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UKRAINE

Germany’s Bundestag approves €100 billion fund to beef up defences

The German parliament voted on Friday for a constitutional amendment to create a € 100 billion fund beefing up its military defences in the face of an emboldened Russia.

Germany's Bundestag approves €100 billion fund to beef up defences
German Chancellor Olaf Scholz addresses parliament on a budget debate during a session at the Bundestag (lower house of parliament) in Berlin on June 1, 2022. (Photo by Tobias SCHWARZ / AFP)

Deputies of the Bundestag lower house approved the measure 567 votes to 96 with 20 abstentions after the centre-left-led government and the conservative opposition reached a deal on Sunday.

The watershed move answers years of criticism from close allies that Berlin was failing to achieve NATO’s target of spending two percent of GDP on defence.

The Bundesrat upper house must still approve the measure.

“This is the moment in which Germany says we are there when Europe needs us,” Foreign Minister Annalena Baerbock of the Green party told MPs.

READ ALSO: ANALYSIS: Are Germans questioning Merkel’s legacy?

Three days after the Russian invasion of Ukraine in February, Chancellor Olaf Scholz pledged a special budget of 100 billion euros to rearm the German military and modernise its outdated equipment over the next few years.

But critics have since accused Scholz of timidity in his support for Kyiv and failing to take enough concrete action in terms of arms deliveries.

The agreement will allow Berlin to achieve NATO’s target of spending 2.0 percent of GDP on defence “on average over several years”.

Russia blasted the move on Friday, accusing Germany of “remilitarising” and using language that summoned up its Nazi past.

“We take that as another confirmation that Berlin is on the path to a new re-militarisation,” said Russian foreign ministry spokeswoman Maria Zakharova.

“We know only too well how that can end.”

It appeared to be a reference to Nazi Germany’s re-armament programme in the 1930s under Adolf Hitler that plunged the world into war.

‘Largest army in Europe’

The bulk of the German investment — € 40.9 billion — will go toward the air force with the acquisition of 35 US-made F-35 fighter jets, 15
Eurofighter jets and 60 Chinook transport helicopters.

READ ALSO: Germany to deliver air defence system to Ukraine, says Scholz

Nearly € 20 billion will be earmarked for the navy, mainly for new corvettes, frigates and a 212-model submarine. More than € 16 billion will beef up the army’s holdings with Marder transport tanks and Fuchs armoured troop carriers.

Scholz said this week that the agreement would “considerably strengthen” the security of Germany and its NATO allies.

“Germany will soon have the largest conventional army in Europe within NATO,” he told local media.

The exceptional fund will be financed by additional debt.

For that, it was necessary to circumvent the “debt brake” rule enshrined in the constitution, which caps government borrowing. This was why the government needed the support of the conservative opposition to muster the two-thirds majority in parliament needed to pass the constitutional amendment.

READ ALSO: Putin can’t dictate peace in war he ‘won’t win’ says Germany’s Scholz

Since the end of the Cold War, Germany has significantly reduced the military from around 500,000 in 1990 to just 200,000 today.

Fewer than 30 percent of German naval ships were “fully operational” according to a report published December on the state of the military.

Many of the country’s fighter aircraft are unfit to fly.

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UKRAINE

German economy minister makes unexpected visit to Ukraine

German Vice Chancellor and Economy Minister Robert Habeck unexpectedly arrived in Kyiv on Thursday to discuss post-war reconstruction and show support after Russian attacks on key Ukrainian infrastructure.

German economy minister makes unexpected visit to Ukraine

“This visit comes at a time when Ukraine needs all the support it can get in its fight for freedom,” Habeck told reporters in the Ukrainian capital.

“And it is a fight for freedom, that’s the important thing that the world, Europe and Germany mustn’t forget,” he said, adding that Ukraine was “fighting for the values that define Europe”.

The trip comes after Germany at the weekend announced it was sending an additional Patriot air defence system to Ukraine after pleas from Kyiv for its Western backer to urgently help foil Russian attacks.

Ukraine has said it is running out of weaponry to shoot down Russian missiles and drones as Moscow ramps up attacks on energy infrastructure.

German Chancellor Olaf Scholz on Wednesday urged fellow EU leaders to urgently follow Berlin’s lead and send more air defence systems to Ukraine.

Habeck, who was accompanied by a business delegation on the trip, will hold talks with President Volodymyr Zelensky.

He will also meet with Ukrainian officials to discuss emergency aid and business ties as well as preparations for the annual Ukraine Recovery Conference to be held in Berlin in June, the German economy ministry said in a statement.

“Comprehensive support for Ukraine also includes support for a resilient energy supply and reconstruction. Private sector investment is crucial for this to succeed,” Habeck was quoted as saying in the statement.

The World Bank has estimated the total cost of reconstruction facing Ukraine more than two years since the start of the war is at least $486 billion.

OPINION: Germany’s timid strategy risks both Ukraine’s defeat and more war in Europe

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