German Defence Minister Admits Budget Shortfall

Mon Jul 08 2024
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BERLIN, Germany: German Defence Minister Boris Pistorius announced on Monday that his ministry received significantly less funding for the 2025 budget than anticipated, falling short of the 6.7 billion euros ($7.25 billion) he had sought to boost annual defence spending.

Local media, including Bild newspaper, reported the ministry would receive an additional 1.2 billion euros, but government and ministerial spokespeople declined to confirm these figures.

Pistorius described the shortfall as “annoying” and acknowledged the need to “adapt to it and make the best of it.” He expressed concerns that the limited budget would impede the implementation of necessary initiatives aligned with “Zeitenwende,” the major policy shift announced by German Chancellor Olaf Scholz following Russia’s invasion of Ukraine in February 2022.

This policy shift included a 100-billion-euro special fund intended to modernize and enhance Germany’s military capabilities.

Despite the budget constraints, Germany’s coalition government committed to maintaining defence spending above the NATO target of 2% of GDP. To achieve this, the government agreed on an additional 30 billion euros in 2028, ensuring the target is met even after the special fund is depleted. The mid-term financial planning outlined on Friday projects a total defence budget of 80 billion euros in 2028, the highest in Germany’s history, according to Pistorius.

Germany’s military leaders have emphasized the urgency of securing additional funds to ensure the armed forces are combat-ready within the next five years. They anticipate that by this time, Russia may be capable of launching an attack on NATO member-state territories. Economy Minister Robert Habeck, who also serves as Germany’s vice chancellor, echoed these concerns, stating that “the financial conditions do not suit Germany’s security situation.”

As the German government navigates these budgetary challenges, the need for robust defence spending remains a critical priority in the face of evolving geopolitical threats and commitments to NATO allies.

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