Bundeswehr Association demands “power word” from Scholz in the financing dispute

As of: April 10, 2024 12:15 p.m

Defense Minister Pistorius has already spoken out several times in favor of increasing the budget for the Bundeswehr. The FDP opposed this. The Bundeswehr Association is now demanding a “word of power” from the Chancellor.

The chairman of the Bundeswehr Association, Colonel André Wüstner, has demanded clarity from Chancellor Olaf Scholz in the dispute over further financing of the Bundeswehr.

“If words such as defense capability, protection or defensiveness are not to be mere empty words for our government, Chancellor Scholz must exercise his authority to direct policies and speak out. If he does not do this, the turning point must be declared over, at least in the Bundeswehr,” said Wüstner dpa news agency.

Wüstner sees expansion Defense industry endangered

Specifically, he also warned that the German defense industry would not continue the urgently needed expansion of its capacities if the so-called special fund was planned for the end of this year without the further course being recognizable.

According to Wüstner, he also sees the reform of the Bundeswehr that Pistorius is aiming for, the stationing of the Lithuanian brigade or the fulfillment of NATO commitments from 2025 at risk. “It’s good that many in the government coalition and also in the opposition are now talking about increasing the defense budget. It would be better if they actually did it,” he demanded.

Special assets will probably be used up by 2027

In response to the Russian war of aggression against Ukraine, Scholz proclaimed a “turning point”. Defense Minister Boris Pistorius’ declared goal is to make the Bundeswehr “war-ready”. The federal government also promised that Germany will achieve the minimum share of gross domestic product (GDP) stipulated in NATO – the so-called two percent target – for the first time this year. The means for this is the 100 billion euro, loan-financed special fund for the Bundeswehr.

According to the Ministry of Defense, around 80 percent of the special assets are currently “tied”. This term includes binding decisions, such as contracts, binding orders or even political determinations. According to plans, 100 percent will be tied up in this way by the end of this year. At the end of 2027, the special fund will be “spent”. The money is then drained or blocked for remaining payments.

Discussion about financing the Bundeswehr

Instead of increasing the special fund, Pistorius advocated increasing the defense budget in February. On Monday evening he suggested on ZDF that necessary additional spending for the Bundeswehr be excluded from the debt brake. Budget reallocations alone would not be enough “given the amounts we are talking about,” said Pistorius. “If in doubt, we will also have to talk about additional debt – in this coalition or in the next.”

The FDP, on the other hand, continued to insist on strictly adhering to the debt brake and, in return, brought up cuts in the social sector. FDP parliamentary group leader Christian Dürr told the Bayern media group with regard to Pistorius’s move: “No, that’s not a viable option.” Instead, one must “use the available money wisely” and “set priorities in the budget”.

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