BERLIN, Nov 18 (Reuters) - The German government will

publish its new defence industry strategy, which aims to cut red

tape and accelerate arms production, by the end of the year

despite the collapse of the coalition, Defence Minister Boris

Pistorius said on Monday.

Germany, the largest backer of Ukraine in Europe, vowed to

upgrade its eroded Bundeswehr army and boost defence as part of

a "Zeitenwende" - or "turning point" - policy shift announced

shortly after Russia invaded Ukraine in February 2022.

"For too long, ... the state has seen itself more as a

regulator than as a partner to the defence industry," said

Pistorius at the ground-breaking ceremony of a new missile

production site for MBDA in Schrobenhausen.

"The task is to further strengthen our country's defence

industrial base in these times. Not only to maintain it, but to

strengthen it," Pistorius said.

"We therefore want to specifically improve the framework

conditions for an efficient security and defence industry."

The strategy could allow the government to take a stake in

arms-makers and defence projects in "strategic cases", and

contains recommendations including promoting key technologies

and improving the industry's financial framework, according to a

draft seen by Reuters.

Pistorius said at a separate event on Monday at Airbus

Helicopters' site in Donauwoerth, Germany, that the government

was still capable of taking action, despite the coalition

between the minister's Social Democrats (SPD), the Greens and

pro-market Free Democrats falling apart.

"We as the federal government will of course continue to

engage in intensive discussions with the security and defence

industry," added Pistorius.