Facebook Instagram Twitter YouTube

As Germany Increases Its Military Budget, Weapons Companies’ Stocks Rise by 85%

Imperialist powers are using Russia’s brutal aggression against Ukraine as part of a process of rearmament. The world’s large arms manufacturers are cheering around the world.

Facebook Twitter Share
Several tanks in a row, from NATO to Ukraine.

The war in Ukraine is proving to be a lucrative business for the world’s largest defense companies. The growing militarization of the Western powers in response to brutal Russian aggression is boosting the profits of the sectors of capital dedicated to the manufacture of the means of destruction.

This Sunday, the German government announced the creation of a “special fund” that will increase the country’s military budget by €100 billion ($112 billion). The fund will strengthen the Bundeswehr, the armed forces of one of the most important imperialist powers in Europe and the world. Germany announced on Saturday that it will also send weapons and other supplies directly to Ukraine.

The decision reinforces tendencies toward militarization. Such tendencies are characteristic of an epoch of capitalist decadence and have been the means by which the great imperialist powers have resolved tensions throughout the 20th century. But they are also enormously profitable for big capital.

This Monday, shares of German weapons manufacturers rose upwards of 85 percent. The shares of German arms company Rheinmetall alone increased by around 40 percent, reaching record highs. Germany’s announcement also benefits other German defense companies such as Heckler & Koch, Krauss-Maffei Wegmann, and Diehl.

The same can be said for the giant weapons manufacturing companies in the United States. For months, U.S. defense companies Raytheon and Lockheed Martin have been telling their investors that escalating conflict between Ukraine and Russia will be good for business. Raytheon’s share prices have risen over 10 percent since the beginning of Russia’s invasion. Its stocks rose over 4.6 percent on Monday alone. Washington is duly playing its part, passing measures to send weapons to Ukraine and bolster the sales of U.S. defense companies. Across the board, stocks for weapons companies continue to rise with each new escalation in the conflict. 

Germany, the United States, and the rest of the imperialist powers grouped in NATO are using the Russian invasion demagogically, beating the war drums and fueling the profits of arms manufacturers in the process. They are the same powers that for decades have launched invasions and military interventions in their periphery — such as those in Libya and Afghanistan — to impose “order” according to their interests. War is good for business, and it is the working class and oppressed across the world who pay the price. 

Originally published in Spanish on February 28, 2022 on La Izquierda Diario.

Facebook Twitter Share

La Izquierda Diario Argentina

Our Argentinian sister site, part of the international network of La Izquierda Diario


A Russian tank fires toward Kharkiv on the May 10 offensive against Ukraine.

Russia’s Offensive in Ukraine May Be a Turning Point in the War

Russia’s May 10 offensive in Ukraine may be a turning point in the dynamics of the war, and the specter of Ukraine’s defeat is exposing the cracks that divide the Western powers.

Claudia Cinatti

May 21, 2024

Nancy Fraser, Jacques Rancière, Silvia Federicci and many others say: Stop the Criminalization of Palestine Solidarity in France!

Anasse Kazib, a union activist and former presidential candidate, was recently interrogated by French anti-terrorist police. In this open letter, more than 800 prominent intellectuals and activists call to stand united against the criminalization of Palestine solidarity.

A mash-up of Macron over a palestinian flag and articles detailing the rising repression

Against the Criminalization of Opinion and in Defense of Our Right to Support Palestine: We Must Stand Up!

In France, the repression of Palestine supporters is escalating. A conference by La France Insoumise (LFI) has been banned; a union leader has been arrested and charged for speaking out for Palestine; court cases have increased against those who “condone terrorism”; and the state has stepped up its “anti-terrorism” efforts. In the face of all this, we must stand together.

Nathan Deas

April 23, 2024

Occupy Against the Occupation: Protest Camp in Front of Germany’s Parliament

Since Monday, April 8, pro-Palestinian activists have been braving Germany's bleak climate — both meteorological and political — to protest the Israeli genocide in Gaza, and the unconditional German support for it. 

Erik de Jong

April 20, 2024


Signs and banners at the picket line in front of the UC Santa Cruz in May, 2024. UC student workers are beginning a historic strike for Palestine, against genocide.

University of California Student Workers Begin Historic Political Strike against Repression and Genocide

This week, student and postdoctoral workers at the University of California began a historic strike in response to the brutal, violent repression of students, faculty, and staff protesting for Palestine. The action marks an important escalation of the labor movement’s struggle in defense of Palestine and the right to protest.

Olivia Wood

May 21, 2024
Protesters carrying Palestinian flags march on a street in front of a line of cops

Activists, Including Left Voice and Detroit Will Breathe Members, Arrested at Protest of Biden in Detroit, Free All Arrested and Drop All Charges

Detroit police brutally arrested activists who were protesting outside of Biden's speech to the NAACP.

Left Voice

May 19, 2024
Tents at the Rutgers University in NJ during the Palestine encampment in May, 2024

What the Movement for Palestine Can Learn from the Rutgers Encampment Deal

The Gaza solidarity encampment at Rutgers New Brunswick ended in a deal between the administration and a negotiations team at the camp. It’s been a highly controversial decision. The experience at Rutgers shows the need for a truly democratic, bottom-up fight for Palestine.

Jason Koslowski

May 17, 2024

Victory for the UAW at Volkswagen Plant in Chattanooga Represents a Potential Turning Point for Labor

Following a year of strong union struggles, a Volkswagen plant in Tennessee has voted to unionize with the UAW. This victory, in the traditionally anti-union South, shows that the terrain of labor struggle in the U.S. is shifting.

Joey Eichler

May 17, 2024