Merz vows to ease German military-exports rules for Gulf partners

Friedrich Merz has proposed simplifying the process by which Gulf states obtain German military equipment, framing the change as a pragmatic alignment of trade policy with deepening strategic ties. Under the proposal, some export licensing would become more permissive and approvals faster for items that today face strict review, potentially shortening procurement cycles and improving revenue visibility for defence contractors. For Gulf buyers, easier access to German systems would diversify suppliers and strengthen bargaining power vis-à-vis other arms producers. The announcement amplifies a long-standing policy tension in Germany between commercial opportunities for its industrial base and legal and reputational obligations to limit arms flows into volatile regions. Internally, the proposal will test coalition dynamics where conservative economic priorities often clash with parliamentary oversight and human-rights safeguards. Internationally, allied capitals—especially NATO partners—are likely to watch closely for signs that Berlin is recalibrating export policy toward more transactional security partnerships. The broader policy environment in Berlin shows parallels: officials are also preparing to classify certain urgent energy works as defense-related to speed contracting and construction, a move intended to shore up supply resilience but one that compresses normal procurement checks. That procurement carve-out, if applied widely, could shave months or years off delivery schedules for critical infrastructure while prompting scrutiny from the European Commission over procurement rules and potential state-aid implications. Practical implementation would require reworking legal frameworks for dual-use items, tightening or reinterpreting end-user assurances, and drawing narrow criteria to avoid scope creep in what counts as defense-related work. Civil-society groups, transparency advocates and some parliamentarians are already likely to intensify monitoring and pursue legal challenges, increasing litigation and reputational risks for suppliers. Defence firms could respond by accelerating production planning and investment in anticipation of steadier Gulf demand, but investors will weigh those commercial upsides against political and regulatory uncertainty. Policymakers in Berlin will need to balance urgent industrial and energy resilience aims against fiscal discipline, environmental safeguards and the risk of strained relations with European partners.