Funds

Germany slashes Ukraine funding in savings push – POLITICO


“The aim is to make $50 billion available this year, Ukraine can then decide for itself how to use them,” he added, referring to a deal on Russian assets struck by world leaders last month.

The decision to cut aid to Ukraine, which was first reported by Reuters, resolves a mystery surrounding the German coalition’s unexpected agreement over the budget following an all-night bargaining session two weeks ago.

At the time, Chancellor Olaf Scholz, Lindner and Vice Chancellor Robert Habeck offered only vague explanations for how they had managed to bridge a substantial financing gap that threatened to bring down their alliance. The three partners were at odds over how to fund increases in social programs and climate initiatives without violating Germany’s debt rules.

That they waited until the last day of regular business before much of political Berlin leaves on summer holiday suggests they were well aware of the political sensitivity of the move, which will likely be seen in Kyiv as further evidence of Germany overpromising and underdelivering on assistance. Scholz’s government has dragged its feet on helping Ukraine since the beginning of Russia’s onslaught, drawing ridicule for an early offer to send helmets weeks before the full-scale invasion.

That said, Berlin has done more overall for Ukraine than any other European country. In addition to thousands of rounds of artillery shells and armored vehicles, the government has provided substantial help on air defense and other systems. Defense Minister Boris Pistorius has been pushing other countries to follow suit, especially on air defense.

Olaf Scholz’s government has dragged its feet on helping Ukraine since the beginning of Russia’s onslaught. | Ralf Hirschberger/Getty Images

Scholz has repeatedly touted Germany’s aid to Ukraine, and has pushed other European countries to do more, particularly as the reelection of Donald Trump in the U.S. looks increasingly likely and Europe faces the chilling prospect of needing to fund and arm Ukraine alone.





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