A multibillion euro German military drone contract is facing political scrutiny over billionaire investor Peter Thiel’s stake in a Berlin defence tech firm, according to a report by investigative portal Politico.
The controversy centres on Stark, a start up in which Thiel holds a minority share. Lawmakers within Chancellor Friedrich Merz’s coalition have questioned whether the investor could exert influence over company decisions or gain access to sensitive defence information. Concerns have also been raised over pricing details in the contract, with key figures reportedly redacted in documents submitted to parliament.
Green lawmaker Jeanne Dillschneider said hat while Germany needs drones, questions about Thiel’s influence must be clarified before approval.
The confidential seven year framework agreement includes an initial order worth €268.6 million and could reach €2.86 billion if all options are exercised. It covers the production of loitering munitions and related systems, marking one of Germany’s first such purchases since Russia’s invasion of Ukraine.
Under German law, contracts exceeding €25 million require approval from the parliamentary budget committee, with a vote scheduled this week.
Defence Minister Boris Pistorius has dismissed calls to delay the deal, while Stark said no shareholder has special information rights and that foreign investments above 10 percent would trigger a government review.
