Behind the scenes, the traffic light coalition is getting down to business. How the special fund for the Bundeswehr announced by Chancellor Olaf Scholz (SPD) on Sunday is to be designed, how the 100 billion euros in new loans are to be used in concrete terms, which are to flow into this sub-budget, how the goal postulated by Scholz can be achieved, yes to meet the so-called NATO quota quickly – everything is disputed between the SPD, the Greens and the FDP.
And then there is the Union, which is also allowed to fight. Because Chancellor and Finance Minister Christian Lindner (FDP) want to anchor the special fund in the Basic Law – which requires a two-thirds majority in the Bundestag, for which you need the CDU/CSU parliamentary group. Article 87a, which relates to the Bundeswehr, is said to be intended for addition.
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The Greens in particular are not yet convinced of the approach that Scholz and Lindner have come up with. You accept the special fund. But whether it will be used solely for military procurement is open from their point of view. They also want to use it to pay for “softer” measures – under the catchphrase that the concept of security should not be narrowed.
It’s about weapons – but not alone
“Investments in military defense must find an equivalent in civil protection, which must be massively strengthened,” said the parliamentary manager of the parliamentary group, Irene Mihalic, on Friday. “In addition, energy supply, development cooperation and humanitarian aid must also be looked at carefully.” It is also necessary to expand precautionary measures to protect the population and critical infrastructure, such as the energy supply. In other words, the Greens want such expenditure to be financed from the special pot – or more to be made available for it in the normal budget.
But above all, it is clear despite the green concerns, the special fund will be used for military procurement. Scholz himself named the US fighter jet F35 and new drones. Defense Minister Christine Lambrecht (SPD) currently has to collect priority projects. Because in addition to the amendment to the Basic Law, the coalition must soon also present an implementation law for the special fund, including an economic plan, in which specific spending projects must be named.
Independent sub-household
Apparently, there is also talk of giving the special fund its own credit authorization. It would be more independent of the federal budget and legally independent than, for example, the energy and climate fund, the second large special fund with which the traffic light primarily wants to finance investments in climate protection.
The NATO quota should be reached quickly. The partners in the defense alliance have agreed to put a sum equivalent to two percent of gross domestic product into the defense budget every year. Germany has not yet fulfilled this. In the draft budget for 2022, which is to be decided in the cabinet on March 16, around 50 billion euros have so far been earmarked for the Bundeswehr. That would be about 1.5 percent of GDP. The two percent target would thus be achieved with an additional 17 billion euros. In the coming years it would have to be 20 billion and more, especially since Scholz has announced that the NATO quota will be exceeded. For comparison: before 1990, federal defense spending was regularly well over the two percent mark.
NATO quota is to be exceeded
How does the coalition intend to achieve the goal? First, some of the money from the special fund is to be used to finance the growth towards the NATO quota. Most recently, around eight billion euros were earmarked for procurement in the defense budget, which could now be paid for with loans from the special fund. According to information from the Tagesspiegel, however, the coalition does not plan to end up with exactly two percent every year – it could also be less and then more again, they say, depending on the circumstances of the procurement. Major military projects often have snags during planning and implementation. At the latest when the special fund expires in a few years, it must be ensured that the NATO quota will be covered by normal income.
Union is needed
The coalition also wants to present a repayment plan for the new debt. She wouldn’t have to, because so far it has been planned to set up the special fund bypassing the debt brake in the Basic Law. If the emergency clause of the debt rule were used, the repayment of these loans would be mandatory (otherwise, bonds will be refinanced again and again with new loans after they expire). It sounds like a concession to the Union. They want to support the special fund and the amendment to the Basic Law, as CDU General Secretary Mario Czaja confirmed again on Friday. However, the funds should not be used for “deviating, irrelevant investments”, he told the editorial network Germany.
That in turn sounds like a rejection of the Greens. Unless, in this very large coalition – traffic lights plus black – a somewhat broader concept of security is chosen as the basis for the expenditure of the special fund. In any case, time is of the essence. The coalition wants to make a decision in a week and a half at the latest. At the The agreement lasted much longer with the relief package.