Bundeswehr procurement and municipal responsibility: The new role of municipalities – bureaucracy and building law in focus

### Tanks instead of species protection? Why your mayor must now make way for the Bundeswehr ### "War-ready by 2029": What the new Bundeswehr doctrine means for your city ### New law overturns everything: This is why tank factories now have priority in your community ### How a lizard can stop tank construction – and what is now radically changing ###

The demand for municipal support: National security becomes more important than local building regulations

What does the BAAINBw President's statement on the responsibility of local authorities mean?

Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support, has taken a clear position: "Municipalities have a duty to keep the bureaucratic obstacles to this new era as low as possible." This demand should not be understood as an isolated expression of opinion, but rather as part of a systematic realignment of German security and defense policy following the Russian war of aggression against Ukraine.

This shift in priorities has brought about a fundamental shift. Where previously, exclusively civilian interests were the focus of municipal planning authority, national security interests must now be given greater consideration. Lehnigk-Emden notes that defense manufacturers face the same challenges as other construction projects – particularly delays due to building permit procedures and species protection requirements.

Suitable for:

• Defense logistics: Germany's key role in the NATO strategy – how AI and robots can advance the Bundeswehr

Why is it necessary to accelerate arms production?

Which threat scenarios justify this urgency?

The changing security situation necessitates a rapid rearmament of the Bundeswehr. Experts and intelligence agencies warn that Russia could be capable of a major war and an attack on NATO territory as early as 2029. General Carsten Breuer, the Inspector General of the Bundeswehr, emphasizes: "We must be war-ready by 2029." This assessment is based on Russia's systematic rearmament and the diverse hybrid attacks on critical infrastructure.

The Bundeswehr has a lot of catching up to do in almost all areas. It lacks traditional equipment such as tanks and aircraft, but especially ammunition. To make Germany and Europe more independent from the US, it is also important to acquire military capabilities that the US has previously provided within NATO. These include satellite reconnaissance, long-range missiles, and air defense.

The German arms industry faces enormous challenges. Over three decades of disarmament, capacities have been significantly reduced. If defense efforts are now to be doubled, this cannot be done overnight. The final manufacturers, such as Rheinmetall, KNDS, TKMS, and Diehl, employ only around 60,000 people in Germany; including suppliers, the number is approximately 150,000.

The Procurement Acceleration Act as a response

What exactly will change with the new law?

The Planning and Procurement Acceleration Act, passed by the Cabinet on July 23, 2025, and scheduled to enter into force in early 2026, represents a fundamental shift in direction. Lehnigk-Emden particularly welcomes the new weighting of the balancing of interests: "It states that the interests of the Federal Republic take precedence in such a balancing exercise. What was previously the same has now been rebalanced."

The law significantly expands the scope of application. In the future, all "contracts to meet the needs of the Bundeswehr" will be subject to the accelerated procedures. This includes not only military equipment, but also civilian procurement such as medical supplies, medical devices, bandages, and medications. Likewise, all construction projects and planning services for the Bundeswehr are subject to the law, regardless of whether they are defense- or security-related.

The term of the law will be extended until December 31, 2035, creating planning security for long-term projects. Exceptions to public procurement law are intended to simplify and accelerate the awarding of public contracts to meet the needs of the Bundeswehr. Direct awarding of contracts should be possible more quickly and frequently in the future.

Bureaucratic obstacles and their effects

What specific problems arise from lengthy approval procedures?

The species protection assessment pursuant to Section 44 of the Federal Nature Conservation Act has been required for all construction projects since 2010. These assessments can cause significant delays, as they involve a three-stage process. The first stage clarifies whether any protected species are present in the impact area. If positive findings are found, more in-depth assessments follow, which can lead to early compensatory measures, special risk management, or even the inadmissibility of the project.

Lehnigk-Emden specifically cites delays in building permits due to species protection requirements as an example of obstacles that Germany can no longer afford "given the global situation." This assessment reflects a fundamental shift in priorities. Where species protection once had absolute priority, it now has to be balanced against security interests.

The new law aims to ensure that the federal government's security interests take precedence over municipal planning rights in military construction projects. This does not mean that environmental and species protection are completely undermined, but the balance is rebalanced in favor of defense interests.

The role of municipalities in the field of tension

How can local planning rights and federal security interests be reconciled?

According to the Basic Law, municipalities have planning sovereignty over their territory. This includes the preparation of land-use plans and development plans. Public building law is divided into building planning law, which is regulated by the federal government, and building regulations law, which is the responsibility of the states. However, the enforcement of public building law is carried out by the municipal building supervisory authorities.

Lehnigk-Emden emphasizes that local government planning rights and the federal government's security interests "must always be balanced against each other." The trained lawyer points to the new Procurement Acceleration Act, which readjusts this balance. While both interests previously had equal weight, the interests of the Federal Republic now take precedence.

This rebalancing is also evident in other areas. For example, in the case of wind energy, the interests of civil and military aviation are being reassessed. While the expansion of renewable energies does not necessarily take precedence over national and alliance defense concerns according to Section 2 of the Renewable Energy Sources Act 2023, the aim is to create the opportunity to achieve an appropriate balance between the affected interests through reasonable adjustments.

Production capacities and industrial challenges

What efforts are needed to increase arms production?

The German defense industry faces enormous challenges in building new production capacity. Rheinmetall CEO Armin Papperger reported that his company began doubling capacity as early as March 2022. This demonstrates how quickly the industry has responded to the changing threat landscape.

Nevertheless, current capacities are far from sufficient. Klaus-Heiner Röhl of the German Economic Institute emphasizes: "Capacities must be expanded here by incorporating previously civilian industrial plants or by establishing new production facilities." The industry needs long-term prospects backed by concrete orders.

A central problem is the medium-sized structure of the German defense industry. The existing structures in Germany represent an exotic exception compared to international defense industries. The small and medium-sized defense technology companies, traditionally geared to small batch sizes, have too little expansion potential in terms of their manufacturing capacity to adapt to the current market dynamics driven by defense policy.

Hub for security and defense – Image: Xpert.digital

The hub for security and defense offers well-founded advice and current information in order to effectively support companies and organizations in strengthening their role in European security and defense policy. In close connection to the SME Connect working group, he promotes small and medium -sized companies (SMEs) in particular that want to further expand their innovative strength and competitiveness in the field of defense. As a central point of contact, the hub creates a decisive bridge between SME and European defense strategy.

Suitable for:

• The Working Group Defense of the SME Connect – Strengthening SMEs in European defense

Time pressure and strategic necessities – Between efficiency and democracy: Municipalities as security architects

Why is time such a crucial factor?

Defense Minister Boris Pistorius has declared speed as the top priority in procurement. "The time factor is paramount," he repeatedly emphasizes. The Bundeswehr is to be combat-ready by 2029 at the latest. Given threat assessments that do not rule out a possible Russian attack on NATO territory as early as 2027 to 2030, the time pressure is understandable.

The problem, however, is that modern defense production takes time. Armor steel must be ordered at least a year in advance. Personnel is a huge bottleneck, not only in the Bundeswehr and defense technology. Rheinmetall alone is reportedly looking for more than 3,500 new employees. This requires setting up additional production lines, and ordering and installing the machines needed for them. None of this can be done overnight.

At the same time, many companies are waiting for orders to arrive before taking these steps, as profitability remains the top priority. Hans Christoph Atzpodien, Managing Director of the German Security and Defense Industry Association, therefore calls for "clear announcements" for the industry: "The industry can deliver most of the goods if it is clearly told what is needed, in what quantities, and within what time frame."

Suitable for:

• The new dimension of defense: Why speed matters over security

The rebalancing of interests

How is the relationship between civilian and military priorities changing?

This new era brings with it a fundamental rebalancing of priorities. While civilian interests enjoyed almost absolute priority over the past three decades of disarmament, security interests must now be given greater consideration. This is evident not only in armaments projects, but also in other infrastructure projects.

The new Procurement Acceleration Act, for example, allows the Bundeswehr to block civilian construction projects if they could interfere with military missions. One example is wind power projects that could potentially interfere with air defense radar. In these cases, the law can prevent such construction projects from being implemented, as they could jeopardize the country's defense capabilities.

This development is also reflected in spatial and regional planning. The requirements of defense and civil protection should be given greater importance without undermining their character as a principle that can be weighed up. This ability to weigh up must be maintained in order to bring defense concerns into practical concordance with other concerns. However, this upgrade makes it clear that spatial and regional planning must support the country's defense capability more strongly than before.

Municipal scope for action and limits

What concrete measures can municipalities take?

Municipalities have various options for supporting defense production without sacrificing their fundamental planning powers. In the area of ​​building permit procedures, they can contribute to a change of pace through expedited processing and a pragmatic interpretation of regulations.

For projects within development plans that are less than seven years old, it is already possible to refer to the species protection assessment when preparing the development plan. For projects in inner areas, a general presumption can be applied that no species protection concerns are affected.

Municipalities can also contribute to defense production by actively providing land. Designating commercial land for defense companies and their suppliers can support the necessary capacity expansion. It should be noted that not only traditional defense companies, but also suppliers from other sectors such as the automotive industry, are expected to work for the defense industry.

Legal framework and limits

What are the legal limits of municipal support?

Despite the new priorities, the fundamental legal structures remain in place. Planning law will continue to be regulated by the federal government, while building regulations remain in the hands of the states. Municipalities retain their planning sovereignty but must consider the changed weightings when balancing the various interests.

The expedited procedure does not change the substantive legal situation. Even with expedited procedures, the substantive requirements of construction law must be met. This means that safety standards, environmental protection requirements, and other mandatory regulations continue to apply, even if the procedures are processed more quickly.

An important aspect is the consideration of secrecy concerns. Military facilities are subject to special security requirements that must be considered during planning and approval. This can lead to restrictions on the usual participation procedures if reasons of secrecy or the urgency of the project prevent the implementation of normal approval procedures.

Challenges for administration

How can local authorities meet the new requirements?

Local governments face the challenge of adapting traditional planning and approval procedures to these new priorities. This requires not only legal expertise but also a rethinking of administrative culture. Where previously the focus was exclusively on civil concerns, security interests must now be considered.

Cooperation between different levels of government will need to be intensified. Security-relevant projects require close coordination between municipal, state, and federal authorities. This could lead to more complex procedures, even if the overall goal is to accelerate them.

Another aspect is the staffing of the administrations. Accelerated processing of applications requires sufficient and qualified staff. At the same time, employees must be sensitized to the new legal framework and the changing priorities.

Impact on urban development

What are the long-term consequences of prioritizing arms production?

The increased consideration of defense interests will have long-term effects on urban development. Municipalities must consider military concerns more closely than before in their land-use planning. This can lead to conflicts of use if civilian development plans conflict with security interests.

The establishment of defense companies also brings opportunities. The sector is growing rapidly and has the potential to become an important economic pillar. Highly skilled jobs in the defense industry can strengthen the local economy. At the same time, municipalities must address the challenges associated with defense production, such as increased security requirements and potentially limited public participation in sensitive projects.

The integration of defense sites into urban development requires careful planning. Security zones, transport routes for military equipment, and connections to supra-regional infrastructure must be taken into account.

The balance between efficiency and democracy

How can acceleration be reconciled with democratic principles?

The acceleration of planning and approval procedures must not lead to an erosion of democratic participation rights. Even in priority security projects, the fundamental principles of citizen participation and due process must be upheld.

The new Procurement Acceleration Act provides for special procedures to be applied in cases of confidentiality or urgency. However, this must not become the norm, but must be limited to truly security-critical exceptional cases.

Municipalities are faced with the task of developing transparent and comprehensible criteria for determining when security interests take priority and when normal procedures apply. This requires careful consideration of each individual case and the development of appropriate guidelines for administrative practice.

A turning point: Municipalities as key players in German security policy

What developments can be expected in the coming years?

The reorientation of German security policy will have a lasting impact on the work of local authorities. The Procurement Acceleration Act is only the first step in a longer process of adapting to the changing security situation. Further legislative changes and adjustments to administrative practices are to be expected.

The defense industry will grow significantly in the coming years. This will lead to increased demand for commercial space, infrastructure, and skilled workers. Municipalities that advance appropriate planning early on can benefit from this development.

At the same time, the public debate about the right balance between security interests and other concerns will continue. Local authorities will have to play an important role as mediators between the various interests.

The coming years up to 2029, the target year for the Bundeswehr's combat readiness, will be crucial. During this period, it will become clear whether the new balance of interests will actually lead to an acceleration of arms production without jeopardizing other important societal goals. Local authorities, as partners of the federal government, will have to play a key role in implementing this change of direction.

Markus Becker

I would be happy to serve as your personal advisor.

Head of Business Development

Chairman SME Connect Defense Working Group

LinkedIn

Konrad Wolfenstein

I would be happy to serve as your personal advisor.

contact me under Wolfenstein ∂ Xpert.digital

call me under +49 89 674 804 (Munich)

LinkedIn