Bulgaria and Germany have announced a joint defense program worth £1 billion ($1.1 billion) to establish new production facilities in Bulgaria for artillery munitions, gunpowder, NATO-standard rounds, and advanced long-range weapons.
The collaboration, led by Bulgaria’s GERB party and Germany’s Rheinmetall, began with discussions in March 2025 and expanded in April, marking a significant step in strengthening bilateral defense ties.
Contracts are expected to be signed within the next three weeks, with funding secured and the European Commission notified. In addition, a drone factory is under consideration, with Bulgaria’s state-owned Sopot arms producer likely to take a central role.
The initiative is designed to reinforce NATO’s collective defense capabilities and enhance Bulgaria’s contribution to Europe’s security. Beyond defense, it will create thousands of local jobs, stimulate the economy, and increase Bulgaria’s defense industry profile.
For Rheinmetall, the venture is projected to generate €1 billion in annual revenue, delivering significant tax contributions and boosting the region’s industrial base.
