This article was originally published by SIPRI on 7 November 2014. It is published as part of a collaborative partnership between SIPRI and Economists for Peace and Security (EPS).
As German industry is not at the top technological level in a number of areas of arms production—particularly in aerospace and electronics—preferential treatment for German companies has often led to German participation in co-production projects with companies from other countries. In terms of arms exports, while the 2000 policy guidelines on German arms exports (PDF) state that export decisions should be based on security policy rather than economic considerations, the latter continues to loom large in German arms export-licensing policy.