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IW-Trends No. 4 26. January 2026 Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey

The present study analyses the role of the private sector in Germany's national civil and military defence strategy in the light of the deteriorating security situation in Europe.

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The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey
IW-Trends No. 4 26. January 2026 Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl

The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey

Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl German Economic Institute (IW) German Economic Institute (IW)

The present study analyses the role of the private sector in Germany's national civil and military defence strategy in the light of the deteriorating security situation in Europe.

An overarching plan for deterring and, in the eventuality of war, fending off Russian aggression cannot be considered solely in military terms, but requires the systematic inclusion of the whole economy. The contribution which companies can make can be divided into four areas: releasing staff for military and civil defence exercises, safe guarding production and supply chains in the event of a crisis, defence against hybrid attacks involving both virtual and physical infrastructure, and integration into defence-related value chains. Our analysis of a representative survey of companies conducted by the German Economic Institute’s IW Future Panel makes clear that, in Germany, protection against threats from the internet and the immediate risk of cyberattacks is already well developed. However, there are serious shortcomings in planning for emergencies, dealing with personnel and material shortages, communication with the security authorities, and in preparing for supply chain bottlenecks. So far, only a minority of companies grant leave to reservists, though this could increase significantly with the growing importance of voluntary military service. Since the nation’s deterrence and defence capabilities remain incomplete without a resilient and well-prepared business sector, there is an urgent need for better communication, a clear legal and regulatory framework and a timely involvement of companies in overall defence policy.

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The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey
IW-Trends No. 4 26. January 2026 Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl

The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey

Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl German Economic Institute (IW) German Economic Institute (IW)

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The Cost Competitiveness of German Industry in Times of Considerable Uncertainty
IW-Trends No. 2 27. August 2025 Christoph Schröder

An International Comparison of Unit Labour Costs: The Cost Competitiveness of German Industry in Times of Considerable Uncertainty

On average, German unit labour costs in 2024 were 22 percent higher than in the 27 other countries considered in this study and 15 percent higher than in the other nations of the eurozone, a disadvantage for which the above-average productivity of German industry was insufficient to compensate.

Christoph Schröder IW

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IW-Policy Paper No. 8 28. April 2025 Hubertus Bardt / Berthold Busch

Defending Europe: Reflections on the White Paper on the Defense of Europe

The changed and intensified security situation of recent years has particularly affected Europe. After the wars against Georgia and Ukraine, the defence of the European Union (EU) and NATO's eastern flank must therefore be adapted to the new threats.

Hubertus Bardt / Berthold Busch IW

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