Germany is set to make significant cuts in the funds allocated to strengthen partner states in security, defense, and stabilization, according to the draft of the country’s 2025 budget. The budget outlines a reduction from 7.5 billion euros allocated in 2024 to 4 billion euros in 2025 for support to partner countries. This decrease in financial assistance comes after years of substantial funding, including support for Ukraine following Russia’s attack on the country. The German government now anticipates that Ukraine will be able to fulfill a significant portion of its military needs through the $50 billion support package provided by the G7.
The draft budget emphasizes that Germany will continue to support Ukraine as long as necessary, working in collaboration with its allies. German Finance Minister Christian Lindner assured that Ukraine’s financing is secured for the foreseeable future, thanks to European instruments and G7 loans. However, concerns regarding the continuity of aid for Ukraine have arisen with the increasing likelihood of former President Donald Trump returning to the White House. Trump’s potential presidency raises doubts about the stability of U.S. aid for Ukraine, especially given his vice-presidential pick Sen. JD Vance’s firm opposition to providing additional assistance to the country.
Defense and Security Spending
The approved 2025 budget by the German cabinet includes a commitment to spending more than 2% of its gross domestic product on defense and security, in response to the ongoing conflict between Russia and Ukraine. This allocation is in line with the NATO requirement for member countries to dedicate at least 2% of their GDP to defense. Despite the significant increase in defense spending, German budget planning faced challenges the previous year when a ruling from the country’s constitutional court resulted in a 60-billion-euro funding gap in its spending plan. The court deemed the government’s plan to re-allocate unused emergency debt from the Covid-19 pandemic unconstitutional, leading to a restructuring of the financial strategy.
The draft budget will undergo scrutiny and debate in the German parliament, scheduled to take place after the summer break in September. This period will allow for in-depth discussions on the proposed budget changes before finalizing the financial plan for the upcoming year. The government’s commitment to ensuring adequate support for partner countries, especially Ukraine, will be a focal point of the parliamentary deliberations. Additionally, the evolving geopolitical landscape, including the potential return of Donald Trump to office, will likely influence the final decisions regarding financial aid and defense expenditures in Germany’s 2025 budget.