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European countries should pool military orders to avoid price spikes and achieve more efficient economies of scale, Rheinmetall CEO Armin Papperger told Euractiv following meetings with European Commission President Ursula von der Leyen and other industry leaders from North Rhine-Westphalia.
“We need to pool [orders] to achieve fair prices,” Papperger said.
He noted that the model—where one country coordinates a large order on behalf of a broader group of buyers—has already proven effective in the procurement of munitions and air defense systems.
Both the European Commission and NATO are encouraging joint procurement to curb rising costs and offer defense manufacturers long-term predictability to invest in increased production capacity.
Papperger and other executives also criticized the EU’s REACH chemicals regulation, calling it overly restrictive. He argued that exemptions are needed to “speed up the pace,” particularly for components like lead, which is restricted under REACH but remains critical for defense applications such as ammunition.
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