Germany Needs No Further Debt Brake Exemptions for Ukraine Aid, Argues Analysis

German development aid minister Reem Alabali-Radovan and foreign minister Johann Wadephul are advocating for new exceptions to Germany's constitutional "debt brake" to finance support for Ukraine. This proposal suggests taking on more debt specifically for development cooperation with the war-torn country.

While acknowledging the necessity of supporting Ukraine, which is seen as crucial for German security interests and a humanitarian gesture, critics question the need for increased borrowing. They argue that the German government should demonstrate its ability to save money by cutting funding for less essential projects rather than resorting to further debt.

The NZZ Deutschland newsletter highlights several projects funded by the development ministry that are considered questionable. These include a €5 million investment in sustainable public transport in Albania, described as enhancing accessibility and inclusivity in urban areas. Another project, costing €6 million, focuses on promoting female entrepreneurship in the "green economy" in Algeria, specifically through the production and marketing of natural cosmetics.

Additionally, €1.08 million is allocated for a "Transformative Dialogue" aimed at fostering diversity and empowering young people. Critics contend that Germany has sufficient funds within its existing development aid budget, which still stands at approximately €10 billion this year (around 1.9% of the federal budget), to support Ukraine without breaching the debt brake.