Germany may have to cut billions to Ukraine as budget crisis rages

German Chancellor Olaf Scholz attends a debate about Germany's budget crisis at the parliament Bundestag in Berlin, Germany, Tuesday, Nov. 28, 2023. With its economy already struggling, Germany now is wrestling to find a way out of a budget crisis after a court struck down billions in funding for clean energy projects and help for people facing high energy bills because of Russia's war in Ukraine. (AP Photo/Markus Schreiber)
By Dénes Albert
2 Min Read

According to a leaked document, Germany wants to reduce its contribution to the €20 billion in EU funds for Ukraine, which could spell serious trouble for Kyiv’s fight against Russia’s armed forces.

The German budget is under pressure after the Scholz government unconstitutionally sought to reallocate coronavirus funds to keep its election promises related to green energy, business daily Világgazdaság reports.

There are growing voices that Chancellor Olaf Scholz’s coalition is on the verge of collapse. The German budget crisis could have a drastic impact not only on energy costs but also on electric cars.

The Germans believe that the EU’s arms fund for Ukraine via the European Peace Facility (EPF) should take into account the billions of euros in military assistance that Germany is providing to Kyiv bilaterally.

According to the document, the Berlin proposal states that the aid to Ukraine should include the direct supply of military equipment in addition to its financial contribution to the EPF.

According to the Ukraine support tracker page of the Kiel Institute for World Economy in Germany, the country has so far spent or committed €20.86 billion, or 1.54 percent of its GDP to aid for Ukraine. This consists primarily of €2.47 billion in humanitarian aid, €1.3 billion in direct financial support, and €17 billion in military equipment.

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