Financial package deal between German democrats to pave way for EUR 3B in defense aid to Ukraine

This was reported by an Ukrinform correspondent.

“The chancellor said that, if there is ‘counter -financing’…, then nothing can stand in the way of such an agreement. Therefore, we have to wait and see if there will be counter-financing, and then it will be possible to proceed quickly,” government spokesman Steffen Hebestreit said on Friday, answering questions about the prospects of unblocking a EUR 3billion package in case an agreement is reached on lifting the debt limit.

As a clarifying question of whether a path to allocating assistance will be open in case the parties strike a deal on amending debt legislation, the spokesman said: “It would be my assumption.”

The Government briefing was held before Handelsblatt released a flash news piece saying the CDU/CSS conservative block and the Social Democrats, which were negotiating on forming the ruling coalition, seemed to have reached an agreement with the Greens on the financial package vote, which includes several expenditure items, including on defense. The decision that will require amendments to the Basic Law is set to pass next week, likely on Tuesday.

Chancellor Olaf Scholz, who is being criticized for blocking the package, was fundamentally not against giving Ukraine EUR 3 billion in additional defense assistance, but insisted that money cannot be taken from other budget items, suggesting that debts should be increased. At the EU summit last week, he voiced expectations that now it would be possible.

As reported earlier, German Defense Minister Boris Pistorius pledged additional billions in defense aid to Kyiv after meeting with Ukrainian counterpart Rustem Umerov. He then mentioned that, in addition to the already approved assistance package, financing in the amount of EUR 3 billion should be agreed soon.

The 2025 German budget slated EUR 4 billion in defense aid to Ukraine, while last year the amount was double that number.