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March 20, 2026 Jan Henrich, Olga Schirschov, Dr Sebastian Schulz, Peter Wehner A&O Shearman + Follow x Following x Following - Unfollow Contact To embed, copy and paste the code into your website or blog: Germany’s defense sector is undergoing a historic transformation.
Against the backdrop of the ongoing war in Ukraine and fundamentally shifting geopolitical alliances, Germany's defense sector is experiencing unprecedented growth – with the Bundeswehr special fund and recent spending reforms set to create around 200,000 new jobs. For companies looking to enter or expand their business in this market, this opens up significant opportunities – but also poses a host of employment law complexities and considerable implications for HR departments.
Sectors characterized by massive investments and a limited number of market players—such as defense and semiconductors—are experiencing unprecedented levels of investment as governments and industry seek to secure technological sovereignty and resilience in critical infrastructure. Despite this influx of capital, these sectors remain relatively small in terms of market participants and are characterized by a highly specialized, limited pool of talent.
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