A significant proposed contract for combat drones intended for the German military is under intense scrutiny from lawmakers due to concerns regarding the involvement of US tech billionaire Peter Thiel, who holds stakes in one of the defense start-ups linked to the deal.
Next week, contracts between Berlin-based Stark Defence, where Thiel has a financial interest, and Munich-based Helsing for the supply of attack drones will be reviewed by parliament’s budget committee. Lawmakers have expressed apprehension about the potential implications of Thiel’s involvement, given his controversial reputation and political affiliations.
Greens MP Sara Nanni, who serves as the security policy spokeswoman for her party, emphasized the need for thorough vetting of the risks associated with investors like Thiel. She indicated that the strategic nature of this drone deal necessitates careful consideration, remarking, “I have to take a very close look at it.”
Thiel, a German-born entrepreneur known for co-founding PayPal and Palantir and being an early investor in Facebook, is notably associated with former US President Donald Trump and holds libertarian views that many consider polarizing, often expressing skepticism towards liberal democracies.
Dietmar Bartsch, a member of the far-left party Die Linke, has openly criticized the deal, suggesting it should be halted entirely. He characterized Thiel as an “avowed opponent of liberal democracies,” stating that investing billions into a firm with such affiliations is unacceptable.
Germany’s Defence Minister Boris Pistorius, representing the Social Democrats (SPD), also echoed concerns, stating that it is essential to clarify Thiel’s level of influence before any contract is awarded to Stark Defence. He highlighted the important implications of the proposed contracts, which have an initial combined value of approximately 536 million euros ($630 million) and could potentially rise into the billions with additional options.
In reaction to the growing unease, conservative MP Thomas Roewekamp, who chairs parliament’s defense committee, largely dismissed worries about Thiel’s stake. He argued that Thiel’s “small stake” was not of significant consequence, emphasizing the urgency of acquiring the drones for the defense of German troops stationed along NATO’s eastern flank in Lithuania.
While Stark Defence has not disclosed the exact details of Thiel’s ownership, the company noted that his stake is below 10 percent and does not afford him any special rights or influence. It also mentioned that access to confidential technical information is strictly regulated by German authorities.
Despite the concerns surrounding Thiel, lawmakers like Nanni have conveyed support for risk-taking as a means to strengthen Europe’s technological and defense sectors. “If we don’t want to buy high-tech equipment from the US, then we also have to be prepared to take on more risk,” she stated.
Additionally, SPD MP Andreas Schwarz, an expert in budget and defense policy, indicated sustained parliamentary support for the drone contracts. Schwarz pointed out that Thiel has investments in other software companies used by both German authorities and NATO, suggesting that his involvement is not unprecedented in defense contexts. However, he affirmed that if the defense minister seeks more clarity on Thiel’s influence, parliamentary backing would be provided to address those concerns.
