BERLIN (AP) — The German government said Monday that it intends to take a 40% stake in defense contractor KNDS, whose products include Leopard and Leclerc tanks, as it tries to strengthen European production along with NATO ally France.
The French state already has a 50% stake in KNDS, which was formed in 2015 with the merger of Germany's Krauss-Maffei Wegmann and France's Nexter. The other half is held by the German family behind Krauss-Maffei Wegmann.
Headquartered in Amsterdam, KNDS had 4.4 billion euros ($5 billion) in revenue last year and more than 11,000 employees.
European countries are moving to ramp up their defense spending and production and boost their military ranks as they contend with Russia’s war in Ukraine and concerns about the United States’ unpredictability.
The German government said its planned stake “will secure long-term influence on a company that is strategically significant for European security and defense capability.” It added in a statement that “national industrial value creation, as well as technological sovereignty and the protection of security interests and key technologies in Germany" also will be strengthened.
A separate joint statement said that the German and French governments have reached an agreement on the strategy and governance of KNDS, “of which they intend to become joint shareholders through transactions aiming at equal shareholding levels for both countries.”
It didn't specify when that will happen or what level the countries' stakes will ultimately settle at, but said the accord paves the way for a possible IPO of KNDS in the near future.
The two governments said their agreement “reflects the shared determination of France and Germany to strengthen Europe’s industrial and defense capabilities, support their armed forces, and strengthen European sovereignty over the long term.”
Beside the tanks, KNDS' products also include Puma infantry fighting vehicles and Boxer and Dingo armored personnel carriers.
FILE - A boxer armoured personnel carrier, from left, a Puma infantry fighting vehicle and a Leopard battle tank are displayed during the opening of a new production line production line of Boxer 8x8 wheeled armoured personnel carrier produced by pan-European defense company KNDS in Munich, Germany, on April 22, 2026. (AP Photo/Matthias Schrader, File)
FILE - A boxer armoured personnel carrier, from left, a Puma infantry fighting vehicle and a Leopard battle tank are displayed during the opening of a new production line production line of Boxer 8x8 wheeled armoured personnel carrier produced by pan-European defense company KNDS in Munich, Germany, on April 22, 2026. (AP Photo/Matthias Schrader, File)
U.K. Prime Minister Keir Starmer resigned on Monday, paving the way for Britain to have its seventh prime minister in just over a decade.
He said he was stepping down as leader of the governing Labour Party but will remain caretaker prime minister until a new Labour leader is chosen by the party.
Andy Burnham, who won a special parliamentary election last week, is the front-runner to replace Starmer as Labour leader.
Starmer won a landslide victory at a general election in 2024, but a series of missteps badly damaged his credibility.
Here's the latest:
Starmer stood behind a lectern featuring a crest with a lion and a unicorn.
One is a not native to the U.K. and the other is mythical.
Both have shared the distinction of being part of the royal coat of arms since the 17th century.
The lion, although never living in the wild of England, is its national animal. The unicorn, though fictional, is Scotland’s official animal.
The two became part of the crest when the two crowns were united in 1603, when King James I ascended the throne in England; he was already King James VI in Scotland.
When he was elected in 2024 in a landslide victory for Labour, Starmer pledged to steady the ship and end years of political chaos under his successors, the Conservative Party.
Starmer had succeeded Rishi Sunak, who held the top job from 2022 to 2024.
Before Sunak, Liz Truss lasted only 45 days. Truss followed three other Conservative prime ministers: Boris Johnson (2019-2022), Theresa May (2016-2019), and David Cameron (2010-2016.)
Starmer said Monday that nominations will open on July 9 and close when Parliament breaks up for its summer recess, which is scheduled to begin July 16. The contest will be open to members of Parliament from the ruling Labour Party.
Former Manchester Mayor Andy Burnham is the leading candidate to replace Starmer. The question now is whether anyone will challenge him.
If there is no challenge, Burnham could become Labour leader and thus prime minister soon after nominations close. Even if there is a contest, Starmer said a successor would be selected by Sept. 1.
European Commission President Ursula von der Leyen praised Starmer’s legacy after news of his resignation in a post online on Monday.
“It can take many leaders years to grow into the statesman you became in just two years,” she said on X. “European and Ukrainian security is stronger because of you. Thank you, dear Keir.”
Starmer’s voice choked with emotion near the end of the brief statement.
“The question my party is asking now is whether I am best placed to lead us into the next general election,” Starmer said. “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.”
British Prime Minister Keir Starmer says he is stepping down as leader of the governing Labour Party.
Starmer says he will remain caretaker prime minister until a new Labour leader is chosen in the next few weeks.
Starmer made the announcement after facing growing pressure to hand over to a new leader who can try and revive the government’s flagging fortunes. He has been in office since leading Labour to a landslide election victory in July 2024. In those two years his popularity and that of the party have plummeted.
As Starmer began his speech, protesters nearby played the EU anthem, Beethoven’s “Ode to Joy.”
Expectation is building that U.K. Prime Minister Keir Starmer will set out a timetable for his resignation, conceding to pressure from his Labour Party to hand over the reins of power.
If he does, Starmer will be the sixth prime minister in a decade to stand outside 10 Downing Street and announce a premature departure.
Starmer spent the weekend pondering his future following the victory of intraparty rival Andy Burnham in a special election for a seat in Parliament. Burnham, until last week the Labour mayor of Greater Manchester, ran with the aim of challenging Starmer for leadership of the party and the country.
Burnham is due to be sworn in as a member of Parliament on Monday.
Britain's Prime Minister Keir Starmer hugs his wife Victoria after he announced his resignation outside 10 Downing Street in London, Monday, June 22, 2026.AP Photo/Thomas Krych)
Britain's Prime Minister Keir Starmer and wife Victoria stand in front of 10 Downing Street door after after announcing his resignation in London, Monday, June 22, 2026.(AP Photo/Thomas Krych)
FILE - Labour party's Andy Burnham speaks after winning the Makerfield by-election, paving the way for a leadership challenge against Prime Minister Sir Keir Starmer. in Wigan, England, Friday, June 19, 2026.(AP Photo/Jon Super, file)
Britain's Prime Minister Keir Starmer and wife Victoria step out to speak to the media outside 10 Downing Street in London, Monday, June 22, 2026.(AP Photo/Kin Cheung)
Larry the cat, Chief Mouser to the Cabinet Office waits on the doorstep of 10 Downing Street in London, Monday, June 22, 2026 as expectations are growing that Britain's Prime Minister Keir Starmer will announce his resignation soon.(AP Photo/Kin Cheung)
Britain's Labour Party leadership candidate Wes Streeting speaks in central London, Tuesday June 16, 2026. (Gareth Fuller/PA via AP)
Labour party's Andy Burnham speaks after winning the Makerfield by-election, paving the way for a leadership challenge against Prime Minister Sir Keir Starmer. in Wigan, England, Friday, June 19, 2026.(AP Photo/Jon Super)
Britain's Prime Minister Keir Starmer gestures as he speaks with local residents as he visits a housing development in north London, Friday, June 19, 2026. (Peter Macdiarmid/Pool Photo via AP)
