Defense spending: Three years after Scholz speech: Dispute over special funds plus

Union and the SPD struggle before the start of possible explorations for a government alliance on the right way to quickly strengthen the Bundeswehr. The CDU/CSU faction favors a new special fund or the increase in the existing pot. Instead, the Social Democrats rely on a loosening of the debt brake anchored in the Basic Law. Both would require a two-thirds majority that the Union and the SPD would no longer have together with the Greens in the newly elected parliament. There is therefore a conversation to have the old Bundestag decided.

Exactly three years ago, Chancellor Olaf Scholz (SPD) proposed a special fund of 100 billion euros in the Bundeswehr in a speech. The background was the Russian attack on Ukraine three days earlier. Scholz spoke in the Bundestag on February 27, 2022, a Sunday, of a turning point.

On June 3, 2022, the Bundestag decided to anchor the Basic Law with the votes of the traffic light parties SPD, Greens and FDP and the Union to anchor the special fund of “once up to 100 billion euros”. However, it should be exhausted in 2027. From 2028, a total of at least 85 billion euros are required annually, i.e. around 30 billion more than currently, Defense Minister Boris Pistorius (SPD) already calculated. In addition, there is currently the demand of the new US President Donald Trump for significantly higher defense spending by NATO partners.

Special funds vs. Loosening of the debt brake

“In the Union faction, there is basically the willingness for a new or significantly higher Bundeswehr special assets,” said the Union Group’s budgetary spokesman, Christian Haase (CDU) of the “Rheinische Post”. “We have to be able to defend ourselves faster. Therefore, it could make sense to decide the special fund at short notice with the two-thirds majority of the old Bundestag,” emphasized Haase. He added: “At the moment we don’t want to talk about a reform of the debt brake. Because we need a cash fall first.” This then determines the financial framework for the next few years.

Hesse’s Prime Minister Boris Rhein (CDU) also goes to a quick decision on Bundeswehr special assets. “We have to be able to act quickly and also be able to act in a decent volume,” said Rhein in the “Berlin Playbook ” of the Political news magazine. “It is important to me that we are now making the Bundeswehr strong,” emphasized the CDU politician. Rhein also warned of a rushed reform of the debt brake. “You have to let care go with speed, and in this respect you have to take your time,” he warned.

The head of the Munich Ifo Institute, Clemens Fuest, sided with the Union. “The debt brake should be left as it is, but I think the creation of another special fund for defense is highly recommended,” said the economist of the “Augsburg Allgemeine”. If the step to have the old Bundestag decided on such a assets was constitutionally permitted, it would support the step.

Warning of patch shower through special funds

The SPD budgetary politician Andreas Schwarz had previously advertised in the debate about securing significantly higher defense spending on reforming the debt brake. A location of the costs in the household is much more transparent than in another special fund for the Bundeswehr, said Schwarz. He is an expert in his parliamentary group for the defense budget.

Lower Saxony’s Prime Minister Stephan Weil (SPD) opened in the interview of the TV station Phoenix whether the old Bundestag should still decide a special fund to strengthen defense ability. You have to regulate that internally and trustingly. Basically, he called it a “patch” to form one special fund after another. It is also an admission that the debt brake – as is currently anchored – does not work.

Because a “sensible” reform of the debt brake warned. Nobody believes that the huge tasks of the state can be financed from the postage.

The Verdi service union also sees it that way. Union and the SPD would have to make a reform of the debt brake “at the top” in the explorations, Verdi boss Frank Werneke told the newspapers of the Funke media group. With savings appeals and tax cuts, a new federal government will quickly reach its limits. “With a new edition of the special fund in favor of the Bundeswehr alone, the huge structural policy tasks cannot be solved,” emphasized the Verdi boss.