German minister seeks debt-brake exemption to sustain Ukraine aid

German Minister Urges Debt-Brake Exemption to Maintain Funding for Ukraine Aid

Germany's Budget Constraints and Support for Ukraine

By Maria Martinez

Request for Debt-Brake Exemption

BANGKOK, Oct 17 (Reuters) - Germany's development minister is seeking an exemption from the country's debt brake, a constitutional limit on government borrowing, for Ukraine funding, arguing that much of Germany's civilian support for Ukraine comes from her ministry's budget.

Impact of Budget Cuts on Ukraine Aid

"The Russian attacks are more severe than ever, leading to more deaths, more destruction, more suffering. But as budget cuts for development assistance continue, we simply will not be able to maintain our support for Ukraine at this level," Reem Alabali Radovan told Reuters on Friday, on the sidelines of the International Monetary Fund and World Bank meetings.

Declining Funding Levels

Funding for Ukraine in her ministry's budget amounts to about €330 million ($371 million) this year, down from €670 million in 2022 and €750 million in 2023.

"At this point, it is not a political decision; we just face massive cuts and it will no longer be possible," Alabali Radovan said. "This is especially hard as the money is wisely invested in Ukraine's and Europe's stability."

Political Dynamics and Coalition Support

Alabali Radovan is a member of the Social Democrats, the junior partner of the governing coalition led by Chancellor Friedrich Merz's CDU.

Her proposal has the backing of Foreign Minister Johann Wadephul, a member of the conservative CDU, but faces opposition from other members of the party who oppose further exceptions to borrowing rules beyond those already approved, such as for defence spending.

Challenges in Budget Allocation

"I am already prioritising support for Ukraine, but there are many other crises and conflicts, too. And we work in the long term, which means large parts of our budget are already committed," Alabali Radovan said.

"That means the cuts hit crisis instruments above all, because – naturally – they work with flexible funds that are not yet pre-committed."

Call for Greater International Contribution

Alabali Radovan added that she supports Merz's call for other countries to contribute more.

"We are the strongest supporters, and I believe others can and should contribute more," she said.

($1 = 0.8887 euros)

(Reporting by Maria Martinez. Editing by Mark Potter)