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19 Dec 24. Germany Approves Record €20bn Worth of Defense Gear. The new weapons and gear will be ordered at a time when Europe‘s biggest economy seeks to rebuild its long-neglected armed force in the face of Russia’s ongoing Ukraine invasion. Members of the police stand near their weapons on the roof of the Paul Loebe Haus as a German flag can be seen in the foreground prior to an official state ceremony as part of celebrations to mark 75 years of the German Constitution in Berlin, Germany on May 23, 2024. Germany celebrates the 75th anniversary of the Basic Law which came into effect on May 23, 1949, in the Federal Republic of Germany (West Germany). Germany’s military will get more than €20bn worth of new defense equipment, including four submarines, under a record package approved by the parliamentary budget committee Wednesday. The new weapons and gear will be ordered at a time when Europe’s biggest economy seeks to rebuild its long-neglected armed forces in the face of high NATO tensions with Russia over the Ukraine war.
Defense Minister Boris Pistorius greeted the decision to greenlight the 38 major projects, “by far the highest number ever,” and said among the other “biggest chunks” was a new frigate. The committee also approved the purchase of Patriot missile defenses and rocket artillery as well as funding for the cyber sector.
Pistorius said some of the approvals were for “long-term projects” such as the submarines, to be built by Germany’s Thyssenkrupp Group, which would take seven to eight years to deliver.
His ministry said that “the Russian war of aggression against Ukraine… and the increasing number of hybrid attacks on Europe” make clear the need for Germany and NATO to show “effective deterrence.”
Days after Russia’s full-scale invasion of Ukraine in early 2022, Chancellor Olaf Scholz said it marked an “epochal shift” and announced €100 billion in extra funding to improve Germany’s ramshackle armed forces.
Germany had allowed defense spending to drop off steeply since the end of the Cold War but has now, following heavy political pressure from Washington, raised it back to the NATO goal of 2% of GDP.
Hospital wards are being prioritized for DPRK militants, while wounded Russian soldiers are left in worse conditions, according to a Russian nurse during an intercepted phone conversation.
Pistorius thanked opposition parties for their support on the spending, despite the fact that Scholz, whose coalition collapsed last month, now heads a minority government ahead of new elections on Feb. 23.
“It was clear to everyone that this is not an issue for the election campaign,” said Pistorius.
Separately on Wednesday, Germany’s economy ministry said that the country’s arms and other defense goods exports had reached a new record of €13.2bn this year.
Almost two-thirds, or €8.1bn worth, went to Ukraine, much of it financed by Berlin. Next came Singapore at €1.2bn, followed by Algeria, the United States, Turkey and India. State Secretary for Economic Affairs Bernhard Kluttig said that, while German arms exports would remain “restrictive” and subject to case-by-case review, the “military aid for Ukraine is also in our own security policy interest.” (Source: News Now/https://www.kyivpost.com/post/44125)
18 Dec 24. Germany may expand military to 230,000 troops in NATO push. Germany may increase the size of its armed forces to 230,000, up from the current target of 203,000, Defence Minister Boris Pistorius said on Wednesday, as the NATO alliance looks to boost its strength after the Russian invasion of Ukraine in 2022. Germany’s armed forces, or Bundeswehr, currently has some 180,000 personnel in uniform, around 20,000 short of the current target as it has been struggling for years to recruit people.
“We are planning to raise the number of uniformed personnel to 203,000, and probably heading rather in the direction of 230,000 due to NATO’s capability targets,” Pistorius told parliament in Berlin.
NATO is set to agree new and more demanding targets for the number of allied forces and weapons in 2025, reflecting what the alliance sees as a deterioration of the security situation since Russia’s full-scale attack on Ukraine. (Source: Reuters)
19 Dec 24. The UK needs to spend 3.6 per cent of GDP on defence if it wants to modernise its military while protecting its nuclear deterrent and meeting Nato obligations. (Source: FT.com)
18 Dec 24. Denmark will have to a rip up a five-year funding plan for defence only eight months after it was agreed. (Source: FT.com)
16 Dec 24. Tax Russia to rebuild Ukraine and increase defence spending, Estonia says. Estonia will propose that the leaders of the United Kingdom-led alliance of northern European NATO countries spend no less than 2.5% of GDP on defence in response to the threat from Russia, Prime Minister Kristen Michal said on Monday. Only 23 of the 32 NATO members are on track to hit the NATO target of a minimum 2% of their gross domestic product (GDP) on defence spending.
“Everybody in NATO and in the EU right now has the feeling in their back bone that you should increase defence expenditure, because of what is happening all over the world and with Russia,” Michal told Reuters in an interview.
“Europe as the wealthiest region of the world has to spend more on defence, security and security.”
Michal hosts the heads of the alliance, called the Joint Expeditionary Force, in Tallinn this week, and will focus discussions on Russia’s “shadow fleet” of oil tankers, which he described as an “an environmental disaster waiting to happen”.
Estonia has doubled its defence spending since the start of the nearly three-year-old war in Ukraine, up to 3.2% of GDP in 2024.
British Prime Minister Keir Starmer said in July that he would increase UK defence spending to 2.5% of GDP, but only when the country could afford it and after a review of defence strategy. Incoming U.S. President Donald Trump has said he would like to end the war in Ukraine quickly without revealing details of how he planned to do this and Michal said it was important to ensure lasting peace. He proposed using 200 to 300bn euros of Russia’s frozen assets abroad to rebuild Ukraine, and imposing additional taxes on Russian goods to raise up to 300bn euros more. That would bring lasting peace, Michal said, because Russia would be unable to continue hostilities, including so-called hybrid attacks, and Ukraine’s military resources should also be strengthened. “Ukraine is part of Europe, it should be a member of NATO,” Michal added. (Source: Reuters)
16 Dec 24. UK’s ECJU Publishes Strategic Export Control Licensing Statistics for 1 April to 30 June 2024.
The U.K. government’s Export Control Joint Unit (ECJU) has published strategic export control licensing statistics for the second quarter of 2024:
- In 2024 Q2 (between 1 April and 30 June 2024), there were a total of 2,823 licensing decisions for standard individual export licences (SIELs), down 379 (12%) from 3,202 in the previous quarter (2024 Q1).
- Of these standard licensing decisions in 2024 Q2, 2,713 (96.1%) were issued, 110 (3.9%) were refused, and none were revoked.
- In 2024 Q2, 64% of SIELs were processed to first outcome within 20 working days, up from 58% in the previous quarter. 89% of SIELs were processed to first outcome within 60 working days, up from 84% in the previous quarter. Note: These SIEL licence type figures do not include data on licence applications closed in LITE during these periods. Comparing figures with previous reporting periods should be done with care.
In the 2023 calendar year, there were a total of 12,032 licensing decisions for standard individual export licences (SIELs), down 1,684 (12.3%) from 13,716 in the previous calendar year (2022). Of these standard licensing decisions in 2023, 11,343 (94.3%) were issued, 687 (5.7%) were refused, and 2 were revoked. In the 2023 calendar year, 52% of SIELs were processed to first outcome within 20 working days, down from 62% in the previous year. 87% of SIELs were processed to first outcome within 60 working days, down from 89% in the previous year. Note: These SIEL licence type figures do not include data on licence applications closed in LITE during these periods. Comparing figures with previous reporting periods should be done with care. (Source: glstrade.com)
16 Dec 24. Germany: Confidence question will almost certainly lead to snap elections on 23 February. Later on 16 December, Chancellor Olaf Scholz will ask a confidence question in the German parliament (Bundestag). Scholz’s coalition involving his own Social Democratic Party (SPD), the Greens party and the liberal Free Democratic Party (FDP) lost its majority in November when the FDP left the coalition. Scholz is required to ask the confidence question to enable a new election. Several MPs from the hard-right Alternative for Germany (AfD) party have stated that they will vote in favour of Scholz to protest against other parties refusing to co-operate with the AfD. However, this attempt will almost certainly fail to block new elections. As a result, snap parliamentary elections on 23 February are almost certain. We continue to assess that the Christian Democratic Union (CDU) party will highly likely win the election. It will likely form a majority coalition with either the SPD (a so-called grand coalition) or the Green party. Neither outcome will pose significant policy risks. (Source: Sibylline)
16 Dec 24. France: Newly-appointed prime minister is unlikely to alleviate policy, socio-economic health risks. On 13 December, President Emmanuel Macron appointed his ally François Bayrou as prime minister. Bayrou, who leads the centrist Democratic Movement (MoDem) party, was selected after the minority government (led by former prime minister Michel Barnier) collapsed earlier in December. Bayrou will consult with opposition factions before announcing cabinet positions. A key factor in determining the stability of Bayrou’s government will be whether he can gain the backing of the Socialist Party (which has adopted a more conciliatory tone than the hard-left France Unbowed party). Similarly, Bayrou will highly likely need to make concessions to the hard-right National Rally party to pass the 2025 budget. We continue to assess that passing the 2025 budget will remain highly challenging; socio-economic health risks will remain elevated. In the meantime, we assess that the government will highly likely use a constitutional mechanism to ensure the continuity of essential spending. (Source: Sibylline)
16 Dec 24. The Small Nation Powering NATO: North Macedonia’s Ammunition Industry. With a population of just 1.8m, North Macedonia stands as an unlikely but essential player in supporting NATO and Ukraine’s defence efforts. Producing 800 rounds of ammunition every minute, this small country is making a significant impact as the world nears the third anniversary of the war in Ukraine. Following an ancient Roman road out of Skopje, through the rugged mountains and villages of North Macedonia, lies ATS Ammunition—a factory that seamlessly blends history, craftsmanship, and cutting-edge technology. Amidst scenic landscapes dotted with beehives and mushroom farms, this facility is Europe’s only ammunition factory capable of producing everything in-house: casings, primers, projectiles, and even the machines and technology that manufacture them. Though the powder is sourced from the U.S. and Europe, every other component is designed, engineered, and produced on-site by North Macedonians. The factory’s workforce includes toolmakers, mechanical engineers, quality assurance specialists, and ballistics experts all united in a mission to meet NATO standards.
The site’s origins date back to 1820 when it served as an iron foundry forging swords and knives. Over the years, it evolved, eventually becoming Suvenir Samokov, a Yugoslavian ammunition factory producing 9mm and 7.62mm rounds.
By 2018, the factory faced closure, with hundreds of jobs at risk. But in 2019, ATS Group—a North Macedonian company with roots in textile manufacturing and ballistics —acquired the facility, envisioning a future in ammunition production. This vision aligned perfectly with North Macedonia’s accession to NATO in March 2020, enabling the factory to supply NATO-standard ammunition in 9mm, 5.56mm, 7.62mm, and 12.7mm calibres.
Today, ATS Ammunition spans over 300,000 square feet, boasting state-of-the-art equipment alongside relics of its past. Since 2019, ATS Group has invested over €60 m to redesign and digitise its production lines, creating a one-stop shop for ammunition manufacturing. This includes bespoke, in-house machinery designed by ATS Technology’s team of engineers.
Currently, the factory produces approximately 220m rounds annually, with the potential to double its output to 1,600 rounds per minute as demand increases. By 2025, six new lines will bolster production capacity, while the workforce—already 300 strong—is set to grow to 450. Notably, 80% of the staff are women.
The factory’s success is powered by individuals like Sara, a 26-year-old production coordinator whose family legacy at ATS spans generations (Her father, a mechanical engineer, has worked in the tooling facility for five years and her mother has worked in quality control and packaging for 9 years). With a master’s degree in mechanical engineering, Sara joined ATS in 2020 and quickly advanced through its graduate training program.
“Working in ammunition manufacturing is challenging and exciting. It’s a unique field where I can apply my skills, innovate, and contribute to something meaningful. I’m proud to stay in North Macedonia and build my career here,” she says.
Jovanka, a 41-year-old quality control manager, hopes her son will also follow her into a role at the company. With a workforce of 80% females, Jovanka is seen as a strong matriarchal figure within the organisation, nurturing new trainees and employees. Originally from Makedonski Brod, Jovanka travels 50 mins each way on a bus run on by ATS Ammo that transports workers into the facility for their shift rotations. A typical shift is 8hrs with staff rotating around 3 shifts. She echoes Sara’s pride. As a metallurgy expert with 12 years of experience at ATS, she oversees rigorous quality checks that ensure compliance with ISO, NATO and CIP standards. “Attention to detail is critical. We never sacrifice quality for speed, and I believe this is why women excel in quality assurance roles,” she explains.
ATS Ammunition’s commitment to its workforce extends beyond competitive wages. Employees receive health insurance, pension contributions, and travel allowances, with bus services running three times a day to transport workers from 54 villages. For those coming from farther afield, on-site accommodation is available.
The company also invests in the next generation through partnerships with Skopje-based schools and technical colleges, sponsoring and training 20 students annually.
Katerina, 30, from Tetovo, is a shift manager who joined the company 7 years ago. Her mother, father, sister and brother-in-law all work in the factory too. At 23 years old, she started work as a machine operator, inserting primer into the casings she’s now worked her way up to become a shift leader.
‘I’m able to learn and progress in my career. The leadership team is supportive, the culture is positive and my aspirations are supported by the leadership team and I feel my hard work is recognised and nurtured’.
Nurturing and developing in-house talent is a pivotal part of ATS Group’s development plan. Through initiatives with Skopje based high-schools and technical colleges the company is sponsoring and training around 20 students per year to join the company across its textiles, technology and ammunition divisions.
Within ATS’s sprawling facility, high-tech processes coexist with human expertise. In the proof house, ballistics experts like Alexander, 35 (who trained at ATS Group’s project in Qatar) and his mentor, Branko, 61, (who has worked at the factory since 1981) rigorously test every batch of ammunition. “Knowing our products meet NATO standards and are relied upon by defence professionals is immensely satisfying,” Alexander says.
While the factory’s primary output is ammunition, its dedication to rigorous quality control sets it apart as a benchmark in precision and reliability. Every- half hours, meticulous checks are performed on each operation, all calibres, covering critical parameters such as density, humidity, temperature, range testing, and tooling accuracy. These evaluations are conducted concurrently to ensure that every round meets the highest standards of safety and performance. Beyond ammunition-specific quality checks, the factory upholds comprehensive environmental controls. Twice annually, assessments are conducted to monitor air, noise, and water pollution, ensuring the facility operates sustainably and responsibly. This unwavering commitment to quality underscores ATS Ammunition’s reputation for excellence and reliability in every aspect of its operations.
ATS’s ambition doesn’t stop at North Macedonia. With – projects in different parts of the world and plans to expand into the U.K. and U.S., the company aims to solidify its role as a global leader in ammunition manufacturing while transforming the economic prospects of its employees and region.
From its historic roots to its modern-day contributions, ATS Ammunition exemplifies resilience, innovation, and community. As it continues to grow and adapt, this North Macedonian powerhouse proves that even a small nation can make a significant global impact.
16 Dec 24. British troops will be outmanned in future wars, warns ex-army chief. Gen Sir Patrick Sanders says Britain has ‘always fought with our backs to the wall’ as the Government reviews strategic defence. British troops will be outmanned in any future war and enemy forces will also have better technology, the former head of the Army has said.
General Sir Patrick Sanders said modernisation would take time that was in “short supply” as the Army seeks to become more lethal.
He also said British troops had found themselves in a similar position in previous conflicts and declared: “We have always fought with our backs to the wall. This is who we are.”
He made the comments, which were first reported by The Times, to officer cadets at Sandhurst Military Academy on Friday.
The general has repeatedly warned of the dangers of an expansionist Russia.
Earlier this year he said Britain needed to “train and equip” a citizen army and boost troop numbers in comments which prompted Rishi Sunak, the then-prime minister, to rule out the return of conscription.
He told the officer cadets: “When I took over as CGS [chief of the general staff] I raised my head above the parapet, describing a 1937 moment, calling for mobilisation. What was controversial then is now no longer in dispute.
“Confronted by an implacably hostile and expansionist Russia, which is aligned with and supported by an axis of nuclear-armed autocracies, all actuated by ‘might is right’, you join the profession of arms at a watershed moment and an army that is more relevant than at any time in my career.
“So if you fight, and my experience has been that you will, sooner or later, it will likely be as the British Army always has: isolated, over-matched in numbers, equipment and technology, with tenuous supply lines and before the country has mobilised.”
He went on to say the British army had a “gilded reputation for military prowess based on an extraordinary record of success” despite these conditions.
He added: “Our country is proud of us and our adversaries and allies respect us,” he said, adding this was because of the army’s adaptability, fighting spirit and leadership.
He also branded claims new recruits were part of a woke generation are “nonsense.”
Sanders was succeeded by General Sir Roly Walker, who went on to warn in July that Britain must be ready to fight a war in three years.
In October John Healey, the defence secretary, said Britain was not ready to fight a war while earlier this month Alistair Carns, the veterans minister, said the whole British Army would be wiped out within six months to a year of a war with Russia.
Ministers have announced a strategic defence review but it is unclear whether troop numbers will be boosted.
A government spokeswoman told the Times: “This government will always do what it takes to defend this country with threats increasing, the world becoming more volatile and technology changing the nature of warfare.” (Source: Daily Telegraph)
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