Business news from Ukraine

Business news from Ukraine

Scholz wants to finance Ukraine bln only through debt

16 January , 2025  

Federal Chancellor Olaf Scholz (SPD) only wants to approve additional arms deliveries to Ukraine for three billion euros before the federal election even if they are financed by suspending the debt brake. The help is only possible via a separate borrowing, “because otherwise the money is not there,” he said in an RTL interview.

Scholz had already made this proposal in the traffic light negotiations on the 2025 budget, where the coalition was ultimately broken. “I would decide even now that if everyone joins in a decision: we finance it extra through loans.” But then “some would have to jump over their shadow,” said the chancellor. Anyone who does not want to say where the missing means should come from. Scholz estimated the hole in the not yet adopted budget at 26 billion euros by 2025.

In an interview with the “Westphalian News” and the “Westphalia leaf” specified Scholz, even if you asquire that everything money is not spent in the course of the year, there is probably a gap in cover of at least 16 billion euros. “If we want to decide on another three billion euros for bilateral arms aid for Ukraine, it would be an uncovered check.”

The FDP head and former finance minister Christian Lindner excludes a suspension of the debt brake. He wants to finance aid for Ukraine and the Greens through a “unscheduled edition”. However, according to Article 112 of the Basic Law, this would only be possible under certain conditions. “It may only be granted in the event of an unforeseen and irreplaintated need.” An example of such an issue was instant aid for flood victims in 2013 after severe flooding in parts of Germany.

Source: https://www.zeit.de/news/2025-01/15/scholz-will-ukraine-milliarden-nur-ueber-schulden-finanzieren