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Economy and Defence

The economy plays a central role in ensuring Germany's defence capability. In a position from mid-2025, the DIHK explains the tasks companies would assume and how the IHK Organisation supports collaboration with security authorities in diverse security situations.

The altered geopolitical security situation imposes new requirements on companies and institutions. Close cooperation between the economy and security authorities is becoming increasingly significant. On June 25th, 2025, the DIHK Presidium adopted the following position.

The Paper in Full

As of February 2022, with the expansion of Russia's war of aggression against Ukraine, the geopolitical security situation has changed dramatically. The economy is impacted not only by disrupted supply chains, high energy prices, and hybrid threats but also through the need to ensure Germany's defence capability and adapt to an evolving political world order. From today's perspective, these challenges are immense due to the insufficient investment in civilian and military infrastructure, defence, and security since the end of the Cold War.

The political course corrections concerning defence and crisis prevention have direct implications for companies and the economy overall. Companies, for instance, play a vital role in logistics and population as well as troop supplies. On the national level, the paradigm shift was initiated with the "National Security Strategy" and the "National Security and Defence Industry Strategy." Additionally, defence spending has been secured long-term through amendments to the Constitution. The federal government has announced further concrete measures, such as the establishment of a National Security Council, accelerated procurement processes, enhancement of security-relevant infrastructure, and removal of export barriers for "Dual-Use" goods. A voluntary military service is also proposed. These measures hold great importance for the economy.

Under the lead of the Federal Ministry of the Interior and in cooperation with the Federal Ministry of Defence (BMVg), the "Framework Directive for Total Defence" was revised in 2024. It outlines the interaction between military and civilian actors, addressing measures like those of the Bundeswehr and elements of civil protection such as telecommunications, cybersecurity, transportation, energy, raw material, healthcare, food supply, and the security and integration of the economy. Total defence is comprehended as an all-encompassing economic and societal task. The current challenges concerning external security and economic protection amplify the urgency of measures long demanded by the economy, such as reducing bureaucracy, modernising infrastructure, expediting planning and approval procedures, defining clear administrative and security authority responsibilities, increasing productivity, and attracting skilled workers.

The economy recognizes its crucial role and takes responsibility for supporting Germany's defense capabilities.

DIHK-Präsident Peter Adrian

Peter Adrian

-- DIHK-Präsident

Thus, total defence pertains to many economic sectors, from medium-sized suppliers needing critical raw materials and pre-products, logistics companies delivering everyday products to retail and wholesale, banks ensuring financing and cash supply, the healthcare industry which beyond civilian care must also address injured personnel during emergencies, programmers developing cybersecurity software, energy suppliers guaranteeing water, electricity, and fuel provision, and lastly, security and defence industry with its thousands of suppliers.

Through the implementation of the Bundeswehr "Operations Plan Germany", the focus expands from economic policy to operational levels, emphasizing civil-military collaboration regionally. Besides companies, the IHKs fulfill a key function. As the interface between the economy and Bundeswehr, they inform and advise businesses, provide networking formats, and organise local connections to the Bundeswehr and civil protection organisations. In various constitutional situations in Germany, the IHKs can also perform sovereign functions as public corporations, such as issuing statements on employees' indispensable positions within companies. According to the Economic Stabilisation Act, the IHKs could be directly involved.

The indispensable role of the IHK Organisation and its member companies in the context of international and national security policy also involves preparations for severe security situations and tasks that companies must fulfil during emergencies. While these activities aim to prevent emergencies, they also include material and organisational readiness for such situations.

The Key Points

Download

The DIHK position is also available here for download:

Economy and Defence – Challenges in New Security Policy Setting (PDF, 826 KB) (only available in German)

Key areas:
  • Verteidigung

Contact

Mann im Haus der deutschen Wirtschaft

Dr. Rainer Kambeck

Managing Director Economic and Financial Policy, SME

Baykal, Benjamin_quad

Benjamin Baykal

Director Economic and Defence Policy