"Traffic light" has no money

Shock for Ukraine: Scholz no longer wants to pay

Scholz (right) has repeatedly hit the brakes verbally in recent months - to the chagrin of Selenskyj.

(Bild: AFP/John MACDOUGALL)

That would be a hard blow for Kiev: according to a media report, Germany does not want to provide any new aid payments for Ukraine. This request comes directly from the Chancellery of Olaf Scholz, who is currently fearing for his re-election. 

According to the "Frankfurter Allgemeine Sonntagszeitung" ("FAS"), no new money is available for Ukrainian aid payments under the current budget planning - with immediate effect. Although material that has already been approved will usually still be delivered, additional applications from the Ministry of Defense will no longer be approved at the request of Chancellor Scholz.

As the "FAS" learned from documents and emails as well as after discussions in several houses of the German government and in parliament, Finance Minister Christian Lindner (FDP) had passed on a corresponding request in a letter to Defense Minister Boris Pistorius (SPD) on 5 August.

Scholz (right) has repeatedly hit the brakes verbally in recent months - much to Selenskyj's chagrin.

(Bild: AFP/John MACDOUGALL)

Budget apparently overstretched
According to the letter, "new measures" may only be taken if "funding is secured" in the budgets for this and the coming years. The aim is to ensure "that the ceilings are adhered to".

In absolute figures, Germany has so far transferred the most money to Ukraine in Europe: 

For the current year, the funds for Ukraine amounting to around eight billion euros have already been budgeted. The planned maximum limit for next year is four billion euros and is apparently already overbooked. In subsequent years, these "ceilings" will continue to fall drastically, reports the newspaper.

CDU criticizes Scholz plan
According to the "FAS", confirmation of this came from the budget committee of the German Bundestag. Andreas Schwarz, the SPD budget expert responsible for defense policy, told the newspaper that "no new orders are being placed for Ukraine at the moment because they are no longer financed".

CDU budget politician Ingo Gädechens also confirmed the restriction of aid to Ukraine: "From one day to the next, Olaf Scholz and his 'traffic light' have frozen financial and therefore military support for Ukraine."

CDU security expert Norbert Röttgen said: "The 'traffic light' is doing politics in the style of Donald Trump by stopping further aid to Ukraine as a result of domestic political disputes." The difference is that supporting Ukraine also means "financing its own security".

Ministry of Finance shifts responsibility to Scholz
The German Ministry of Defense and the Ministry of Finance (BMF) initially refused to comment on the media report. However, BMF circles said on Friday evening that "all decisions regarding support for Ukraine are made in close coordination with the Federal Chancellery".

At the beginning of July, Scholz made additional Patriot systems available to Ukraine. The German Chancellor promised: "Germany will stand by Ukraine - for as long as it is necessary."

Now it is said that the German government is working "in the circle of the G7 states and the EU in particular to open up a financing instrument of 50 billion dollars for Ukraine in the short term by using frozen Russian assets". "Bilateral German aid remains at the highest level, but relies on the effectiveness of this instrument", according to BMF circles.

Financial chaos of the "traffic light government"
Shortly before a self-imposed deadline expired, the leaders of the SPD, Greens and FDP agreed on changes to the draft federal budget for 2025. The "traffic light coalition" has imposed an extremely controversial austerity policy on itself. Some points of contention have now been resolved, but a financial gap of twelve billion euros remains. The hole must be plugged in accordance with the "debt brake", although it is not yet clear exactly where and how this is to be done.

Scholz and his SPD have repeatedly hit the brakes verbally on the issue of Ukraine in recent months. There was a lot of criticism, for example, for the statements made by parliamentary group leader Rolf Mützenich, who wanted to "freeze" the conflict in Ukraine. Scholz has also recently allowed himself to be stylized as a "peace chancellor" with little credibility.

Political observers see this as an attempt to intercept voters critical of Ukraine. The SPD is far behind in the polls. In an initial reaction to the announcement, experts accuse the "traffic light" of slowly bleeding Ukraine dry.