Germany may approve EUR 3B in military aid for Ukraine next week – Merz

Speaking to journalists after consultations with the leadership of the Christian Social Union (CSU), the Social Democratic Party (SPD), and the Green Party, Merz discussed the broader financial package expected to be voted on next week, Ukrinform reports.

"We discussed the EUR 3 billion. There is already a Bundestag decision on this, following approval by the Budget Committee, which deemed it feasible. I assume that with the Bundesrat's approval, these funds could be allocated as extraordinary expenditures no later than next week," Merz said.

The politician said that Chancellor Olaf Scholz assured him and others that he is ready to release these funds once the special defense fund and expenditure decisions are finalized.

On Friday, parties engaged in coalition negotiations -- CDU/CSU, SPD, and the Greens -- agreed to vote next week on revising funding conditions for various sectors, including defense.

"In the field of defense, we agreed on the proposal that expenditures on defense, as well as government spending on civil protection and population security, intelligence services, information technology security, and aid to countries that have been attacked in violation of international law, will be exempt from the debt brake rule when they exceed 1% of the country's GDP," Merz said.

According to him, 1% of Germany’s GDP currently equals EUR 45 billion. Any additional spending beyond this amount in these five key sectors will not be subject to the "debt brake" rule, which limits new government borrowing.

The discussions also covered federal state funding and a special infrastructure development fund, with EUR 500 billion allocated in loans over the next 12 years.

"This sends a clear message to our partners and allies, as well as to our adversaries: from now on, Germany is fully prepared for defense. We will no longer lack the financial means to protect peace and freedom on our continent. This is particularly crucial as Europe and NATO face key decisions in the coming weeks. Germany is stepping up. Germany is making a major contribution to safeguarding freedom and peace in Europe," Merz said, expressing satisfaction with the negotiation results, despite acknowledging their difficulty.