Berlin Delays Allocation of Additional Funds for Ukraine Assistance
The German government isn't providing extra financial aid to Ukraine, as reported by "Frankfurter Allgemeine Sonntagszeitung" (FAS). The current budget plans don't have enough funds for this purpose, and additional requests from the Ministry of Defense aren't being approved due to austerity measures from the Chancellery and the Ministry of Finance.
Documents, emails, and conversations in various government houses and Parliament reveal that Finance Minister Christian Lindner suggested in a letter to Defense Minister Boris Pistorius on August 5 that only new measures can be approved when funding is secured in the budget plans for the near future. This is to ensure that the budget limits are not exceeded.
Almost 8 billion euros have been set aside for Ukraine this year, and the proposed limit for the next year is 4 billion euros, which seems to be oversubscribed already, according to sources. "End of the event. The pot is empty," an insider in the Federal Government is quoted as saying.
Undelivered IRIS-T System
The Bundestag's House of Representatives confirms that no new orders are being placed for Ukraine since they're no longer funded, as mentioned by FAS. SPD budget expert responsible for defense policy, Andreas Schwarz, stated that the IRIS-T air defense system, which is ready for delivery, won't be sent to Ukraine against the wishes of Defense Minister Pistorius.
The delay is reportedly affecting other orders as well, such as artillery ammunition, drones, and spare parts for tanks and howitzers, even though the German arms industry could deliver them.
Government Disagreement
The immediate payment stop has apparently led to a heated disagreement within the Federal Government, according to the report. The Chancellery of Olaf Scholz seems to be against providing funds, while the Ministry of Defense, led by SPD colleague Pistorius, the Federal Foreign Office, and the Ministry of Economics are not in agreement.
The role of the Ministry of Finance, headed by FDP boss Lindner, is subject to different interpretations. Some say the Ministry is on the side of the Chancellor, while others argue that it simply points out that there's no more money for new orders.
Political Shifts
If Scholz is indeed behind the payment stop, he would be fulfilling demands from the AfD, the Wagenknecht party, and the Saxon CDU chairman Michael Kretschmer, who want an end to military support for Ukraine.
However, the Federal Ministry of Finance is not expected to halt Ukraine aid, according to a letter from Lindner to Pistorius. The money will no longer come from the federal budget but from Russian central bank assets seized by Western states at the start of the war - around 150 billion euros in Europe alone. The German government is reportedly working with G7 states and the EU to open a short-term financing instrument for Ukraine worth $50 billion.
The sudden payment stop has garnered criticism from the CDU and within the coalition ranks. CDU parliamentary group leader Gaedechens stated that Scholz and the coalition are showing "unprecedented hypocrisy" regarding Ukraine. The Chancellor promises to "militarily support Ukraine as much as necessary," but also wants to be a "peace chancellor." Even within his own ranks, Scholz's actions are causing confusion. The failure of American funds in the previous winter and spring had already caused significant damage to Ukraine, criticizes SPD budget expert Schwarz. If Germany, the second-largest donor, now holds back, that's tough for Ukraine.
I'm not going to sugarcoat it, the payment stop towards Ukraine has caused a significant rift within the Federal Government.
Regarding the Iris-T air defense system, it's unfortunate that we're not going to lie, we can't send it to Ukraine at this moment due to financial constraints.
