German government halves support for Ukraine in 2025

The German government has approved the draft budget for 2025, which includes a twice smaller amount of aid to Ukraine compared to that in 2024, after lengthy debate.

As reported by Spiegel, the German federal government has adopted the draft budget for 2025, which includes measures to stimulate the economy, and is submitting it to the Bundestag, the lower house of the German parliament.

Planned expenditures subject to the maximum expenditure threshold (debt brake)amount to €480.6 billion. However, new debts of more than €94 billion are still planned for 2024-2025. New loans in 2025 will amount to €43.8 billion.  

The Bundestag will start considering the draft in September and is expected to approve the supplementary budget for 2024 on 8 November and the budget for 2025 on 29 November. They may be amended until then.

The draft provides for an increase in defence spending by €1.3 billion – to more than €53 billion. This is less than what German Defence Minister Boris Pistorius initially wanted (he insisted on €6 billion), and there will likely be a heated debate in parliament about increasing the defence spending.

In addition to the defence budget itself, €22 billion from the debt-financed special fund is earmarked for upgrading equipment for the German military.

The military aid to Ukraine is to make up to €4 billion, compared to almost €8 billion in the 2024 budget. 

A few days ago, German Chancellor Olaf Scholz defended the coalition's compromise on the federal budget for 2025 despite criticism from the opposition.