Ampel taps into special funds for Bundeswehr reorders after all

The special fund of 100 billion euros is to be used to rearm the Bundeswehr and not to finance ongoing operations. However, the government is breaking with this principle. Replacements for equipment that went to Ukraine are also to be financed from the special fund. The CDU is outraged.

The German government now wants to finance replacements for weapons supplied to Ukraine next year from the special fund for the Bundeswehr. This is according to a paper from the Ministry of Finance, which lists the key points of next year's budget. It states that the expenditure for "reprocurement from refurbishment" will in future be borne by the special fund for the Bundeswehr. 520 million euros have been earmarked for this in the coming year. The decision is part of the budget agreement announced by Federal Chancellor Olaf Scholz, Finance Minister Christian Lindner and Economics Minister Robert Habeck on Wednesday.

However, the coalition had previously promised otherwise. "It has always been said: What you give away in weapons systems, you get back - and not from 'your own financial flesh', but from another pot," said CDU defense politician Ingo Gädechens. "Now, however, all systems are to be financed from the already hopelessly oversubscribed special fund for the Bundeswehr." In doing so, the Ampel had "broken a central promise to the Bundeswehr".

Gädechens had obtained confirmation from the federal government in the spring that the replacement procurements would not have to be paid for from the defense budget or the special fund. The parliamentary state secretary for defense, SPD politician Thomas Hitschler, informed him in writing as follows: "The financing of the replacement procurement of the surrendered material will take place in the 2023 financial year from funds in Section 60, the so-called "Ertüchtigungstitel". Then the decisive sentence: "Financing from the special assets of the Bundeswehr or Section 14 is not planned."

The original budget also provided for this

Individual plans are part of the budget and usually refer to the budget for a ministry. Section 14 lists the funds for the Ministry of Defense and thus the Bundeswehr. Section 60 is entitled "General financial administration" and serves as a collective pot for all income and expenditure "that cannot be allocated to an individual department", as stated in the now revised draft budget for the coming year. This includes, for example, coronavirus corporate aid or, as the largest item, a subsidy of almost ten billion euros to the civil servants' pension fund. But also funds for "strengthening partner states in the areas of security, defence and stabilization" - Ukraine is one such partner state. Four billion euros were originally earmarked for this, but this sum is to be doubled. As the replacement for the Bundeswehr is no longer financed via this pot, more money remains for Ukraine. This could be one reason for the reallocation.

In his reply to Gädechens, Hitschler explicitly referred to the year 2023, but the original draft for the 2024 budget also stated in the section on Section 60 that replacement procurements could be financed from this. Defense Minister Boris Pistorius had also made public statements in this direction. The defense expert Jana Puglierin posted a screenshot on X, according to which such a statement could still be read on the website of the Ministry of Defense on December 7.

Special funds actually intended for major projects

The decision to take the money for the reprocurement from the special fund is at the expense of the Bundeswehr. The 100 billion euros were actually intended to finance large, new armaments projects such as the procurement of the F35 fighter jet or larger naval vessels. However, if funds now flow away to procure replacements, the money will be lacking elsewhere.

According to Gädechen's statement, the Bundeswehr is already underfunded. For example, the Bundeswehr had ordered a light combat helicopter, but no ammunition because there was no money for it. CDU foreign affairs politician Roderich Kiesewetter commented on X: "The special fund is virtually being plundered. This is a great disappointment for our Bundeswehr. The turnaround announcement remains hot air. It is so bitter."