Bulgaria and Germany have unveiled a joint defense initiative worth £1 billion ($1.1 billion) to expand arms production in the Balkan region. Spearheaded by Bulgaria’s GERB party and German giant Rheinmetall, the projects will establish new factories to manufacture artillery shells, NATO-standard munitions, gunpowder, and long-range weapons. Talks began in March 2025 and advanced rapidly in April, with contracts expected within three weeks. Bulgaria’s state-owned Sopot armaments producer is tipped to host major operations. Beyond conventional arms, plans also include a new drone factory. The collaboration is expected to create thousands of jobs, boost tax revenues, and strengthen Bulgaria’s NATO role, while Rheinmetall targets €1 billion in annual turnover from the program.
