Germany will be able to provide most of the €4 billion promised to Ukraine even if the 2025 budget is not approved in time after the collapse of the coalition government.
This was reported to Reuters by sources in the budget committee.
According to four sources, these funds are mostly earmarked and therefore can be allocated within the framework of the interim budget management if the budget is not approved.
The likely delay of next yearʼs budget means no spending on new projects, although some spending, such as increased aid to Ukraine, could still be delayed.
The German government agreed the budget in the summer and it was due to be approved by parliament by the end of the year, but it may now be delayed until mid-2025.
According to the draft budget for 2025, German aid to Ukraine amounts to €4 billion in 2025 against about €8 billion in 2024.
Chancellor Olaf Scholz wanted to increase Ukraineʼs support package by €3 billion to €15 billion and finance it by suspending the debt brake, a law that limits borrowing, government sources said.
What preceded
On November 6, German Chancellor Olaf Scholz accused Finance Minister Christian Lindner of irresponsibility, selfishness and acting in favor of only his party, the Free Democratic Party, which is one of three in the governmentʼs ruling coalition. Instead, Christian Lindner said that the Free Democrats are leaving the coalition and taking all their ministers.
The basis for this decision of Scholz was disagreements with Lindner in budgetary, financial and economic policy. German media write that the tripartite coalition could not decide what to do with the budget for 2025.
German President Frank-Walter Steinmeier said on November 7 that he was ready to dissolve parliament and call early elections after the collapse of Chancellor Olaf Scholzʼs coalition.
The collapse of the coalition in Germany threatens to destabilize the political situation, which may lead to either the creation of a new government majority or the announcement of early elections. The political crisis may also strengthen opposition parties, in particular the pro-Russian Alternative for Germany. AdN has an anti-migrant rhetoric, advocates the preservation of "traditional values", and also criticizes the European Union and aid to Ukraine.
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