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Defence Min-Armed Forces Need Additional ~EUR6.5bn In 2025
Wires carrying comments from German Defence Minister Boris Pistorius who was speaking in Berlin. Pistorius spoke about the German military budget and NATO Secretary General Jens Stoltenberg's plan for a USD100bn fund to support arms to Ukraine. On domestic defence spending, Pistorius claims that the armed forces need an additional ~EUR6.5bn in the 2025 budget. The issue of Germany's federal budget has been a sensitive political topic in recent months.
- The sizeable hole was blown in the 2024 budget by a Constitutional Court ruling in late 2023. Tense negotiations reached an agreement for that year's budget, but the 2025 budget is already loomingwith further savings required. Pistorius has claimed commitments from Chancellor Olaf Scholz that the NATO 2% of GDP spending on defence target would be met.
- On the Ukraine fund, Pistorius says that "We have to be careful that structures aren't doubled up," adding that "National contributions must be taken into account in a NATO fund for Ukraine". This has been one of the main questions regarding the fund, whether it would be new cash or an amalgamation of existing funds. Pistorius would seem to favour the latter.
- The minister spoke at an event outlining a new unified operational commandfor the Bundeswehr , as well as the reorganisation of the armed fources into four branches. These are the army, navy, air force and a 'cyber and information space' force (CIR).
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.