rss icon Subscribe
desktop mobile

Germany Vows to Reach 'Fair Contract' for New Warships

Posted by Eric Haun

German Defence Minister Ursula von der Leyen vowed on Friday to press a consortium led by Luerssen Werft of Bremen for a "fair contract" for five new warships, saying the group's initial bid was too high.
"My goal is to get the contract started in this legislative period, but we want a good contact, we want a fair contract and above all a realistic one," von der Leyen told reporters on Friday. "We are working hard on that now."
Asked if there was any chance the consortium's reported initial bid of 2.9 billion would be accepted, von der Leyen said, "I can state clearly that that number will not stand."
Defence industry sources said last week the German government had rejected the initial bid from the consortium before it exceeded the budget target of 1.5 billion euros ($1.59 billion).
The Handelsblatt newspaper reported this week that the bid came in at 2.9 billion euros, nearly twice the expected amount.
German lawmakers first announced plans in October buy five more of the warships to bolster security in the Baltic Sea and the Mediterranean.
Critics have warned that the ministry's decision to skip an open competition could lead to higher costs. They also question the government's plan to secure parliamentary approval for the planned purchase as soon as June.
Germany is boosting military spending by nearly 2 billion euros in 2017 to 37 billion euros, or around 1.2 percent of gross domestic product, but says it will take time to reach the NATO target of spending 2 percent of GDP on defence.


(Reporting by Reuters TV and Sabine Siebold; Writing by Andrea Shalal; editing by Ralph Boulton)

Apr 21, 2017

 

Contracts

DP World Should Rethink Port Deals in Somalia - Foreign Minister

(File photo: DP World)

Somalia's foreign minister said on Friday that Dubai state-owned port operator DP World should

Oldendorff Halts Guyana Operation Due to Rusal Crisis

(File photo: Oldendorff)

German shipping group Oldendorff Carriers is stopping its business in Guyana, the company said on

Ships Carrying US Sorghum U-turn after China Tariffs

© James Lantsbery / MarineTraffic.com

Several ships carrying cargoes of sorghum from the United States to China have changed course

Eye on the Navy

US Navy to Commission Amphibious Transport Dock Ship Portland

Official U.S. Navy file photo.

The Navy will commission its newest amphibious transport dock, the future USS Portland (LPD 27)

Italian Navy Divers Practice with Explosives

(Photo: EU NAVFOR)

A team of Italian specialist Navy Explosive Ordnance Disposal (EOD) divers carried out

HMS Forth Commissioned

(Photo: Royal Navy)

The first of the U.K. Royal Navy's next-generation Offshore Patrol Vessels (OPV) has been formally

Maritime Apps