German Chancellor Olaf Scholz has said he will only agree to additional arms deliveries to Ukraine amounting to €3 billion ($3.1 billion) before next month’s parliamentary election if they are financed by suspending the government’s strict rules on new debt.
The aid is only possible through separate borrowing, “because otherwise the money isn’t there,” he said in an interview with private broadcaster RTL.
Scholz had already made this proposal during the centre-left coalition negotiations on the 2025 budget, which ultimately led to the coalition’s collapse.
“I would also pass this now if everyone participates in a decision: We will finance this extra through loans.” However, he said, “some would need to go beyond their limits.”
Those who do not want this must explain where the missing funds should come from. Scholz estimated the gap in the yet-to-be-approved 2025 budget at €26 billion.
In an interview with the local newspapers Westfälische Nachrichten and Westfalen-Blatt, Scholz specified that even if one assumes that not all funds are typically spent over the year, there would still be a shortfall of at least €16 billion.
“If we now want to decide on a further €3 billion for bilateral arms aid for Ukraine, that would be an uncovered cheque,” the chancellor said.
The leader of the pro-business Free Deomcrats (FDP) and former finance minister Christian Lindner categorically rulesd out suspending the so-called debt brake. Like the Greens, he wanted to finance the aid for Ukraine through an “extraordinary expenditure.”
However, according to Article 112 of the Basic Law, this would only be possible under certain conditions. “It may only be granted in the case of an unforeseen and unavoidable requirement.” An example of such expenditure was the immediate aid for flood victims after severe floods in parts of Germany in 2013.
