Hans Uwe Mergener, photo: private

Hans Uwe Mergener, photo: private

It is not the money itself that counts, it is its correct use that is important

So now it's raining money. The latest budget decisions in the German Bundestag provide the armed forces, in our case the navy, with a unique opportunity to rapidly improve their operational capability. However, instead of uncritically pouring this blessing into the industry's coffers, the additional funds must be used wisely and in a targeted manner. The navy should significantly improve its operational capability by 2029. The reality shows: Many of our naval assets do not meet the requirements and require urgent modernisation. We need to take measures as quickly as possible that will have an immediate impact.

In his Commander's Intent for 2025, the inspector makes it clear that the modernisation of the navy must not become bogged down in protracted future projects. It would be absurd to reinvent the wheel or invest in concepts that nobody needs. Could our manageable navy rely on tried and tested models? Successful equipment, training and deployment concepts in other navies offer a make-it-happen experience that could quickly bridge the technical backlog and close operational gaps in the short term. It should be noted here that not everything is or is going badly in our navy! OPEX (Operational Experimentation) represents a welcome development in the rapid evaluation and utilisation of innovations.

In addition to money, it seems equally important to sharpen the focus on institutional reforms. It is not only important to close operational gaps, but also to tackle structural deficits at their roots. Germany is a reorganisation case in which excessive structures need to be dismantled and inefficient processes need to be consistently redesigned. This is the only way to turn the rain of money into sustainable modernisation and operational excellence. Which could benefit future generations and not just leave them with a burden of debt.

Concrete solutions from expert forums and official reports call for closer co-operation between politics, industry and operational units. Might it not be advisable to ask domestic naval systems houses to retrofit existing ships with, for example, modern combat systems and other improvements (keyword: multi-domain operations)? What should we think of an approach that favours iterative upgrades over expensive new procurements? After all, aren't we squaring the circle, as we can't take the ships we have out of the water to modernise them immediately - while on the other hand we don't have the personnel to crew new, i.e. additional units?

The warnings from abroad - such as the chronic problems in the South African armed forces, which I was able to witness at first hand during my time in the service, as well as the discussions in the USA about the US Navy's defence planning - and the repeated warnings from the German Federal Audit Office about excessive costs and inefficient structures are evidence of this: Without reforms, we are not only buying ourselves increased debt, but we are also getting increased ineptocracy in return. Presumably the opposite of fighting power.

It seems to me that the power to reform is more important than opening the purse strings. And I am not convinced that a rate of 3.5 per cent is the right benchmark. After all, it is important to bear in mind that, based on current projections, the defence budget would amount to 173.485 billion euros in 2029. As can be seen on the data portal of the Federal Ministry of Finance, as of 25 February 2025: in 2029, nominal GDP will amount to 4,957.0 billion euros. Please do not misunderstand: I am in favour of proper funding for the armed forces. But not at any price, given other deficits in our country.

A sense of proportion, foresight and methodical calculation can turn today's rain of money into sustainable operational strength. Which is why I often find myself recalling the prayer of a superior from my speedboat days: "Lord, let it rain brains!" Clever minds and resolute reforms are needed to set the right course.

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