The chancellor has spoken in favor of relaxing the constitutional ‘debt brake’ mechanism to continue supporting Ukraine
German Chancellor Olaf Scholz has called on the country’s parliament to declare a state of emergency over the Ukraine conflict. The head of government said he wants the constitutional ‘debt brake’ mechanism relaxed in order to ensure continued support for Kiev.
Enshrined in the German constitution, the limit dictates that the government cannot take on debts worth more than 0.35% of the country’s annual GDP. Temporary exceptions are allowed “in the event of natural disasters or exceptional emergency situations that are beyond the control of the state,” as long as the Bundestag supports the move. This, for instance, was done during the Covid-19 pandemic.
Speaking during a press conference on Thursday, Scholz said that the “Bundestag should adopt a resolution as soon as possible, whereby the war in Ukraine and its grave consequences for Germany’s and Europe’s security are classified as an emergency situation.” He explained that this would ensure that aid for Ukraine, “which is more important today than ever, no longer comes at the expense of the other duties that our state has to fulfil towards its own citizens.”
The chancellor added that US President Donald Trump is right to demand that European NATO member states shell out more for their defense, stressing that military-related spending “must grow considerably more.” Scholz dismissed the idea that the necessary funds could be obtained from the existing budget.
Speaking on the debt brake, the chancellor suggested permanently exempting defense spending from the limit.
Scholz welcomed President Trump’s phone call with his Russian counterpart, Vladimir Putin on Wednesday, stressing at the same time that the principle “nothing about Ukraine without Ukraine and nothing about Europe without Europe” should be respected.
According to the Kiel Institute for the World Economy, between January 2022 and October 2024, Germany provided Ukraine with €11 billion ($11.5 billion) worth of assistance, emerging as its second-largest backer after the US.
Meanwhile, amid the decoupling from relatively inexpensive Russian energy and several other factors, the German economy contracted for a second straight year in 2024 for the first time in more than two decades, according to a report released last month by the country’s federal statistics office Destatis.
Among the sectors bearing the brunt of the downturn is the country’s automotive industry.
Commenting on Scholz’s remark, former Russian President Dmitry Medvedev suggested that by highlighting his staunchly pro-Ukrainian stance, the German chancellor had struck a pose in stark contrast to US President Donald Trump’s position. Medvedev, who currently serves as the deputy chairman of Russia’s Security Council, opined that the German chancellor is hoping to thus score political points at home ahead of the February 23 snap general election, with his party projected to lose to its Christian Democratic Union rivals.
