Bloomberg estimates that Germany will increase borrowing plans by nearly €40 billion this year. This will help to minimize the negative effects of the Russian-Ukrainian conflict and sanctions against Russia. As a result, the net debt of Germany will amount to €140 billion.
The adjustment is needed to help finance a range of government measures designed to mitigate the consequences of anti-Russian sanctions and the geopolitical confrontation in Eastern Europe. Germany will use the funds to offset the cost of energy and reduce the burden on companies and consumers. The proposal was made by Christian Lindner, the German finance minister. On 27 April, his financial plan was sent to the cabinet and then to the parliament.
At the end of February 2022, Chancellor Olaf Scholz announced a special off-budget fund worth €100 billion to pay for military spending. It is estimated that total new borrowing is likely to exceed €140 billion by the end of this year. According to Bloomberg, Germany's debt stood at €130 billion in 2020 and soared to a record €215 billion last year.
This month, Scholz said Berlin had exhausted the weapons supply limit. The German government has sent a request to arms manufacturers asking for a deadline for the production. Previously, the German chancellor said that Kyiv had requested a host of offensive weapons, including anti-tank guns, long-range artillery, and air defense equipment.
However, many German public figures spoke out against the chancellor's actions. They wrote to Scholz, urging him to stop supplying weapons so as not to exacerbate the Russian-Ukrainian conflict. In the opinion of the public figures, this prevents diplomatic efforts to resolve the crisis. By providing weapons to Ukraine, Germany and NATO members made themselves a party to the conflict, the letter highlights.
