Germany to Halve Military Aid to Ukraine in 2025

Germany intends to halve its military assistance to Ukraine in 2025, according to Reuters. The German Cabinet plans to approve the 2025 budget after months of debate, aiming to bridge a €17 billion gap between projected expenditures and revenues amidst slower-than-expected economic growth.

The upcoming budget reflects a reduced commitment towards Ukraine, cutting military aid to €4 billion from approximately €8 billion in 2024, as outlined in the budget draft seen by Reuters. It includes medium-term financial planning through 2028, coinciding with the conclusion of NATO’s special armed forces fund aimed at achieving defense spending goals.

Following Russia’s 2022 invasion of Ukraine, Chancellor Olaf Scholz announced a significant €100 billion fund for military modernization, signaling a strategic shift. The fiscal blueprint for 2025, navigated amidst coalition challenges, emphasizes fiscal consolidation post-COVID-19 pandemic and recent energy crises.

Christian Lindner, Germany’s Finance Minister, underscored compliance with EU fiscal rules ahead of federal elections, stressing the coalition’s commitment to economic stability. The budget negotiations and awaited economic stimulus package serve as critical tests for the coalition amidst internal tensions and recent electoral setbacks.

The defense minister’s call for additional funding underscores Germany’s recalibration of priorities amidst fiscal constraints, impacting international aid commitments, including those to Ukraine.