Germany discusses fund creation to strengthen defense and Ukraine aid - Bloomberg

According to Bloomberg's sources, German Chancellor Friedrich Merz has begun talks with the Social Democrats (SPD) to quickly approve a special defense spending package worth up to 200 billion euros (210 billion US dollars).

This step is aimed at strengthening the country's defense capabilities in the face of Russian aggression, the source said.

Three key options are being considered in the talks: creating a new fund, expanding the existing one by 100 billion euros, or adapting the debt brake to increase spending on defense and aid to Ukraine.

These measures are aimed at circumventing the severe restrictions on public borrowing that hinder the ability to allocate funds for the military.

However, any of these solutions would require a two-thirds supermajority in parliament, making it difficult in a time of political instability when fringe parties block such initiatives.

Financing military spending

Merz, who has promised to increase military investment, has faced difficulties after elections where the majority parties do not have the necessary number of votes to override constitutional restrictions. One possible solution would be to vote on the new package before the new parliament begins its work, which would avoid additional political obstacles.

At the same time, the need for additional support for Ukraine is being discussed in the international arena. The recent talks between Donald Trump and Vladimir Putin on the settlement of the conflict in Ukraine have put Germany in a position to respond to global challenges in an accelerated manner.

The SPD and the Christian Democratic Union are considering several options for financing military spending, but political instability and the possibility of a constitutional amendment make these discussions even more tense.

Telephone talks with SPD leader Lars Klingbeil are expected soon, as well as the start of coalition talks after the regional elections in Hamburg. If the talks are successful, Germany could approve changes that will support its strategic leadership in Europe.

Currently, all attention is focused on whether German political forces will be able to agree on the necessary solution in the face of global political instability.

The leader of the Christian Democratic Union, Friedrich Merz, expressed his position on Ukraine, calling for Kyiv's participation in peace talks with Russia.

In his opinion, Kyiv must be represented in the discussions, especially in the context of negotiations between the United States and Russia, in which Ukraine does not participate.