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The German federal government’s current budget planning does not provide for the allocation of new funds to support Ukraine, and the opposition is talking about freezing financial and, consequently, military support for Kyiv.
Source: European Pravda; article by the Frankfurter Allgemeine Sonntagszeitung (FAS)
Details: At Chancellor Olaf Scholz’s request, additional applications from the German Ministry of Defence for military aid to Ukraine will no longer be approved, although the already approved materials continue to be delivered in most cases.
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The reason for this is the austerity measures taken by the Chancellery and the Ministry of Finance. Finance Minister Christian Lindner conveyed the request in a letter to Defence Minister Boris Pistorius on 5 August.
FAS notes that the ban is already in place, and Ukraine’s situation may also soon worsen, as planned military support is to be cut almost in half next year and then reduced to less than a tenth of the current amount in 2027.
However, things look different from the Ministry of Finance’s perspective. Christian Lindner’s letter of 5 August, which FAS has in its possession, shows that he does not expect a sudden reduction in funds for Ukraine. However, the money will now come not from the federal budget but from the frozen assets of the Russian central bank.
Ukraine’s allies confiscated about US$300 billion after the massive Russian missile attack, and the G7 countries decided at their summit in Italy to use the proceeds to finance a US$50 billion loan for Kyiv. Lindner now expects Ukraine to use the money to “cover a large part of its military needs”.
If this were to happen, German money would not be needed for some time. However, the G7 decision is far from being implemented and is legally controversial. International negotiations are ongoing, and no one in any of the federal agencies FAS spoke to knows how long it will take before the money finally arrives.
One source in the German government said that a point has been reached beyond which Germany can no longer make any more promises to Ukraine. This would fulfil the pre-election demand of the Alternative for Germany, the party of Putin’s friend Sahra Wagenknecht and Michael Kretschmer, Deputy Leader of the Christian Democratic Union, to stop supporting Ukraine with weapons as soon as possible.
The Bundestag’s Budget Committee also confirms this: “No new orders are placed for Ukraine because they are no longer funded”. Ingo Gädechens, a budgetary politician from the opposition Christian Democratic Union, agrees: “Olaf Scholz and his coalition are freezing financial and therefore military support for Ukraine from day to day.”
FAS’s observations in the contact zone illustrate the impact of Germany’s continued lack of support. Some German guns on the front line have so few spare parts and ammunition that they can only fire three or four rounds a day. The high rate of fire of the Panzerhaubitze 2000, one of its greatest strengths, cannot be used. Due to the lack of special ammunition, it cannot develop its long range. Some howitzers or the Leopard 1A5 main battle tank are repeatedly dismantled for parts to keep others operational, as spare parts are also lacking.
Several sources report the ban on additional funding for military aid to Ukraine has led to a “real debate” within the federal government. The Chancellery wants to suspend the funding, but the Ministry of Defence, the Ministry of Foreign Affairs and the Ministry of Economy disagree. There are different opinions on the role of the Ministry of Finance. Some say it is on the side of the Chancellor, while others argue that it is only indicating out of duty that there is no more money for new orders.
Background:
- It became known that the leaders of the German government coalition had reached a final compromise on the budget for 2025.
- The old and new drafts imply that military aid for Ukraine will be cut by about half, from €8 billion to €4 billion.
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