NewsBerlin slashes Ukraine aid as budget cuts take effect

Berlin slashes Ukraine aid as budget cuts take effect

German Chancellor Olaf Scholz
German Chancellor Olaf Scholz
Images source: © PAP | PAP/EPA/CHRISTOPHER NEUNDORF
Adam Zygiel

21 August 2024 07:03

Germany is tightening its belt. This will also affect aid to Ukraine. Spending on supporting the country defending itself against Russia is expected to drop by almost half. However, Berlin assures that funds to Kyiv will continue to flow.

After a short period of a generous German budget, Berlin is returning to its almost traditional austerity policy. Drastic budget cuts will not spare Ukraine. Although this year aid spending for Kyiv is expected to be £6.5 billion, next year it will be only 3.5 billion pounds £3.5 billion.

This decision is the result of months of coalition discussions seeking savings. As "Rzeczpospolita" points out, only defence spending is expected to increase minimally.

"Rz" points out, however, that these actions may not only result from Finance Minister Christian Lindner's persistence but also Berlin's changing approach to the war in Ukraine. The newspaper recalls the words of the head of the SPD faction in the Bundestag, Rolf Mützenich, who spoke of "freezing the war in Ukraine." And although he was criticised for this even by party colleagues, many Social Democrats share this view.

Funds from frozen Russian capital will flow to Ukraine

The authorities, however, distance themselves from this approach. German Chancellor Olaf Scholz argues that the G7 decided to support Ukraine with a £43 billion loan, which would be repaid from interest on frozen Russian capital in Western banks.

"Germany is still fully committed to helping Ukraine, and the chancellor's word that support for Ukraine will continue as long as necessary is still valid. No one, especially the Russian president, should count on us withdrawing," said Deputy Government Spokesman Wolfgang Büchner in Berlin.

"The German government will provide Ukraine with the support it needs to successfully continue its fight for freedom, self-determination, and independence," assured Foreign Ministry Spokesman Sebastian Fischer.

This year, Germany intends to supply Ukraine with four IRIS air defence systems, ten Gepard tanks, sixteen howitzers, ten Leopard tanks, as well as drones and ammunition. On German territory, 10,000 Ukrainian soldiers are being trained.

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