After the recent classification of nuclear power as sustainable in the EU taxonomy caused a stir, the armaments industry now also wants the sustainability stamp. The traffic light coalition waves it away.
The arms industry found no support in the traffic light coalition with the demand to have their business classified as sustainable and thus have better cards on the financial market.
The armaments industry should “under no circumstances be classified as sustainable by the EU taxonomy,” said the financial policy spokesman for the SPD parliamentary group, Michael Schrodi, of the German Press Agency.
The so-called taxonomy defines guidelines for investments in a sustainable economy. Recently, the classification of nuclear power as sustainable in the environmental taxonomy caused a stir. Separately, preliminary work is being done on the social taxonomy, which could be decided by Brussels in the coming years.
Lisa Paus from the Greens called it “unchangeable that the armaments industry gets a social sustainability stamp according to the extended criteria of the EU Commission”. To praise armaments companies as a particularly social financial investment “would take such a seal of approval ad absurdum” and confuse investors.
Financing for defense industry increasingly difficult
Weapons companies and their suppliers complain that banks are increasingly unwilling to do business with them. In order to improve the situation in the industry, the industry association BDSV calls for the sustainability classification – the armaments are a prerequisite for security and peace and thus a contribution to sustainability.
The armaments industry hopes that the federal government in Brussels will push for the classification. But it doesn’t look like that at the moment. The Federal Ministry of Finance says only vaguely that no statement can be made about the financing situation of the armaments industry. And not only in the parliamentary groups of the SPD and the Greens, but also in the FDP parliamentary group, the industry demand is met with rejection.
EU taxonomy “not the right tool”
The economic policy spokesman for the parliamentary group, Reinhard Houben, understands the concerns of the industry. “Armaments companies that sell their goods quite legally and are subject to German export controls should be treated normally by banks, just like companies from other sectors.” If the financing prospects remain bleak, there is a risk that arms production will migrate abroad or the state will have to step in and nationalize. Both would not be in Germany’s interest, according to the liberal.
However, Houben is also against a classification as sustainable. “The EU taxonomy is not the right tool to solve such problems.” It needs other support. “Politicians must send a clear signal to the banks that arms deals are appropriate and necessary.” But this must happen outside of the taxonomy. “Because to declare armaments deals as sustainable would be a misnomer and not communicable to the population.”
Source: Stern
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