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Scholz says Germany will continue to support Ukraine amid budget cuts concerns

2024-08-20

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Reference News reported on August 20German Chancellor Olaf Scholz assured on the same day that Germany "is and will remain Ukraine's main supporter in Europe", despite concerns about Germany's planned budget cuts in 2025, AFP reported in Berlin on August 19.

The German government, the second largest aid donor after the United States, has decided to halve the amount of bilateral military aid allocated to Kiev next year in order to save budget amid a power struggle among the three parties in the ruling coalition.

Several German media outlets said that under pressure from the Finance Ministry, the government ruled out the possibility of providing additional funds to Kiev beyond the grants, which sparked fierce criticism including from Chancellor Scholz's Social Democratic Party.

Berlin tried to give assurances, according to the report. Scholz said on the social platform X: "We continue to provide support: together with the G7 we will provide a 50 billion euro credit. This will enable Ukraine to obtain a large amount of weapons."

To make up for budget cuts, Berlin is reportedly hoping to provide Ukraine with a $50 billion loan secured by future interest generated by Russian assets.

German government deputy spokesman Wolfgang Büchner said on the 19th that the mechanism will be in place "by the end of 2024", but Kiev's allies have not yet given a firm timetable for its implementation.

Berlin's halving of bilateral military aid has added to uncertainty, while the U.S. presidential election could recalibrate international support for Ukraine.

Buechner said Germany would continue to be "Ukraine's biggest supporter in Europe" with plans to spend 4 billion euros next year after allocating 7.5 billion euros this year to provide Kiev with military equipment.

Amid concerns that the budget amounts for 2024 and 2025 will be insufficient, the German Finance Ministry previously said it was ready to "study the possibility of providing additional funds in the short term through special grants."

A German Foreign Ministry spokesman said on the 19th: "We will continue to ensure that Ukraine has the resources it needs to continue fighting." (Compiled by Lin Xiaoxuan)