According to German Chancellor Olaf Scholz, Germany will continue to provide support to Ukraine at the expense of profits from the frozen assets of the Russian Federation.
Points of attention
- German Chancellor Olaf Scholz plans to support Ukraine with profits from frozen Russian assets despite budget constraints.
- The reduction in budget expenditures for aid to Ukraine may lead to a shortage of military equipment, including crucial arms packages.
- Internal political conflicts within the German government could impact the level of aid provided to Ukraine, posing risks to security and freedom in Europe.
- Critics argue that relying on profits from frozen Russian assets to cover aid funding deficits is uncertain and may not materialize as expected.
- Maintaining strong support for Ukraine is crucial for upholding security and freedom in Europe, emphasizing the importance of continued assistance from Germany.
Scholz relies on profits from the frozen assets of the Russian Federation to further support Ukraine
Meanwhile, Scholz neither confirmed nor denied the German federal government's plans to reduce budget expenditures for aid to Ukraine.
Germany is and remains the strongest supporter of Ukraine in Europe. And we continue our support: the €50 billion loan we are launching with the G7. This allows Ukraine to massively purchase weapons. She can develop it, - explained the Chancellor of Germany.
Deutschland ist und bleibt der stärkste Unterstützer der Ukraine in Europa. Und wir setzen die Unterstützung fort: mit einem 50-Milliarden-Euro-Kredit, den wir mit den G7 auf den Weg bringen.
— Bundeskanzler Olaf Scholz (@Bundeskanzler) August 19, 2024
Damit kann die Ukraine in großem Umfang Waffen beschaffen. Darauf kann sie bauen.
What is known about the consequences of Germany's reduction of budget expenditures for aid to Ukraine
According to the journalists of The Times, the Ministry of Finance of Germany is being accused of a covert refusal to further support Ukraine.
At the same time, the government of German Chancellor Olaf Scholz is proud of the fact that it remains the second largest donor of aid to Ukraine after the United States.
However, the supply of weapons to Ukraine became a tool in the struggle for power within the ruling coalition under the leadership of Scholz.
Currently, the Scholz government is trying to patch a hole in the country's budget of 12 billion euros.
30 arms packages for Ukraine, which are being prepared by the German defense ministry, are at risk of being blocked, including much-needed air defense missiles and spare parts for tanks and infantry fighting vehicles. Documents obtained by the German newspaper Bild indicate that Ukrainian forces are already experiencing a shortage of German weapons, including self-propelled artillery and guided missiles for Patriot systems. Although 4 billion euros were allocated for Ukraine's military needs for the next year, officials claim that they have already been used, the publication notes.
It is noted that the head of the German Finance Ministry, Christian Lindner, ordered other government officials to adhere to the "upper limit" of funding for future projects.
His letter to the ministers of defense and foreign affairs was sharply criticized by the entire political community.
Theoretically, the resulting deficit should be covered by 50 billion euros of "unexpected" profits from Russian assets that were frozen under Western sanctions.
But critics both inside and outside the coalition say it's a pipe dream, as it remains unclear when or if the money will ever materialize.
According to politicians from the ruling coalition, there are currently at least 3 reasons for limiting aid funding to Ukraine.
It is said that the first reason is fatigue from Russia's criminal war against Ukraine, which is most strongly observed in the eastern states of Saxony, Thuringia and Brandenburg, where key parties are forced to spend heavily in favor of radical fringes in the elections to be held next month.
The second reason, according to the publication, is that Lindner's Free Democratic Party has lost so much of its voter support that the party risks losing all seats in the German parliament in next year's elections.
The third factor is internal conflict within the Social Democratic Party, the largest force in the ruling coalition. The influence of the anti-militarist left wing of the party is growing.
At the same time, Chancellor Olaf Scholz considers the much more popular defense minister and party colleague Boris Pistorius as a key political competitor.
This means that he would be happy if Pistorius's wings were "clipped" with military spending restrictions.
The head of the Bundestag's foreign affairs committee and former SPD minister Michael Roth said that this measure looks like a "disguised retreat from responsibility for Ukraine."
It would be fatal if we gave the impression now that security and freedom will no longer mean anything to us in the future. We cannot sacrifice the fate of Ukraine to the debt brake. If Germany does not continue to act decisively in Europe, we will not be able to fulfill our responsibility for freedom and security on our continent, - emphasized Roth.
