German officials have dismissed concerns that budget limitations could impact the country’s weapons deliveries to Ukraine, the second-largest supplier after the United States. The government anticipates using a $50 billion international loan package funded by profits from frozen Russian assets to alleviate some of the financial pressure of providing military assistance to Kyiv starting next year.
Reports over the weekend claiming that aid funding might be affected by Germany’s domestic budget constraints faced criticism within the governing coalition. Chancellor Olaf Scholz’s administration has faced challenges balancing the competing priorities of the three parties in the coalition and adhering to Germany’s strict rules on debt accumulation.
The current budget for this year allocates nearly 7.5 billion euros ($8.3 billion) for military aid to Ukraine, with next year’s plan set at 4 billion euros, a figure that could rise during parliamentary budget discussions. The government aims for the G7-backed loan package for Ukraine to increasingly contribute to funding aid, allowing Kyiv to directly purchase weapons using interest obtained from frozen Russian assets as collateral.
German government spokesperson Wolfgang Büchner expressed confidence that the funding system would be established by the end of the year. He emphasized that Germany has planned significant support for Ukraine, with expectations that such support will decrease in the following years as profits from seized Russian assets become available.
Büchner stressed the government’s ongoing commitment to supporting Ukraine for as long as necessary, with no intention to relent, especially concerning Russian aggression. Finance Minister Christian Lindner’s letter to the defense and foreign ministers, as reported by German news agency dpa, outlined the requirement for secure financing in the budget to implement additional aid measures for Ukraine.
Despite these budget considerations, Defense Ministry spokesperson Arne Collatz indicated that pragmatic solutions would be sought for any immediate needs that may arise, with the Finance Ministry willing to assess extra requirements. Collatz and Büchner dismissed concerns about the delivery of pledged IRIS-T air defense systems, highlighting their commitment to fulfilling commitments to Ukraine.