Germany has announced its plans to significantly reduce funds dedicated to strengthening partner states in the areas of security, defense, and stabilization. According to a draft of the country’s 2025 budget, the money allocated to support partner countries will be slashed to 4 billion euros in 2025, down from the 7.5 billion euros allocated in 2024. This marks a considerable decrease from the 5.4 billion euros that had been allocated to the fund in 2023.
In recent years, a significant portion of the German budget in this category has been earmarked for supporting Ukraine following Russia’s attack on the country. However, the German government now expects Ukraine to be able to cover a significant part of its military needs with the $50 billion support package agreed upon last month by the G7 countries. Despite the reduction in funding, Germany has emphasized its commitment to supporting Ukraine in collaboration with its allies for as long as necessary.
There is growing uncertainty about the future of aid for Ukraine, particularly with the increasing likelihood of former President Donald Trump returning to the White House. Trump and his vice-presidential pick, Sen. JD Vance, have both expressed strong opposition to providing further aid to Ukraine. This has raised concerns about the potential impact on U.S. assistance to the country if Trump were to be re-elected.
Germany’s spending plan, which includes the reduction in funding for partner states, was approved by the cabinet after tense negotiations. German Chancellor Olaf Scholz has identified defense as a cornerstone of the budget, with plans to spend more than 2% of the country’s gross domestic product on defense and security. This increase in spending is a response to the ongoing conflict between Russia and Ukraine, in line with NATO’s requirement for member countries to allocate at least 2% of their GDP to defense.
The German government faced obstacles in budget planning last year when a decision from the constitutional court resulted in a 60-billion-euro funding gap across several years of its spending plan. Originally, the government intended to re-allocate unused emergency debt taken on during the Covid-19 pandemic to its future spending, but this plan was deemed unconstitutional by the court. The German parliament is set to debate the draft budget upon its return from summer break in September before finalizing it later in the year.
Germany’s decision to cut funding for partner states in security, defense, and stabilization, including Ukraine, reflects a shift in priorities and challenges in budget planning. Despite the reduction in funds, Germany remains committed to supporting Ukraine and ensuring its security needs are met. The uncertainty surrounding future aid for Ukraine adds another layer of complexity to the situation, particularly in light of potential changes in U.S. leadership. As Germany navigates these challenges, it will be crucial to reassess its budget allocations and strategic partnerships to address evolving security threats effectively.
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