German defence industry stocks fall amid discussion over aid to Ukraine

Disputes in the German government regarding further assistance to Ukraine and its cost led to a significant drop in the share prices of German arms manufacturers.

Source: Spiegel, as reported by European Pravda 

Details: Rheinmetall shares, which had surged 28% in the previous two weeks, plummeted 5% at the start of trading on Monday 19 August, though losses were decreased to just under 3% by lunchtime. And shares of Bavarian arms producers Renk and Hensoldt fell almost 4% by lunchtime after falling earlier.

The price decrease comes as negotiations in Germany's defence sector suggest that the German government may not yet commit extra funding for military support to Ukraine.

This weekend, German media reported that the German federal government's current budget plan does not include additional funding to support Ukraine.

The Ukrainian Foreign Ministry called these claims false and deceptive, while the German government stated that the cut had nothing to do with politics or economics.

Meanwhile, German politicians from both the opposition CDU and the coalition, particularly from Olaf Scholz's party, the SPD, have criticised this approach to providing additional financial help to Ukraine, claiming that it could jeopardise German security.

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