For supporters of budgetary discipline and debt brakes, the term „special fund“ was already considered an unacceptable euphemism. After all, it essentially involved 100 billion euros in credit-financed „special expenditure“ to upgrade the German armed forces. However, it has been apparent for some time now that this debt is creating value. The surge in military demand resulting from the war in Ukraine and doubts about the United States as a protective power in Europe has caused the share prices of companies such as Rheinmetall, Hensoldt and Renk to skyrocket.

Beyond this initial spark, which benefits the core of the defence industry, fiscally driven rearmament is also unleashing more and more innovative forces at other companies. Heidelberger Druck, which has been directly affected by the consequences of digitalisation and the declining importance of printed products in its traditional core business of sheetfed offset printing, is venturing into the defence business in cooperation with Vincorion. The 175-year-old company is thus focusing its technological expertise more strongly on security-critical technologies and therefore expects a sustained upturn in sales in the coming years. The share price crowned a rally that had been running since the beginning of April with a jump of more than 35%. The once stunted market capitalisation has now expanded again to around 665 million euros.

Heidelberger Druck is not an isolated case. Cologne-based engine manufacturer Deutz has expanded into the development of robust and powerful drives for military tracked vehicles as a new business area and now generates 2% of its sales from defence contracts, with an upward trend. The chemical company Alzchem has switched from producing agricultural chemicals to components for security explosives, with the business expected to soon account for 10% of sales. And the trend is spreading. Other companies whose core business is suffering due to weak customer demand, such as automotive suppliers, are finding alternatives in the defence sector. There is no reason to expect this new growth vein to dry up anytime soon. The German defence budget alone is set to grow from 62.4 billion euros in the current year to 153 billion in 2029.