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Due to budgetary constraints, Germany will not give Ukraine any fresh cash, as, according to the government, support should primarily be financed from interest on frozen Russian assets.
News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.
According to a letter that Lindner wrote to the foreign and defence ministries, “new measures” may only be taken if “funding is secured” in the budgetary plans, Frankfurter Allgemeine Zeitung reported first. [EPA-EFE/CLEMENS BILAN]
Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.
Languages: Français | Bulgarian
Due to budgetary constraints, Germany will not give Ukraine any fresh cash, as, according to the government, support should primarily be financed from interest on frozen Russian assets.
Germany is currently tightening its budget as liberal Finance Minister Christian Lindner tries to adhere to the constitutional debt brake that limits the amount of new debt the government can take.
While the current budget plan for 2025 envisions €4 billion in support for Ukraine, these assets have already been pledged, and no new money is in sight for future support.
According to a letter that Lindner wrote to the foreign and defence ministries, “new measures” may only be taken if “funding is secured” in the budgetary plans, Frankfurter Allgemeine Zeitung reported first.
On Sunday, the Finance Ministry slightly backpedalled, stating that despite the lack of funds, it would “examine the short-term provision of additional funds.”
However, Ukraine would have to justify its additional needs “in order to comply with all budgetary regulations and to be able to request authorisation from the German Bundestag on this basis”.
The largest opposition group in the Bundestag, conservative CDU/CSU, was quick to condemn the move. “Now Ukraine’s fight for freedom is also suffering due to the constant traffic light dispute,” deputy leader of the CDU/CSU parliamentary group, Johann Wadephul, told Redaktionsnetzwerk Deutschland (RND).
Instead of providing Ukraine with fresh money from the federal budget, the government aims to find other avenues to support the war-torn country, namely by using interest from frozen Russian assets. According to Lindner, Ukraine could thus cover a significant part of its military needs.
Ukraine’s allies have confiscated around $300 billion following the onset of the Russian war of aggression. The G7 countries decided at their last Summit in Italy to use the interest from the money to finance a $50 billion loan for Kyiv.
However, it is still unclear whether the instrument will work at all, as it is legally highly controversial and could set a negative precedent.
(Oliver Noyan | Euractiv.de)
Languages: Français | Bulgarian
Updated: 01-10-2024
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Germany won’t provide Ukraine with fresh money – Euractiv
