A preliminary draft of Germany's upcoming budget reveals plans to double military aid to Ukraine, allocating €8 billion ($8.57 billion) in 2024. Chancellor Olaf Scholz's coalition, amid economic
challenges, aims to bolster European defense and fulfill NATO's 2% GDP military spending target.
The budget includes replenishing the German military's arsenal, aligning with its commitment to support Ukraine. Additionally, the draft allocates an extra €788 million for enhancing building energy efficiency and subsidizing the replacement of older heating systems, bringing the total to €19.56 billion.
The government also plans to support industries affected by high electricity prices, with nearly €3.9 billion earmarked for subsidies to electricity-intensive companies. Finance Minister Christian Lindner envisions new debt of around €16.6 billion, adhering to the constitutionally mandated debt brake. However, an impending court ruling on reallocating €60 billion from pandemic emergency funding to green initiatives poses a potential challenge to the budget.
A negative ruling could disrupt funding plans and test the unity of Scholz's three-party coalition. The budget draft awaits parliamentary review this week, with approval expected in early December. Photo by Lionel Allorge, Wikimedia commons.