00:00Munich is fast becoming one of Europe's leading centers for defense technology, with young
00:05firms building AI-powered drones and military software, as the German government has dramatically
00:10raised its 2026 federal defense spending plans.
00:14The total budget and off-budget funds are around 108 billion euros, almost 24 percent
00:20higher than the previous fiscal plan, clearly exceeding 2 percent of GDP for the first time
00:25since 1990, all in the name of modernization.
00:29Around the Bavarian capital, defense firms including Quantum Systems, Helsing and Titan
00:34technologies are expanding rapidly, with Quantum supplying drones to Ukraine and Titan having
00:39grown its workforce tenfold since 2023.
00:43The region's Chamber of Commerce and Industry says the number of pure defense startups has
00:48doubled to around 60, helped by engineering talent, universities and links between industry
00:53and government.
00:54However, challenges remain as companies report lengthy security wetting and slow permit approvals
01:01for new production sites, limiting their ability to expand even when orders are available.
01:07The rapid growth has also brought security concerns with alleged Russian-plus targeting defense industry
01:12figures.
01:13Oh God, I'm scared.
01:14Oh God, I'm scared.
01:15Oh God, I'm scared.
