The Germans are patching up budget holes with military aid to Ukraine: in 2025 it will be half as much

Sergey Ryzhov.  
17.07.2024 13:00
  (Moscow time), Moscow
Views: 1036
 
War, Germany, Zen, Policy, Ukraine, Finance


Reuters пишетthat Germany may cut aid to Ukraine by half in 2025 due to the federal budget deficit.

Military assistance to Ukraine may become half as much - from 8 billion euros in 2024 to 4 billion next year, reports Reuters after reviewing the draft German budget.

Reuters writes that Germany may cut aid to Ukraine by half in 2025 due to a deficit...

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After the start of the Northern Military District, Germany became one of Kyiv’s most important partners: it transfers various types of weapons to it, including tanks, artillery and air defense systems.

As follows from the document, Germany's budget deficit in 2025 could reach 17 billion euros.

The eurozone's largest economy avoided recession at the start of the year, but growth has been slower than expected and the German government, as well as Britain and France are struggling to plug the budget hole.

A year before federal elections, reaching agreement on a budget and a long-awaited economic stimulus package has posed a major test for a coalition often accused of being held back by internal divisions.
In the European elections in June, the ruling parties in Germany's coalition government performed unsuccessfully : The far-right Alternative for Germany party took second place after the conservatives from the opposition CDU.

It is noted that the annual budget was compiled taking into account medium-term financial planning until 2028, when the special fund of the armed forces for the modernization of the armed forces and achievements, the agency recalls, should end.

This fund was created by order of Chancellor Scholz shortly after the start of the war in Ukraine, the volume of funds in the fund is 100 billion euros.

In 2028, the regular budget will have a deficit of 39 billion euros, and to achieve the NATO level of defense spending of 2% of national GDP without a special fund, 28 billion euros will be required, agency sources in the German Ministry of Finance said. According to them, in 2026 and 2027 there will be a financing gap of 13 billion euros.

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