https://sputnikglobe.com/20231123/uber-alles-germany-to-choose-lifeline-for-its-embattled-economy-over-ukraine-aid-1115159618.html
Uber Alles? Germany to Choose Lifeline for Its Embattled Economy Over Ukraine Aid
Uber Alles? Germany to Choose Lifeline for Its Embattled Economy Over Ukraine Aid
Sputnik International
Berlin is facing a tough choice between financial support for German businesses and continuing to prop up Ukraine.
2023-11-23T11:52+0000
2023-11-23T11:52+0000
2023-11-23T11:52+0000
world
germany
ukraine
russia
nato
proxy war
olaf scholz
european union (eu)
recession
economic recession
https://cdn1.img.sputnikglobe.com/img/104828/39/1048283900_0:140:5135:3028_1920x0_80_0_0_294a3ec01bcba973009d6f4f68239884.jpg
Berlin is facing a tough choice between financial support for German businesses and continuing to waste money on the "failed project" that is NATO’s proxy war against Russia in Ukraine.As "Ukraine fatigue" percolating throughout the West increasingly pulls the rug from under Kiev’s hopes for continued financial and military assistance being funneled to it, another blow might have been dealt to Europe’s efforts to sustain aid for the regime, the WSJ noted.German Finance Minister Christian Lindner announced a freeze on public spending for the rest of the year on Monday. Applicable to almost the entire budget for 2023, the decision was made due to "the need to review the overall budgetary situation for the federal budget," as per a statement from the ministry. The move came in the wake of a bombshell ruling by the Federal Constitutional Court last week.The judicial ruling stated that the €60 billion (over $65 billion) earmarked for the pandemic response cannot be repurposed for other initiatives, like advancing green manufacturing practices or boosting solar energy production. The court said Berlin was bound by the country’s constitutionally enshrined fiscal rules that limit budget deficits to 0.35% of gross domestic product in normal times.The implications of the move are such that Chancellor Olaf Scholz’s government is now facing a dilemma. The increasingly unpopular Scholz Cabinet had been counting on a flood of spending on "green-energy projects and technology," along with multibillion-euro-worth subsidies to construct chip-making plants, the WSJ underscored. Now, Berlin will either have to go ahead with painful budget cuts or raise taxes, or even both. But most importantly, in the short term, Berlin will need to decide whether priority shall be given to boosting Europe’s collective defense, and directing more aid to the Kiev regime, or “cushioning the impact of surging energy prices and inflation on businesses and households,” the outlet said.Nevertheless, Berlin will continue supporting a €50 billion four-year Brussels budget package for Ukraine for next year, according to cited German sources conferring with the bloc’s officials on November 17.Germany has been dealt a more hard-hitting blow than other EU members by backfiring sanctions on Russian gas, oil, and coal imports imposed by the West over the Ukraine crisis. A recent survey of economists by a US-based news website found that Germany, which risks “deindustrialization” amid high energy costs on top of other chronic problems, is unlikely to escape recession until 2024. Energy prices are expected to remain high, and energy-intensive manufacturing is being squeezed out of the country. German funding for Ukraine for 2023 amounts to €5.4 billion, after €2 billion were spent on the regime in 2022. The German government was reportedly gearing up to double its aid for Ukraine next year to €8 billion, yet it remains to be seen how the current fiscal woes will factor into these plans.
https://sputnikglobe.com/20231122/germany-freezes-spending-as-top-court-blocks-diverting-previously-earmarked-covid-funds-1115126226.html
https://sputnikglobe.com/20231120/german-courts-decision-stops-scholz-governments-budget-maneuver-amid-dire-economic-straits-1115074069.html
https://sputnikglobe.com/20231112/germany-to-double-military-aid-for-ukraine-to-86bln-in-2024---reports-1114895127.html
germany
ukraine
russia
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2023
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
russia, ukraine, nato's proxy war against russia in ukraine, chancellor olaf scholz, germany's constitutional court verdict, backfiring sanctions, germany deindustrialization, recession
russia, ukraine, nato's proxy war against russia in ukraine, chancellor olaf scholz, germany's constitutional court verdict, backfiring sanctions, germany deindustrialization, recession
Uber Alles? Germany to Choose Lifeline for Its Embattled Economy Over Ukraine Aid
The German Finance Ministry has announced a freeze on almost all new spending approvals for 2023, permitting only current liabilities and exceptional new obligations, after a Federal Constitutional Court ruling questioned the legality of several hundred billion euros in special funds.
Berlin is facing a tough choice between financial support for German businesses and continuing to waste money on the "failed project" that is
NATO’s proxy war against Russia in Ukraine.
As
"Ukraine fatigue" percolating throughout the West increasingly pulls the rug from under Kiev’s hopes for continued financial and military assistance being funneled to it, another blow might have been dealt to Europe’s efforts to sustain aid for the regime, the
WSJ noted
.German Finance Minister Christian Lindner announced
a freeze on public spending for the rest of the year on Monday. Applicable to almost the entire budget for 2023, the decision was made due to "
the need to review the overall budgetary situation for the federal budget," as per a statement from the ministry. The move came in the wake of a bombshell ruling by the Federal Constitutional Court last week.
22 November 2023, 13:36 GMT
The judicial ruling stated that the €60 billion (over $65 billion) earmarked for the pandemic response cannot be repurposed for other initiatives, like advancing green manufacturing practices or boosting solar energy production. The court said Berlin was bound by the country’s constitutionally enshrined fiscal rules that limit budget deficits to 0.35% of gross domestic product in normal times.
The implications of the move are such that
Chancellor Olaf Scholz’s government is now facing a dilemma. The increasingly unpopular Scholz Cabinet had been counting on a flood of spending on "
green-energy projects and technology," along with multibillion-euro-worth subsidies to construct chip-making plants, the
WSJ underscored. Now, Berlin will either have to go ahead with painful
budget cuts or
raise taxes, or even both.
But most importantly, in the short term, Berlin will need to decide whether priority shall be given to boosting Europe’s collective defense, and directing more aid to the Kiev regime, or “cushioning the impact of surging energy prices and inflation on businesses and households,” the outlet said.
Nevertheless, Berlin will continue supporting a €50 billion four-year Brussels budget package for Ukraine for next year, according to cited German sources conferring with the bloc’s officials on November 17.
20 November 2023, 16:11 GMT
Germany has been dealt a more hard-hitting blow than other EU members by
backfiring sanctions on Russian gas, oil, and coal imports imposed by the West over the Ukraine crisis. A recent survey of economists by a US-based news website found that Germany, which risks “deindustrialization” amid high energy costs on top of other chronic problems, is unlikely to escape recession until 2024. Energy prices are expected to remain high, and energy-intensive manufacturing
is being squeezed out of the country.
German funding for Ukraine for 2023
amounts to €5.4 billion, after €2 billion were spent on the regime in 2022. The German government was reportedly gearing up to double its aid for Ukraine next year to €8 billion, yet it remains to be seen how the current fiscal woes will factor into these plans.
12 November 2023, 06:07 GMT
