Germany plunges deep into debt yet pours billions of euros into Ukraine

The budget committee approved the loan, the outgoing foreign minister applauds, saying Berlin is showing the way for Europe.

Germany has decided on another €11 billion in support intended for Ukraine – writes Euractiv. Of the framework approved until 2029, Kyiv will receive €3 billion already this year, which it can use for military defence purposes. The 2.5 billion forint framework is supplemented by several programmes, for example the European Peace Facility.

“It was high time for the German parliament to finally decide on these funds. With this, Germany is showing the way for Europe in supporting Ukraine,” stated the departing German Foreign Minister Annalena Baerbock, who is preparing to go to the UN.

“The German weapons have already saved the lives of thousands of Ukrainians so far, and this number will grow further in the coming years,” reacted the Ukrainian Foreign Minister on his social media page. Andrii Sybiha added that a strong Ukrainian army will be the most important security factor in Ukraine and Europe in the coming years.

This statement is in line with the European Union’s endeavour that in the future Ukraine and the Ukrainian army, which has gained practice in the war, should protect Europe instead of the American military umbrella.

After the February election, but still with the old composition sitting, the German parliament, with the support of the CDU/CSU, the SPD and the Greens, also decided on a constitutional amendment, loosening the strict German budgetary rules. According to estimates, German public debt could exceed 70 percent of GDP if Berlin really takes out loans for the development of the army and military infrastructure.

Not only Germany, but Brussels is also considering taking out a significant loan amount, while the European Union barely deals with the pressing decisions on EU steps regarding economic competitiveness problems.

There is no word yet on exactly how much Berlin intends specifically for Kyiv from the €500 billion package – which exceeds 2.5 times Hungary’s entire 2024 GDP, or 200 thousand billion forints – to protect Europe “from the Russian threat”.

Moreover, on 27 March another meeting will be held by the states belonging to the so-called “coalition of the willing”, led by French President Emmanuel Macron, discussing how troops could be sent to Ukraine without the participation of the United States. US President Donald Trump has a different position from the British-French-led European coalition: Washington wants to achieve a ceasefire and peace between Russia and Ukraine, while the European countries are rather urging the continuation of the war.