Federal government officials plan to introduce a supplement budget in order to deal with the consequences of Ukraine conflict
According to the draft budget, Germany will increase its defense spending by a record amount in response to Russia’s attack on Ukraine.
Christian Lindner, the country’s finance minister, is expected to present to the cabinet the budget for 2022/23 on Wednesday. The parliament will then scrutinize the document in the coming days.
According to the AFP, Germany’s draft budget earmarks more than 50 billion euros for military spending in 2022, which, according to the news agency’s government source, is a “The highest ever.”
Lindner stated that the ongoing conflict in Ukraine would have serious consequences on Germany’s economy and required additional measures. Therefore, Lindner addressed reporters in Berlin.
“In the coming weeks we will submit to the Bundestag a supplement budget.” Lindner said.
In the aftermath of Russia’s military actions, the federal government has taken other measures. In a previous announcement, Chancellor Olaf Scholz stated that 100 billion euro would be used to modernize Germany’s military forces over the next few years.
Fund financing will come from state debt growth. The core budget for 2022 envisages net new borrowing of 99.7 million euros and additional credit authorizations.
Germany’s low profile military has seen a major change with the recent decision regarding the modernization of its armed forces. On Monday, media reports said that Berlin would replace its Tornado fighter fleet with F-35 stealth planes.
Many were shocked to hear that Ukraine had been given weapons in response to Moscow’s offensive. Berlin has always refused weapons for eastern European nations.
Moscow attacked its neighbour in February after a seven year standoff due to Ukraine’s failures to comply with the Minsk Agreements and Russia’s recognition of Donbass republics at Lugansk and Donetsk. Protocols were established to normalize those areas within Ukraine’s state, and they were brokered by France and Germany.
Russia now demands that Ukraine declare itself neutral and vows to not join NATO’s military bloc. Kiev maintains that Russia’s offensive was not provoked and denies claims that it planned to seize the two republics.
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