Politics

Germany to limit military aid to Ukraine due to budget cuts

Boris Pistorius, German Minister of Defence, and Christian Lindner, German Minister of Finance Photo by Florian Gaertner/Photothek via Getty Images
Boris Pistorius, German Minister of Defence, and Christian Lindner, German Minister of Finance Photo by Florian Gaertner/Photothek via Getty Images
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Germany is forced to scale back military aid to Ukraine due to budget constraints, as recent spending cuts by the chancellery and finance ministry have left no room for additional funding.

The decision to limit military assistance has been attributed to budget cuts mandated by the chancellery and the finance ministry. According to a report from the Frankfurter Allgemeine Zeitung (FAZ) portal, additional requests for military aid from the defense ministry, as recommended by Chancellor Olaf Scholz, are to be turned down.

The FAZ article cites a letter from Finance Minister Christian Lindner to Defense Minister Boris Pistorius, dated August 5, outlining the restrictions on military aid. The report further says that the planned military aid for Ukraine is likely to decrease significantly in the coming years, with a projected drop to less than a tenth of the current amount by 2027.

While Lindner’s letter says that the finance ministry does not anticipate a sudden cessation of aid to Ukraine, it is anticipated that the funds will be sourced from frozen Russian assets rather than the German budget. However, the utilization of Russian assets for this purpose is described as “uncertain and legally controversial” by the FAZ journalists.

As a result of the budget constraints, certain procurements, such as the IRIS-T air defense system offered to Ukraine by Diehl Defence, have not been funded. The report emphasizes that the allocated funds for military aid to Ukraine for the current year have already been exhausted, and the spending cap for the following year has been exceeded.

The decision to limit military aid has sparked criticism from both within the ruling coalition and from opposition parties.

Conservative CDU MP Ingo Gaedechens has criticized Chancellor Scholz, accusing him of “hypocrisy” for pledging military support to Ukraine while promoting himself as a “chancellor of peace.”

Liberal SPD’s Andreas Schwarz has underscored the difficulties that the restriction on German aid poses for Ukraine, expressing concerns that it could be interpreted by Russian President Vladimir Putin as a withdrawal of support from Germany, potentially hindering peace efforts.

Germany must limit military aid to Ukraine due to a lack of new funds in the current and upcoming budgets. The reason for this is budget cuts imposed by the chancellery and the finance ministry, according to the FAZ (Frankfurter Allgemeine Zeitung) portal.

"Most of the previously approved equipment will be delivered, but additional requests from the defense ministry, as recommended by Chancellor Olaf Scholz, are to be rejected," wrote Peter Carstens and Konrad Schuller in an article published on Saturday in the online edition of *FAZ*.

The authors cite a letter from Finance Minister Christian Lindner sent on August 5 to Defense Minister Boris Pistorius.

The restrictions are already in place. Next year, the situation for Ukraine will worsen further, as planned military aid is expected to be nearly halved, and by 2027, it will drop to less than a tenth of the current amount, according to *FAZ*.

Lindner's letter indicates that the finance ministry does not foresee a sudden halt in aid to Ukraine. However, the funds are expected to come not from the German budget, but from frozen assets of Russian banks. The authors remind us that Russian assets are estimated at $300 billion. According to the G-7 countries' decision, interest from this amount is to fund a $50 billion loan for Ukraine.

*FAZ* journalists noted that the use of Russian assets is "uncertain and legally controversial." "It is more than doubtful whether Russian funds can be used in the future," write Carstens and Schuller.

The effects of the ban on new spending are already evident. Funds could not be found to finance the purchase of the IRIS-T air defense system, which the manufacturer, Diehl Defence, had offered to Ukraine.

The report explains that all funds (around €8 billion) allocated this year for military aid to Ukraine have already been planned, and the spending cap for next year (€4 billion) has also been exceeded.

According to *FAZ*, there is criticism of the government’s decision both within the ruling coalition and among the opposition CDU and CSU parties. CDU MP Ingo Gaedechens accused the chancellor of "hypocrisy," saying Scholz promises military support to Ukraine while wanting to be the "chancellor of peace."

SPD MP Andreas Schwarz highlighted that limiting German aid puts Ukraine in a difficult situation. Russian President Vladimir Putin may see this as a signal that Germany is withdrawing its support for Ukraine, making it harder to achieve a diplomatic resolution. "If Ukraine loses the war, up to 15 million refugees could leave the country. How many of them will come to Germany?" asks Schwarz.
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