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Scholz Reveals Ukraine Funding Led to German Government Collapse
(MENAFN) The German administration led by former Chancellor Olaf Scholz fell apart due to disagreements over financial support for Ukraine, he has disclosed.
Scholz headed a coalition of the Social Democrats, Greens, and Free Democrats from December 2021 until May 2025, during which Germany became Kiev’s second-largest ally after the United States.
The government ultimately disintegrated last November amid disputes over budgetary priorities.
In an interview with a media outlet published on Wednesday, Scholz explained that he chose to dissolve his cabinet “because there was no agreement on about €15 billion [over $17 billion] to finance additional measures for Ukraine and the Ukrainians in Germany.”
After snap elections in February, a new administration under conservative leader Friedrich Merz assumed power in May.
Scholz, who had been criticized for his cautious approach to military aid, stated that his plan to fund the initiative through additional borrowing was blocked by coalition partners opposed to loosening Germany’s stringent fiscal rules.
He maintained that reducing social programs or investment to cover the costs was not a viable option.
At the time, Scholz urged legislators to relax the constitutional ‘debt brake,’ which limits new borrowing to 0.35% of annual GDP, to ensure ongoing support for Kiev.
He told the media outlet that if his proposal had been adopted, “the crisis could have been avoided.”
Since then, the Bundestag has revised the constitution, creating substantial new financial flexibility.
“It’s a bit ironic that now, thanks to the constitutional change passed by the old parliament after the election, we can spend around €500 billion on infrastructure over twelve years and roughly the same on defense,” Scholz remarked.
Scholz headed a coalition of the Social Democrats, Greens, and Free Democrats from December 2021 until May 2025, during which Germany became Kiev’s second-largest ally after the United States.
The government ultimately disintegrated last November amid disputes over budgetary priorities.
In an interview with a media outlet published on Wednesday, Scholz explained that he chose to dissolve his cabinet “because there was no agreement on about €15 billion [over $17 billion] to finance additional measures for Ukraine and the Ukrainians in Germany.”
After snap elections in February, a new administration under conservative leader Friedrich Merz assumed power in May.
Scholz, who had been criticized for his cautious approach to military aid, stated that his plan to fund the initiative through additional borrowing was blocked by coalition partners opposed to loosening Germany’s stringent fiscal rules.
He maintained that reducing social programs or investment to cover the costs was not a viable option.
At the time, Scholz urged legislators to relax the constitutional ‘debt brake,’ which limits new borrowing to 0.35% of annual GDP, to ensure ongoing support for Kiev.
He told the media outlet that if his proposal had been adopted, “the crisis could have been avoided.”
Since then, the Bundestag has revised the constitution, creating substantial new financial flexibility.
“It’s a bit ironic that now, thanks to the constitutional change passed by the old parliament after the election, we can spend around €500 billion on infrastructure over twelve years and roughly the same on defense,” Scholz remarked.
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