In early August, Christian Lindner told his European colleagues that he would only support further military aid to Ukraine if they could attract additional funds to finance it. Because of the leaked letter, the ball is now in German domestic politics.
Shares in German defense companies Rheinmetall and Hensoldt, which makes radars for the Iris-T air defense system, fell after news of Lindner's letter. The chairman of the Bundestag's foreign affairs committee, Social Democrat Michael Roth, said the decision was wrong and that Ukraine needed Germany's support. According to him
By discussing future funding for military aid, Germany is secretly evading responsibility. We cannot make our security depend on budget cuts.
The ruling Greens and the opposition Christian Democrats also criticised the decision.
Why is the German government imposing a new condition for providing military aid?
Germany built a so-called debt brake into its constitution in 2009, meaning the deficit cannot exceed 0.35 percent of GDP in a fiscal year, unless there is an emergency. In recent years the government has set up special loan funds to evade the rule, but a constitutional court ruling this year blocked that, leaving only austerity.
Germany's coalition government has been discussing the budget for months. Lindner, leader of the fiscally conservative Free Democrats, insists that the ruling by Germany's constitutional court must be followed.
If the collapsing government coalition does not find a solution to the tight financial situation, the state's operation may be in danger.
Germany has so far provided the second-largest military aid to Ukraine after the United States, sending €7.5 billion in aid to the country's defenders this year alone.
Since the German economy is the sick man of Europe, it cannot afford to spend much if it wants to abide by the constitution. The government initially planned to provide military aid worth €4 billion for the next fiscal year, but announced on Monday that it was still negotiating the amount.
