Swiss weapon head is looking for closer European straps for defense racing | Company Business News

(Bloomberg) – Switzerland’s most senior official for obtaining arms acquisition is seeking closer cooperation with European neighbors, as the global demand for arms shores and the country’s own defensive industry falls. Russia’s full -scale invasion of Ukraine and concerns about US President Donald Trump’s commitment to NATO’s mutual defense clause forces Europe to regain, which pushes weapons firms to their capacity restrictions. This makes it more challenging for small countries such as Switzerland to place orders, says Urs Loher, director of Armasuis, the government agency responsible for obtaining the Swiss army. To give this more negotiation, Armasuises are in talks with Germany to collectively acquire helmets, while the agency is also considering expanding the collaboration in electronic warfare with foreign partners. “We will increasingly need to be involved in such collaboration projects to ensure that the small amounts we need within an appropriate period at somewhat reasonable prices,” Loher said in an interview in Bern. Artillery ammunition prices, for example, have been fourfold with the waiting times of five to six years, he said over the past three years, he said. The dilemma of Switzerland is partly a legacy of a peace dividend after the Cold War that the neutral nation-which was almost completely surrounded by NATO members as 1% of the gross domestic product on defense. At the same time, the neutrality means that it has imposed strict export rules for weapons, blocking the shipping of Swiss weapons to Ukraine. “We pay the price of over 30 years of peace dividend,” Loher said. “Switzerland has suffered major collateral damage due to the blocked re -export of weapons to Ukraine. Our European partners have lost confidence and it will take time to rebuild it.” The Swiss army and government agencies have been working on outdated arms systems for many years, especially in air defense, and delayed purchase programs, including for Israeli drones. At current levels, Swiss air defense systems can cover only 8% of the country, or four from the country’s ten largest urban areas, Loher said. On Thursday, the Lower House of Parliament approved 1.7 billion Swiss Frank ($ 2.1 billion) purchasing projects, but rejected a proposal for an additional 1 billion franc for ammunition against aviation. New defense minister Martin Pfister said there is currently “no financial scope” to increase the army budget. Meanwhile, since the Cold War, the NATO member states have adopted the alliance’s most ambitious military driveway since the Cold War on Thursday, with an agreement to spend the spending later this month. Bloomberg reported that it included a five-fold increase in soil-based air defense systems capabilities. The challenge of protecting reliable weapons supplies comes because Switzerland’s own defense industry is placed by the country’s neutral attitude. The blocking of weapons deliveries to Ukraine in particular meant that other European governments are increasingly cutting Swiss products from their weapons supply chains while strengthening their defense. This is according to Loher, 58, who served as CEO at the Swiss subsidiaries of Rheinmetall AG and Thales SA before taking over the stirring of Armasuis in 2023, ‘if we no longer take over our own weapons industry, we will weaken to the Switzerland bargaining position. “It would make it harder to have an army as independent and autonomous as possible.” Such fears urged the Swiss government to ask parliament to reinstate its power to approve the re -export of weapons. A commission in the upper house of parliament suggested that 25 countries, including most NATO members, should be released to get permission for re-exports. Without that flexibility, the Swiss weapon industry quickly faces an existential threat. “Whether we want a defense industry here in Switzerland is finally a political discussion – politics has set the framework,” Loher said. “I simply want to point out that the longer the discussion goes, the more it becomes redundant.” (Updates with the comment from the Minister of Defense in the eighth paragraph) More stories like this are available on Bloomberg.com © 2025 Bloomberg MP