
What is the BDSV currently working on?
Prinz zu Waldeck:
As far as content is concerned, we are dealing with strategic issues that concern our country. These include maintaining Germany’s competitive edge as a high-tech location, opportunities for exports, equal framework conditions on a European as well as international scale, sufficient use of funds in research and technology and, last but not least, representing the interests of small and medium-sized enterprises. So all in all, securing highly qualified jobs has top priority on the BDSV agenda. Unlike other organisations, we are willing to tackle these overarching issues.
We are currently working on translating the Procurement Directive of the Defence Package, an EU directive on EU-wide, transparent and competitive contract procurement in the defence sector, into national law. At an international level, we have to create a level playing field and ultimately try and move away from offset agreements.
We have been both closely following and involved in the work of the Re-structuring Commission of the Bundeswehr (Bundeswehrstrukturkommission) and have contributed, primarily in the fields of arms and procurement. Our suggestions were adopted in the Re-structuring Commission’s proposals. In the future we plan to continue using our skills in the re-structuring process of arms and procurement and will keep offering our expertise to meet the challenges at hand.
Defence Turkey:
Are Germany and Turkey co-operating on any future arms projects?
Prinz zu Waldeck:
Yes. Since 2009 the Turkish and German defence ministries have been officially co-operating in the arms sector. In spring 2010, the BDSV and the TAFF concluded an agreement, declaring their willingness to take this co-operation between ministries to the industry level. This aims at improving the international position of both the German and the Turkish arms market for mutual benefit. To that end, we have agreed to have two meetings a year. In the very first meeting, BDSV and TAFF business representatives agreed on joint projects, the details of which will be discussed in further meetings. New projects may follow in the future upon mutual request of both parties. So we have prepared the ground for not only strengthening the long-standing and fruitful relations between our countries, also in the area of the defence industry, but have placed them on a new and stable foundation.
