Germany to soften spending rules for €100bil special fund

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Germany to soften spending rules for €100bil special fund
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Berlin aims to change the law to allocate funds for the upkeep of military purchases.

The special fund was established in the wake of Russia’s invasion of Ukraine to finance major defence projects.

Such a change may represent a setback for efforts to bring the German military back up to standard after decades of neglect as money goes on running costs rather than on major modernisation projects. “We have always said that the military’s demand exceeds the funds allocated in the government’s budget draft for next year,” she told reporters. “We have always said that we will draw more heavily on the special fund.”

The defence ministry is the only department not facing cuts as Germany plans in 2024 to comply with the Nato target of ring-fencing 2% of its gross domestic product for military spending.

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