Bloomberg: Germany discusses creation of fund to strengthen defense and aid Ukraine

Germany is discussing the creation of a new fund to increase military spending and support Ukraine.

Bloomberg writes about this, citing sources.

According to the agencyʼs sources, future German Chancellor Friedrich Merz has begun negotiations with the Social Democrats to approve special defense spending of €200 billion as soon as possible.

This step should strengthen the countryʼs defense capabilities in the face of Russian aggression, the source said.

One idea being discussed in Germany is to create a special fund for new military spending and aid to Ukraine. Other options include expanding the existing €100 billion fund or adapting the so-called debt brake to allow for additional defense spending.

These measures are aimed at circumventing strict restrictions on government borrowing in Germany, which hinder the ability to allocate funds for the needs of the army.

However, any of these decisions would require a supermajority of two-thirds of the vote in parliament — a task complicated by political instability, when marginal parties block such initiatives.

What is the position of the future German Chancellor Friedrich Merz on Ukraine?

During the full-scale invasion, Merz visited Ukraine several times and met with Volodymyr Zelensky. He supports the provision of both humanitarian and military aid, but is not ready to talk about security guarantees or German peacekeepers. The main difference from the current government is that Merz wants to allow the supply of Taurus cruise missiles to Ukraine.

Merz emphasizes that Ukraine should be allowed to strike targets on Russian territory with German weapons, because now “we are allowing Ukraine to fight with one hand tied behind its back”. According to him, Ukraine has the prospect of becoming an EU member, and its path to NATO is “irreversible”. As for the US, Merz promises tougher relations with the new administration. He especially wants to complain to Trump about Elon Musk, who publicly supported the Alternative for Germany.

“That’s why everyone is paying attention to Germany right now. How quickly will the Germans be able to form a government after such a difficult election result? For me, this is really a priority right now,” he wrote on election day in Germany, February 23.

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