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Germany- a Revolution in defense Policy

German Chancellor Olaf Scholz stood before the Bundestag, three days after Russia ordered troops into Ukraine, the federal Parliament in Berlin, and addressed the lawmakers in a special session on 24_Feb 2022, marks a watershed moment in the history of our continent,” he said,:”calling the Russian invasion a “Zeitenwende”, an epoch-changing event”.
Germany plans to massively boost defense spending in 2022 with a new $112.1 million security fund for military modernization, in light of Russia’s invasion of Ukraine. Olaf Scholz, the German chancellor, also announced during an address at a special parliamentary session that the country will now invest more than two percent of its GDP in defense annually moving forward.
Chancellor Olaf Scholz said Long-term defense spending is to be increased year on year by more than 2% of GDP, he said. It is currently about 1.5% with Germany having been under growing pressure from its NATO allies, in particular the US, to increase the amount for years. The existence of the special fund should be anchored in Germany’s constitution, Scholz said, in order to ensure it remained a guarantee beyond the life of the current parliament.
Germany has long been criticized by its allies for its resistance to increasing its defense spending. This position has been reinforced by a strong pacifist sentiment among the electorate linked to Germany’s Nazi past. In recent weeks, the country was also criticized for having not offered enough material support, in particular refusing to deliver lethal weapons to assist Ukraine to defend itself against Russia.
Germany Defense plan
Germany plans to buy up to 35 US-made F-35 fighter jets and 15 Eurofighter jets, a parliamentary source said on 14th_March 2022, as part of a major push to modernize the armed forces in response to Russia’s invasion of Ukraine. The F-35 jets made by Lockheed Martin would help replace Germany’s decades-old Tornado fleet, according to media reports confirmed by the source. Tornados are the only jets capable of carrying US nuclear bombs stationed in Germany that are a key part of NATO deterrence.
The German government can do much more to shape European armaments structures, for example by developing tanks, air defense systems and the next generation of combat aircraft together with European partners. For other equipment – such as specialized aircraft and helicopters – buying market-available products makes sense. These would be purchased primarily in the United States, a clear political investment in the transatlantic partnership.
The defense policy uplift is a seismic shift from Germany’s quasi pacifist foreign and security policies since the end of the Cold War and from the post-1945 cultural and constitutional stance of self-imposed restraints around defense spending and military activities. Witnessing the consequences of undeterred Russian aggression in Ukraine compelled Germany’s citizens and politicians to think about the strategic imperative to prepare for potential conflict and equip its armed forces optimally.
According to a recent survey by the research institute YouGov, a majority of 63 percent of Germans supported the one-time special fund for armaments projects and investments by the Bundeswehr.
Changes in German security policy
It is still hard to grasp the magnitude of the changes in German foreign and security policy that occurred in a matter of days, and it will remain to be seen if parliamentarians and the governing coalition can translate the initial announcements into a sustained effort and a new role for Berlin in the world.
Pressure on the German chancellor from within the coalition and German politicians and from the USA continues to escalate, demanding that he send and speed up more weapons. The Green Party, Foreign Minister Annalena Baerbock is leading these pressures, and this means that the German government is still divided over the war in Ukraine, on the issue of arms supplies and cuts Energy imports from Russia.
By: Jassim Mohamad - Bonn
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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