Germany is facing a significant cut in the funds dedicated to supporting partner states in the areas of security, defense, and stabilization based on the draft of the country’s 2025 budget. The allocation for partner countries is set to decrease to 4 billion euros in 2025, a notable drop from the 7.5 billion euros allocated in 2024. This reduction marks a downward trend from the 5.4 billion euros allocated in 2023, as outlined in the budget blueprint.
Throughout past years, a substantial portion of the German budget section has been channeled towards supporting Ukraine after Russia’s attack on the country. However, the German government now anticipates that Ukraine will be able to fulfill a significant part of its military requirements from the $50 billion support package agreed upon by the G7 in the previous month. The assurance is that Ukraine’s financing is supported through European instruments and G7 loans, ensuring its security needs are met in the foreseeable future.
The current uncertainty revolving around future assistance for Ukraine stems from the potential return of former President Donald Trump to the White House. With rising prospects of a second Trump presidency, concerns have arisen regarding the continuity of U.S. aid for Ukraine as Trump and his possible vice-president candidate, Sen. JD Vance, express opposition to extending further aid to the country.
The recent approval of Germany’s spending plan for 2025 by the cabinet underscores defense as a central pillar of the budget. The government intends to surpass the 2% threshold of GDP spending on defense and security, prompted by the ongoing conflict between Russia and Ukraine. NATO guidelines mandate member countries to allot at least 2% of their GDP towards defense expenditures.
German budget planning encountered a setback the previous year when a ruling from the constitutional court highlighted a 60-billion-euro funding gap in the spending plan over multiple years. The court invalidated the government’s proposal to reallocate unused emergency debt from the Covid-19 pandemic for future expenditure. This decision forced a reevaluation of the budget framework.
The draft budget is slated for thorough deliberation in the German parliament upon its return from the summer hiatus in September. The legislators will engage in debates and discussions to finalize the budget later in the year, ensuring that all aspects are scrutinized before implementation.
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