National governments have usually aimed at preserving a domestic defence industry which is able to self-sufficiently produce certain conventional weapons systems. This aim has come under increasing pressure stemming from the de-nationalization of defence production and a concurrent decrease in Western countries’ defence spending. Drawing on the case of Germany it is examined how this development has had an impact on national arms export policies. Since 2005 Germany – a traditionally restrictive supplier – has exported Leopard battle tanks to third countries outside EU and NATO, for which export licenses have been repeatedly denied in the past. The paper suggests that the official German explanation - stressing the role of security politics – is at most a supportive reason for the observed policy change. The actual trigger is identified in the worsened economic situation of the German weapons manufacturers resulting from the economic pressures outlined above.